Economic Feasibility Analysis of Macroalgae Farming-Based Carbon Dioxide Removal Firman Zulpikar (a*) Tri Handayani (a), Jeverson Renyaan (a), Hafiizh Prasetia (b), Muhammad Safaat (b), Ary Mauliva Hada Putri (b)
a) Research Center for Oceanography, The National Research and Innovation Agency (BRIN)
* firman.zulpikar[at]brin.go.id
b) Research Center for Chemistry, The National Research and Innovation Agency (BRIN)
Abstract
Macroalgae is one of Indonesia^s leading marine commodities that may be used as carbon sinks in climate mitigation programs. The success of large-scale CO2 emission reduction based on macroalgae cultivation will depend on several aspects, including economic feasibility. This study uses a business analysis approach to determine the feasibility of this concept in the future. Two types of macroalgae, Kappaphycus alvarezii and Gracilaria sp. cultivated in Serang Banten, were used to compare the investment costs, production, and estimates of the total carbon absorbed in a certain period. Data was collected through interviews with macroalgae farmers and secondary data analysis. The results showed that the investment cost for Kappaphycus alvarezii was Rp. 28.25 million/ha/year, while Gracilaria sp. is lower at about Rp. 16.6 million/ha/year, with macroalgae biomass production reaching 8.3 tons/ha/year and 6.0 tons/ha/year respectively. Referring to the average macroalgae carbon content of 30%, the potential for carbon absorption through the cultivation of Kappaphycus alvarezii and Gracilaria sp. is estimated at 2.49 tons C/ha/year and 1.8 tons C/ha/year. The investment cost of reducing emissions by cultivating macroalgae ranges from Rp. 2.5-3.0 million/ton CO2/year. This value is relatively lower than the estimated average cost of reducing emissions using macroalgae in Indonesia and the Philippines, which is about Rp.7.6 million/ton CO2/year. This study provides a preliminary estimate of the investment cost and capacity of macroalgae farming-based carbon removal that can be considered in future carbon financing.
