Seaweed cultivation in the Faroe Islands: Analyzing the potential for forward and fiscal linkages

To facilitate a fair bioeconomy transition, stronger regional‐level linkages are needed

“…These cases correspond to the three most advanced and non‐food biorefinery concepts based on lignocellulosic, wet and marine biomass, respectively (see Table 2). 21 They are all reported in greater detail elsewhere, as part of the New Nordic Ways to Green Growth research project 22,23,24 …”

“…With only a few small‐scale producers the raw seaweed is destined for export; apart from washing, drying, ensiling and milling, further processing takes place elsewhere. The industries that can make use of seaweed are not situated in the coastal communities, and with their remoteness and small population base, local demand for other seaweed‐derived products remains too limited to support a viable business model for processing 23 . It would also require higher market prices for processed seaweed to trigger forward linkages in the region.…”

“…Although the collapse of the economy in the 1990s led to legislation allowing for the charging of resource rents, the law was soon revoked, a start–stop policy process that repeated itself in 2018–2019, despite fishing licenses being concentrated on still fewer vessel owners. Economic experts assess that a potential royalty income of more than €2 billion could accrue annually from marine resources 23 . Nevertheless, apart from a small turnover tax on aquaculture, political pressures from vessel and fish farm owners indebted to foreign investors have been sufficiently strong to fend off the institutionalization of such fiscal linkages.…”

“…21 They are all reported in greater detail elsewhere, as part of the New Nordic Ways to Green Growth research project. 22,23,24 The brown value chain: Lignocellulosic biomass from forestry for advanced biofuels…”

“…The industries that can make use of seaweed are not situated in the coastal communities, and with their remoteness and small population base, local demand for other seaweed-derived products remains too limited to support a viable business model for processing. 23 It would also require higher market prices for processed seaweed to trigger forward linkages in the region. Despite an innovative method to avoid the costly re-seedling of brown seaweeds (Saccharina latissima), the production costs, especially salaries, remain high in comparison with Asia's nearshore and manual labor approach.…”