IDB Lab, the innovation laboratory of the Inter-American Development Bank Group (IDB Group), in collaboration with the IDB and IDB Invest, and the U.S. Agency for International Development (USAID), hereby launch the Sargassum Innovation Quest. This initiative aims to find solutions that allow the potential of sargassum biomass to be harnessed and improve the resilience of coastal communities in Latin America and the Caribbean, through the use of advanced technologies and innovative practices.

Since 2011, the Caribbean coasts, Central America, and Mexico have faced a massive influx of pelagic sargassum from the equatorial Atlantic. These algae masses, carried by ocean currents, have invaded the Caribbean Sea, significantly impacting the region. This accumulation has disrupted tourism by covering beaches, complicated fishing activities, and incurred substantial cleanup costs, with estimates reaching $120 million in the Caribbean in 2018, according to the United States Environmental Protection Agency (EPA). Similarly, the study "The Economic Impact of Sargassum: Evidence from the Mexican Coast" by the Inter-American Development Bank, found that in Quintana Roo, Mexico, the economic impact includes a 17.5% reduction in nighttime light intensity (a proxy for economic activity), correlating to an 11.6% decrease in local gross product, with effects lasting up to 12 months.

The ecological consequences are severe, with sargassum decomposition contaminating habitats, blocking sunlight essential for photosynthesis in marine organisms, and affecting local fauna. This not only threatens marine biodiversity but also the livelihoods of communities dependent on these ecosystems. Additionally, public health is at risk due to harmful gases released by decomposing sargassum (Desrochers, Cox, Oxenford, and van Tussenbroek et al., 2019). Studies link the sargassum increase to climate change and oceanic eutrophication, suggesting the phenomenon will persist, necessitating innovative management strategies.

Efforts are underway to transform this environmental challenge into economic opportunities by developing sargassum-based industries. However, significant hurdles remain, including variable supply, limited chemical knowledge, and logistical and governance challenges. Addressing these issues is crucial for realizing sargassum's commercial potential. Entrepreneurs, SMEs, and research centers are pivotal in creating sargassum-derived products and implementing innovative technologies, which could boost employment and contribute to local economies, making the region more adaptable and resilient to future sargassum invasions.

The proposals for managing sargassum can cover a wide range of areas, from efficient collection to its transformation into valuable products. Below you may find the technologies and approaches that could be explored in more depth:

1. Sargassum Collection Systems: These include the use of floating barriers to contain sargassum, specialized vessels for its collection, and coastal management systems that minimize environmental impact during transport and final disposal of sargassum. These technologies aim to be efficient and environmentally responsible.
2. Pre-Treatment, Treatment, and Drying Technologies: Utilization of preferably renewable energies for efficient drying of sargassum, reducing its moisture content and facilitating further processing. This includes mechanical, chemical, or biological methods to prepare sargassum, such as cleaning and separating marine debris that may be mixed in.
3. Transformation and Valorization: Development of technologies that convert sargassum into biogas, bioethanol, or biodiesel through processes like anaerobic digestion, fermentation, or transesterification. It also includes technologies to create composite materials from sargassum usable in construction or to process sargassum into fertilizers, compost, or agricultural substrates, optimizing its nutritional value and safety. Other applications could include the extraction of bioactive compounds for use in industries such as chemical, cosmetic, pharmaceutical, textile, and footwear.
4. Monitoring and Analysis: Use of drones, satellites, and sensors for real-time monitoring of sargassum accumulations, facilitating rapid and efficient responses. Artificial intelligence and big data analysis also play a crucial role in predicting sargassum arrivals and optimizing collection and treatment operations.

5. Others: Other technologies aligned with the purpose and guidelines of the call, or a combination of the aforementioned technologies and approaches.

Startups with proven solutions seeking scaling, small and medium-sized enterprises (SMEs), corporations, academia and NGOs from any of the 48 member countries of the IDB are invited to participate in the challenge, as well as from one of the beneficiary countries of the Compete Caribbean program.

If your organization is legally registered in one of the targeted countries (Bahamas, Barbados, Belice, Guyana, Jamaica, Surinam, Trinidad and Tobago, Dominican Republic, Haiti, Honduras, Mexico, Antigua and Barbuda, Dominica, Granada, Saint Lucia, Saint Kitts and Nevis, and Saint Vincent and the Grenadines) where the project will be implemented, you can apply to the Challenge. 

If your organization is legally registered in one of the 48 members countries  of the IDB Group, other than one of the targeted countries where the project will be implemented, you may apply only in partnership with an organization registered and located in one of the targeted countries where the project will be implemented. 

To apply please complete the online application available on this site by clicking Submit Proposal, within the deadlines. 

Refer to the Guidelines for more detailed information.

After completing the application via submit proposal, the technical team will review, analyze, and pre-select applications. 

Phase I

After completing the application via the online platform, the technical team will review, analyze, and pre-select applications.

Phase II

Due diligence visits or interviews will be conducted to analyze the ability of the model of the pre-selected applications. Subject to the outcome of the due diligence, pre-selected applications will proceed to Phase III.

Phase III

IDB Lab will select applications according to the evaluation criteria established in Section 06 of the Guidelines. Selected applications will be announced as per the established timeline. Once the best way to implement the model has been assessed, IDB Lab will provide support to the selected Applicant(s) to initiate the design of the project (which includes developing a project plan and other documents necessary to request official internal IDB/IDB Lab approval). This process may last up to six months, depending on the maturity of the proposed model and the implementing capacity of the selected Applicants. 

*Note that final approval is subject to internal IDB/IDB Lab procedures with the understanding that for the project to be selected to receive financing, it must have been approved by all those directly involved in IDB/IDB Lab´s approval process. Likewise, a legal agreement must be signed which sets forth how the financing and the counterpart resources will be used to implement the model. 

Financing: IDB Lab may consider the applicants whose proposals are selected to receive financing to implement the proposed business model in one or various of the targeted countries. Awards may range between US$300,000 – US$600,000 for projects with a duration between 12-36 months. Proposals of smaller amounts could be considered for any of the Compete Caribbean countries.

IDB Lab Innovators Network: Selected applicants will be included among IDB Lab's network of global innovators working in LAC to exchange knowledge, experiences, best practices, and may have opportunities to participate in networking events organized by the IDB Group and its partners.

Selected applicants will receive funding once:

• The proposed business model has been duly analyzed and evidence obtained of its viability;    
• The applicant’s experience in the sector, capacity to manage financial resources and project execution experience have been evaluated and deemed sufficient;    
• Availability of or ability to mobilize counterpart resources has been demonstrated via evaluation of prior experiences; and,
• A legal written agreement defining terms of the implementation of the selected model/project has been signed by both parties (IDB/IDB Lab and applicant selected through the analysis process). 

*For more information, please visit the Guidelines.

Please send your questions to sargassumiq@iadb.org