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  6.  | Kodiak Tribe Receives $2.3 Million to Boost Kelp Processing

Kodiak Tribe Receives $2.3 Million to Boost Kelp Processing

Sep 12, 2025 | Agriculture, Alaska Native, Fisheries, Manufacturing, News

MANUFACTURING Sun'aq mariculture 4

The Sun’aq Tribe of Kodiak plans to use grant funding to build a centralized, tribally managed processing facility that caters to the needs of Kodiak’s kelp producers.

Photo Credit: Sun’aq Tribe of Kodiak

A $2.3 million grant from Alaska Mariculture Cluster (AMC), a coalition led by the Southeast Conference, will help the Sun’aq Tribe of Kodiak develop a processing facility for Kodiak kelp producers. Known as the Kelp Primary Processing Platform (KP3), the facility is expected to be operational next year.

The Sun’aq Tribe of Kodiak says the grant will help it expand Kodiak’s mariculture industry, creating jobs and supporting tribal citizens, kelp farmers in the Kodiak Archipelago, and the regional economy.

Promoting Kelp Processing

“Receiving this grant is a major milestone for our community,” says Sun’aq Tribal Administrator Jeannine “JJ” Marsh. “It empowers us to help grow Kodiak’s mariculture industry for future generations.”

Shauna Hegna, president of Koniag regional corporation, adds, “This grant represents a vital investment in Kodiak’s economic future. It will help diversify the local economy, create jobs, and reinforce the region’s position as a leader in Alaska’s mariculture industry.”

A centralized, tribally managed facility, KP3 is envisioned as a shared regional asset that will benefit tribal citizens and independent farmers with support from community-based organizations.

“Leadership rooted in community and culture is essential to the success of projects like this,” says Robbie Townsend Vennel, Kodiak Archipelago Leadership Institute’s executive director. “We celebrate the Sun’aq Tribe’s vision and dedication to helping to build a sustainable mariculture industry in our region.”

Melissa Schoenwether, executive director of the Kodiak Economic Development Corporation, adds, “We look forward to working with the Sun’aq Tribe as this project helps lay the groundwork for a sustainable mariculture economy in Kodiak. By pairing new equipment with long-range planning and facility development, we can expand production, create jobs, and strengthen our community’s future.”

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The Sun’aq grant is one of six that AMC awarded in the second round of funding through its Mariculture Equipment Program, which aims to invest in strategic equipment upgrades to support hatchery, nursery, and processing capacity. The program is allocating more than $7.2 million for equipment and $378,000 for supplies over three competitive funding rounds. The third round of requests for proposals closes October 13, 2025. 

The funding comes at a critical time as Alaska’s mariculture industry continues to grow against the constraint of local processing limitations, especially in Kodiak Island communities. National and global leaders in mariculture are also voicing support for the project. 

“We are excited to collaborate with the Sun’aq Tribe, kelp growers, the local community, and industry partners on this project. KP3 will help pioneer a scalable model for local kelp processing,” says Matthew Perkins, founder and CEO of Macro Oceans, a California-based leader in innovative kelp products.

GreenWave, a nonprofit working to replicate and scale regenerative ocean farming, also praises the initiative. “The Sun’aq Tribe’s commitment to delivering value to diverse local stakeholders and emerging markets is exactly the kind of leadership needed to grow a resilient blue economy,” says Samantha Garwin, GreenWave’s director of market development.

The tribe plans to begin equipment procurement this year with the goal of operating in 2026.

Kelp Nurseries, Augers, and Oysters

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Efforts to develop a scalable model for local kelp processing would help coastal communities grow the blue economy.

Photo Credit: Sun’aq Tribe of Kodiak

In addition to the $2.3 million for kelp production equipment, AMC funded three projects that will assist kelp production elsewhere in Alaska and two more that will boost oyster farming on Prince of Wales Island. 

The second-largest grant, $300,000 went to The Nature Conservancy to deploy a containerized kelp nursery in Metlakatla and microscopes for quality control throughout its nursery network. According to AMC, this builds on the success of the Cordova-based Community Kelp Seed Nursery and supports the Conservancy’s vision for a distributed, Native-led mariculture infrastructure model across Alaska. 

Chugach Regional Resources Commission in Seward, a tribal consortium on the Kenai Peninsula, received $70,000 to upgrade kelp seed production infrastructure at its Alutiiq Pride Marine Institute. The funds will support a kelp nursery filtration system and a new heat pump. AMC says the improvements are vital to improving seed consistency and regional nursery capacity.

Kenai Peninsula Economic Development District in Homer received $49,380 to purchase a screw press and auger conveyor for Kachemak Innovation Kelp Hub, which operates out of the Salmon Sisters facility on the Homer Spit. The equipment will increase throughput, improve quality, and enable production of value-added products such as biostimulants to benefit regional seaweed farms.

OceansAlaska received $186,800 to help develop the Alaska Oyster Cooperative’s centralized oyster processing hub in Naukati Bay on Prince of Wales Island. With the funding, OceansAlaska will buy an oyster grader, ice machine, and conveyors. The new equipment will reduce processing costs, improve quality assurance, and help small farms efficiently meet growing demand while creating local jobs and expanding value-added production.

Quality and Capacity

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The Kelp Primary Processing Platform Sun’aq Tribe of Kodiak plans to build is designed to produce five products: dried whole leaf kelp, chopped kelp, plant biostimulants, liquid kelp bioactive extracts, and dried kelp pulp residue.

Photo Credit: Sun’aq Tribe of Kodiak

The final award went to Central Council of the Tlingit & Haida Indian Tribes of Alaska in Klawock. Its $49,684 grant will allow a new, 20-foot, refrigerated connex to be installed at Klawock Airport to strengthen the Prince of Wales Island oyster supply chain. The unit will fill a critical gap in efficiently and safely staging and shipping live shellfish, especially in the face of weather delays and other last-minute shipping challenges. The project is a partnership between Tlingit & Haida and Alaska Seaplanes. It has support from various stakeholders and oyster farmers and is expected to improve the quality of oysters delivered to distant markets.

Southeast Conference, the federally designated Economic Development District for the Panhandle region, was awarded $49 million from the US Economic Development Administration through a Build Back Better Regional Challenge grant to catalyze a viable and sustainable mariculture industry in Alaska.

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