Cellular Goods PLC (LSE:CBX) shares vaulted 21% higher to 0.52p after its wholly owned subsidiary King Tide Carbon Canada formed a joint venture to "explore the untapped potential of kelp" as a tool to fight climate change and help decarbonise global supply chains.
The joint venture comes after the London-listed company acquired King Tide Carbon in May and then in July formed an agreement with Springtide Seaweed, a Maine-based kelp farming specialist.
Under today's two-year agreement, the new joint venture will focus on using kelp farming as a carbon sequestration, with the two companies identifying, analysing and selecting kelp species, cultivation techniques and harvesting techniques to maximise carbon sequestration and removal.
Darcy Taylor, Cellular Goods's interim chief executive, said: "King Tide's mission is to harness the power of the oceans to remove carbon dioxide from the atmosphere sustainably and at scale. Our partnership with Springtide Seaweed secures a proven, reliable and scalable supply of kelp, setting the stage for a new era of oceanic carbon sequestration innovation."
The rapid growth of kelp plants, which can grow up to 2-30 metres tall during their life and up to 61cm per day, means they are absorbing a higher amount of carbon dioxide than forests on land. When kelp dies, most of the absorbed carbon dioxide is locked up in its tissues and transported to the ocean floor.