Economic feasibility analysis of macroalgae farming-based carbon dioxide removal

Firman, Zulpikar and Tri, Handayani and Jeverson, Renyaan and Hafiizh, Prasetia and Muhammad, Safaat and Mauliva Hada, Putri Ary (2023) Economic feasibility analysis of macroalgae farming-based carbon dioxide removal. Journal of Sustainability Science and Management (Malaysia), 18 (8). pp. 116-124. ISSN 2672-7226

Macroalgae farming has been proposed to remove carbon dioxide in climate mitigation programs. However, the success of this initiative will depend on economic feasibility. Two types of macroalgae farming, Kappaphycus alvarezii and Gracilaria sp. cultivated in Serang Banten were used to determine the economic feasibility of this concept in the future. Data on the farming cost and business profile were collected through interviews with macroalgae farmers. The results showed that the investment cost for K. alvarezii was 20,042,423 IDR/ha/year (eq. to 1,432 USD), while Gracilaria sp. is lower at about Rp. 13,598,831 IDR/ha/year (eq. to 971 USD), with macroalgae biomass production reaching 8.3 tonnes/ha/year and 6.0 tonnes/ha/year respectively. The potential for carbon dioxide absorption through the cultivation of K. alvarezii and Gracilaria sp. are estimated at 9.13 tonnes CO2 /ha/year and 6.60 tonnes CO2 /ha/year. The investment cost of reducing emissions by cultivating macroalgae ranges from 2,058,557-2,193,233 IDR/ton CO2 (eq. to 147-157 USD). This value is not yet feasible economically, but relatively lower than the estimated average cost of reducing emissions using macroalgae in the region. Our study provides a preliminary estimate of the investment cost and capacity of macroalgae farming based carbon removal that can be considered in future climate mitigation programs.

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Abstract

Macroalgae farming has been proposed to remove carbon dioxide in climate mitigation programs. However, the success of this initiative will depend on economic feasibility. Two types of macroalgae farming, Kappaphycus alvarezii and Gracilaria sp. cultivated in Serang Banten were used to determine the economic feasibility of this concept in the future. Data on the farming cost and business profile were collected through interviews with macroalgae farmers. The results showed that the investment cost for K. alvarezii was 20,042,423 IDR/ha/year (eq. to 1,432 USD), while Gracilaria sp. is lower at about Rp. 13,598,831 IDR/ha/year (eq. to 971 USD), with macroalgae biomass production reaching 8.3 tonnes/ha/year and 6.0 tonnes/ha/year respectively. The potential for carbon dioxide absorption through the cultivation of K. alvarezii and Gracilaria sp. are estimated at 9.13 tonnes CO2 /ha/year and 6.60 tonnes CO2 /ha/year. The investment cost of reducing emissions by cultivating macroalgae ranges from 2,058,557-2,193,233 IDR/ton CO2 (eq. to 147-157 USD). This value is not yet feasible economically, but relatively lower than the estimated average cost of reducing emissions using macroalgae in the region. Our study provides a preliminary estimate of the investment cost and capacity of macroalgae farming based carbon removal that can be considered in future climate mitigation programs.

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Item Type:	Article
AGROVOC Term:	Kappaphycus alvarezii
AGROVOC Term:	Gracilaria spinigera
AGROVOC Term:	climate change mitigation
AGROVOC Term:	emission reduction
AGROVOC Term:	feasibility studies
AGROVOC Term:	cost analysis
AGROVOC Term:	economic analysis
AGROVOC Term:	sustainable aquaculture
Geographical Term:	Indonesia
Uncontrolled Keywords:	Macroalgae farming, CDR, investment analysis, climate mitigation.
Depositing User:	Nor Hasnita Abdul Samat
Date Deposited:	20 Mar 2025 04:21
Last Modified:	20 Mar 2025 04:21
URI:	http://webagris.upm.edu.my/id/eprint/1633

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