Biofouling is the colonisation of submerged surfaces, like ships hulls, by unwanted marine organisms. Culprits range from ‘hard fouling’ organisms like barnacles or mussels to ‘soft fouling’ organisms like algae or seaweed. 

Biofouling creates a cost burden for the $14 trillion global shipping industry. Presence of these organisms increase drag, and reduce fuel efficiency, by up to 40%. Vessels also suffer from increased maintenance costs, reduced speeds and ships having to be brought out of the water more frequently. The U.S. shipping industry spends more than $36 bn each year in added fuel costs alone due to biofouling.

Biofouling is also an emissions and biodiversity issue because of its ability to spread invasive aquatic species. Increased fuel consumption translates to increased emissions (up to 55%). Biofouling also serves as a vector for invasive species transportation. Estimates put the cost of invasive aquatic species at $23B in damages annually to marine ecosystems and infrastructure.

Regulation is emerging across geographies to tackle Biofouling. The IMO's aggressive emissions targets (40% by 2030, 70% by 2050) are forcing operators to cut emissions in order to operate. Similarly new guidance has been released specific to biofouling. Some ports are even offering ships incentives for good sustainability performance such as reduced fees.

Anti-biofouling coatings have a precedent of environmental regulations being made against them, opening an opportunity for new start-ups. Historic solutions like tributyltin (TBT) and copper-based coatings have been either banned or face increasing scrutiny due to their toxicity to marine life.

Traditional anti-fouling approaches centered around copper-based paints and coatings, though these face increasing scrutiny due to environmental concerns about bioaccumulation

Emerging innovative solutions fall into two main categories:

• Advanced Coatings: Including hydrogel barriers, organism-based solutions, and texture-based approaches that aim to be more environmentally friendly

• Cleaning Robotics: Utilising various mechanisms including direct brushing, laser-based cleaning, high-pressure water jets, and ultrasonic vibrations, with reported fuel savings of 5-15%

Long sales cycles. New solutions must navigate complex approval processes (from shipholders, port authorities and reg bodies) across multiple jurisdictions, often requiring years of testing. For example, many ports require proof that tech does not lead to paint chipping on boats, which itself can be a source of contamination.

New innovations will remain motivated by ecological concerns if regulations do not tighten. This may limit market reach if new regulations that are expected are not introduced. While antifouling coatings are more of a proactive approach, there are existing solutions that are already compliant with current regulations = less room for newer players.

The economics of fuel savings offer creative revenue models. With fuel representing up to 50-60% of vessel operating cost. Even small efficiency improvements can translate to hundreds of millions $ across a fleet of vessels.  We’ve been excited by start-ups that have been deploying performance-based pricing models - taking a chunk of the savings they create for shippers.

Global nature of shipping as an adoption driver: Given the global nature of shipping trade, ports across the world need servicing even if they don’t have strict regulations themselves, e.g. for Chinese ships to enter into Australian and New Zealand waters they must comply with local regs (See recent examples here)

Over 500 organizations and $17.7 trillion AUM now committed to TNFD-aligned risk management and corporate reporting 

Alipay Ant Forest and IUCN Red List Join Forces to Increase Public Awareness and reach 100 million people to take action for Biodiversity

Agtech VC investment on the rise again but exits still elude the industry, says new PitchBook data

World faces $942bn funding gap for delivering 2030 biodiversity targets

JP Morgan Chase’s biodiversity lead says funding nature-based solutions is key as banks move away from traditional ESG policies.

AI and other new tools bolster tracking of deforestation

Bowery, once a leading indoor farming company valued at $2.3B, shuts down

Africa-based start-up Tehanu, has executed the first interspecies financial transactions, creating digital wallets for mountain gorillas.

How Colombia’s mangrove stewards are pioneering a climate and nature-positive approach

Over 40% of reef-building coral species are at risk of extinction worldwide, according to a new assessment released Wednesday during the ongoing COP29 climate summit in Azerbaijan.

Emperor penguin found on Australian beach 2,200 miles from its Antarctic home in historic first

During the 47th annual meeting of the General Fisheries Commission for the Mediterranean (GFCM), the EU agreed on important measures in favour of sustainability of the Mediterranean and the Black Sea.

COP 16’s Chaotic End: What It Means For The Future Of Biodiversity

Hula Earth, a Germany-based nature tech company raised €1.6 million in pre-seed funding to scale its automated biodiversity monitoring platform, it announced on Wednesday.

Ulysses, a marine-based drone start-up designed to plant seagrass, has raised a $2M pre-seed led by Lowercarbon Capital.

Klim has raised $22M in Series A funding to take it’s regenerative farming platform global.