First commercial Spinosum sale opens a new carrageenan market for Ocean Sciences (ASX: OSS)
Ocean Sciences Ltd (ASX: OSS) has announced that its Indonesian operating subsidiary, PT BPH Global Indonesia, has secured its first commercial sale of Eucheuma spinosum (Spinosum) seaweed. The sale expands the company’s seaweed trading operations beyond Cottonii.
The purchase order comes from an existing Chinese customer, Greenwich (China) Technology Development Limited, so the sale is repeat business rather than a new relationship. It covers 25 metric tonnes of Indonesian Spinosum seaweed.
Key facts from the announcement:
- Customer: Greenwich (China) Technology Development Limited, an existing Chinese customer
- Volume: 25 metric tonnes of Indonesian Spinosum seaweed
- Destination port: Xiamen Port, China
- Status: Shipment has arrived. Delivery to the customer remains subject to customs inspection and clearance
The announcement does not disclose the revenue value, pricing or margin of the order.
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Why Spinosum matters: iota-carrageenan versus kappa-carrageenan
Carrageenan explained
Carrageenan is an ingredient derived from seaweed. Cottonii and Spinosum are the two principal commercially cultivated carrageenan-producing seaweed species, together accounting for approximately 90% of the seaweed used in global carrageenan production.
Cottonii (Kappaphycus alvarezii) is primarily used in the production of kappa-carrageenan. Spinosum is the principal raw material used in the production of iota-carrageenan.
Iota-carrageenan is a distinct form of carrageenan used in dairy desserts, plant-based food products, personal care products and pharmaceuticals.
| Seaweed | Carrageenan type | Role for OSS |
|---|---|---|
| Cottonii (Kappaphycus alvarezii) | Kappa-carrageenan | Existing trading focus |
| Spinosum (Eucheuma spinosum) | Iota-carrageenan | First commercial sale |
What it means for investors
Spinosum gives Ocean Sciences access to the iota-carrageenan market, a segment distinct from the kappa-carrageenan market supplied by Cottonii. According to the company, the expansion broadens its product offering, addressable customer base and commercial growth opportunities.
The milestone relates specifically to the first commercial sale of Spinosum. Further orders are not disclosed in the announcement.
Leveraging existing infrastructure and the growth strategy
By adding Spinosum to its trading activities, Ocean Sciences is positioning itself to service a broader range of customers across the global carrageenan industry. It plans to do so by leveraging its established Indonesian seaweed procurement network, quality control processes and export infrastructure.
Matthew Leonard, Managing Director, Ocean Sciences Ltd
“…the addition of Spinosum enables us to participate in a separate and significant segment of the global carrageenan market. We believe that broadening our product offering will create further opportunities to expand our customer base, increase trading volumes and strengthen our position as a supplier of Indonesian seaweed to international markets.”
The company will continue to pursue opportunities to expand its trading activities across both Cottonii and Spinosum, as part of its broader strategy to develop a diversified and scalable international seaweed business.
Management identified three growth levers:
- Expanding the customer base
- Increasing trading volumes
- Strengthening its position as a supplier of Indonesian seaweed to international markets
The announcement does not provide timelines or volume forecasts.
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