Ocean Sciences signs MOU with Australia-Indonesia Centre for seaweed value chain
Ocean Sciences Ltd (ASX: OSS) has executed a non-binding Memorandum of Understanding (MOU) with the Australia-Indonesia Centre (AIC). The MOU establishes a framework for an Indonesia–Australia Seaweed Value Chain Partnership.
The initial focus is on value-added seaweed products produced in Indonesia for potential supply to the Australian market.
The MOU formalises an already active relationship. According to the company, the AIC had already introduced Ocean Sciences to potential business opportunities and prospective commercial partners, which the company is assessing separately.
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Who is the Australia-Indonesia Centre?
The AIC is a research and collaboration body, and its involvement gives Ocean Sciences a link to government, university and industry networks. Understanding who sits behind it helps explain why the MOU matters to the company’s seaweed strategy.
A bilateral research initiative
The AIC is a bilateral collaborative research initiative established by the governments of Australia and Indonesia, leading universities and industry. Its mission is to strengthen links between the two countries through science, technology, education, innovation and culture.
It is an unincorporated initiative hosted and legally administered by Monash University.
Established presence in Sulawesi
The AIC has an established presence in Sulawesi through the Partnership for Australia-Indonesia Research program, conducted with Universitas Hasanuddin. Its work has included research addressing the South Sulawesi seaweed industry, its value chains and opportunities to increase local processing and value creation.
The proposed partnership will combine Ocean Sciences’ Indonesian seaweed operations and commercial capabilities with the AIC’s research, government, university and industry networks.
What the partnership aims to deliver
The MOU complements the company’s Indonesian seaweed trading operations and planned Seaweed Innovation and Application Centre. It also supports its strategy of developing and commercialising higher-value seaweed products for markets in Indonesia, China, the broader ASEAN region and Australia.
The company’s development plan for the Takalar Seaweed Innovation Centre sets out a staged pathway from regulatory approvals through construction to commissioning at a 3.4-hectare South Sulawesi site, with expenditure aligned to approvals.
Under the MOU, the parties intend to explore opportunities across six areas:
- Collaborative research projects supporting the development, application and commercialisation of seaweed-based products and technologies
- Direct supply chains for value-added seaweed products between Indonesia and Australia
- Processing, quality-control and traceability capabilities in South Sulawesi
- Connecting seaweed producers with higher-value markets
- Identifying Australian offtake and commercial partners
- Assessing opportunities to commercialise relevant seaweed research outcomes
Taken together, the areas run from production and processing through to higher-value markets and offtake, consistent with the strategy described in the announcement.
Key MOU terms and what comes next
The table below summarises the key terms disclosed by the company.
| Term | Detail | What it means |
|---|---|---|
| Term | 12 months from execution, unless extended by written agreement | A defined window for the collaboration to progress |
| Status | Non-binding, except provisions on confidentiality, intellectual property and making public announcements | Commercial outcomes are not locked in |
| Pilot program | A potential pilot program to assess the partnership and its commercial viability is contemplated | A possible next step, not a commitment |
| Future arrangements | Any pilot, funding commitment, supply arrangement, offtake agreement or other commercial project will require further agreement | Each stage needs separate agreement between the relevant parties |
The MOU does not presently create a binding obligation on either party to fund or proceed with a pilot program or other commercial activity. It does not provide for immediate revenue to Ocean Sciences, and there is no certainty that any proposed opportunity will result in a binding commercial agreement.
This places the opportunity at an early stage. The company has said it will update the market if the collaboration results in a material binding agreement or other material development.
Investors may wish to watch for news on any pilot program and any binding agreements within the 12-month term.
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