Introduction

Seaweed farming is emerging as one of Australia’s most promising aquaculture industries. Beyond providing food and fertiliser, seaweed is now being recognised for its role in reducing methane emissions, generating blue carbon credits, and supplying bio-based plastics. Investors and governments are paying attention — but with opportunity comes risk.

For operators, the challenge is clear: how to avoid legal risks in seaweed farming while building sustainable, profitable businesses.

Licensing and Leasing Issues

• Seaweed farms in Australia usually require leases of coastal or offshore waters under state aquaculture legislation.
• Approvals can be complex, involving marine estate management, navigation safety, and environmental assessments.
• Overlapping authorities (state departments, local councils, port authorities) often complicate approvals.

Legal risks:

• Failing to obtain the correct lease or permit may result in shutdowns and fines.
• Lease conditions may restrict expansion, gear types, or farm structures.

Environmental Regulation

Seaweed is environmentally positive — but regulators still impose strict controls.

• Projects may require approval under the Environment Protection and Biodiversity Conservation Act (EPBC Act) if they impact listed species or habitats.
• Marine parks and conservation zones may restrict farming locations.
• Biosecurity regulations govern the introduction of new seaweed strains.

Legal risks:

• Breach of environmental laws can trigger heavy penalties and reputational damage.
• Unauthorised species introduction risks liability under biosecurity laws.

Intellectual Property and Innovation

Seaweed farming is innovation-driven. New cultivation methods, seed strains, and processing technologies are valuable assets.

• Cultivation systems (e.g., offshore rigs, automated harvesting) can be patented.
• Breeding programs for high-yield or methane-reducing strains may attract plant breeder’s rights.
• Licensing agreements must cover IP ownership and revenue sharing.

Legal risks:

• Failing to secure IP protection allows competitors to copy innovations.
• Joint ventures can lead to disputes if IP ownership is unclear.

Contracts and Investors

With growing interest from ESG-focused investors, clear contracts are essential.

• Shareholder agreements must cover ESG obligations and exit rights.
• Supply contracts with buyers must align with sustainability claims.
• Carbon credit contracts must define ownership of offsets and verification methods.

Legal risks:

• Greenwashing claims if marketing overstates carbon benefits.
• Investor disputes if ESG performance is not documented contractually.

International Trade Issues

Seaweed products are often exported for food, pharmaceuticals, or carbon projects.

• Labelling must comply with both Australian and destination country standards.
• Export permits are required for certain high-value or biosecurity-sensitive species.

Legal risks:

• Seizures at border if labelling or biosecurity standards are not met.
• Breach of foreign ESG reporting laws if sustainability claims are exaggerated.

Conclusion

Seaweed farming offers immense opportunity, but legal risks span leases, environment, IP, contracts, and exports. Operators should:

• Secure all relevant licences and leases.
• Comply with environmental and biosecurity laws.
• Protect innovations through IP rights.
• Document ESG obligations in contracts.
• Anticipate export and trade compliance issues.

Aquarius Lawyers advises clients on every stage of seaweed farming ventures, from leases to contracts to carbon credits.