Transforming coastal challenges into sustainable energy solutions for the whole world. We generate biogas and biochar from sargassum with our patented solution, restoring the health of communities, of the ocean, of land, and recovering tourism, community life, and CO2 from the atmosphere.
The Problem: What specific problem are you seeking to solve? *
The project addresses the severe environmental, economic, and public health problem caused by the massive accumulation of sargassum on the coasts of the Caribbean and Mexico.This seaweed negatively impacts vulnerable communities that depend on tourism and fishing, key sectors in the local economy. Decomposing sargassum releases toxic gases like H2S and leachates such as Arsenic and Mercury, contaminating water and soil, affecting public health, and degrading ecosystems. Additionally, sargassum poses a significant economic threat, causing losses in the tourism sector and high cleanup costs. It is estimated that at least in Quintana Roo, sargassum caused an economic loss of 11% of the state GDP in 2018, which is 2500 million dollars. The problem is exacerbated by the lack of sustainable solutions for sargassum management. Our project focuses on mitigating these impacts by providing an innovative solution that not only addresses the environmental problem but also generates economic and social benefits for the affected communities.
The Solution: What is the solution and why is it innovative? What is the disruptive/cutting-edge technology? *
Our solution is a patented process that converts sargassum into biogas and additionally stabilizes the resulting biosolids through pyrolysis to produce biochar, a product with the ability to capture additional carbon. We have invested in a highly innovative approach that not only transforms an environmental problem into a renewable energy source but also contributes to climate change mitigation and a circular economy. The bioreactor developed by Kauil Energéticos optimizes biogas production, achieving a methane purity of 98% after purification. From 150 ton/day of sargassum we produce about 10,000 m3 of very pure biogas, and 45 tons of biochar per day. The biochar produced through pyrolysis will be used as a soil amendment, promoting further CO2 capture and improving soil quality. The innovation of our solution lies in the integration of these advanced technologies into an efficient and scalable process, designed to be replicable in different areas/countries with sargassum problems. Kauil Energéticos, with its patent MX414858, leads this effort with a strong commitment to ESG principles, ensuring that the project is implemented ethically, responsibly, and sustainably. Additionally, part of the funds requested from the IDB will be allocated to the technical training necessary to obtain certification for carbon credit issuance, which will strengthen the financial viability and sustainability of the project. This comprehensive approach not only addresses immediate challenges but also positions the company and the communities involved as leaders in the transition to a technologically advanced, greener economy committed to community development.
How: Explain how the model works, step by step. *
The model follows a structured process to convert sargassum into biogas and biochar. First, the sargassum is collected and washed to remove impurities. It is then shredded and subjected to hydrolysis with cellulolytic enzymes to break down the biomass. This hydrolyzed biomass is mixed with an activated liquor derived from nopal cactus fermentation, which enhances the efficiency of the anaerobic digestion process in the bioreactor. The biogas produced is purified through a series of stages that include the reduction of CO2 and H2S, resulting in high-purity biogas that can be used as fuel. The solid residues from this process are subjected to pyrolysis, producing biochar, which is used as a soil amendment and for additional CO2 capture. This model not only generates clean energy but also captures carbon, contributing to the fight against climate change. Additionally, an educational component is included to train local communities in the operation and maintenance of bioreactors as well as in the production and use of biochar. This ensures that technical knowledge remains within the communities, promoting self-sufficiency and economic development. The implementation of the model is supported by the experience and technical capabilities of Kauil Energéticos, ensuring a high level of efficiency, feasibility, and sustainability. For more technical details refer to the patent document uploaded.
What are the deliverables to be achieved? *
The main deliverables include the construction of an advanced bioreactor capable of processing sargassum and producing high-quality biogas and biochar which are products to sell or to use within the community and local industry. Additionally, a technical training program will be conducted for local communities, focusing on the operation of the bioreactor, biochar production, and obtaining certifications for carbon credit issuance. Other deliverables may include the creation of a logistics chain for sargassum collection and transportation if the community requires it, as well as the formalization of agreements with local authorities to facilitate the project’s implementation. Detailed reports on the environmental and economic impact will also be generated, demonstrating the reduction of CO2 emissions and the improvement of soil quality through the use of biochar.
What is the impact expected? *
The expected impact includes a significant reduction in greenhouse gas emissions (about 68 thousand tons of C02 prevented from being emitted and 15 thousand tons captured per reactor unit) through the conversion of sargassum into biogas and the production of biochar, which additionally captures CO2. We expect to replicate this project in other areas in the future, as we calculate that to solve the problem in the Yucatan peninsula and the Caribbean, at least 21 reactors must be built. This project will improve the resilience of coastal ecosystems and contribute to soil restoration, promoting sustainable agricultural practices. Economically, it will create jobs and income opportunities for local communities, strengthening their economies and improving their quality of life. The project’s implementation will also establish a replicable model in other regions affected by sargassum, enhancing its environmental and social impact and promoting sustainable and equitable development.
Who is (are) the applicant(s) and what is (are) its (their) strengths? *
Kauil Energéticos S.A. de C.V. is a leading company in the development of sustainable technologies, with several patents in biogas, including the recent patent MX414858 for biogas production from sargassum, MX377331 for the production of biogas from avocado debris and MX374250 for the production of biogas from nopal cactus. The last 2 patents have been implemented in real life in Michoacan state since , both for avocado and nopal cactus, with a yield of between 10 to 22 thousand cubic meters of biogas per day.
Our experience in biotechnology and anaerobic fermentation processes allows us to offer innovative and highly efficient solutions. We have an experienced technical team committed to sustainability and social responsibility, positioning us as a key player in the transition to a greener economy. The company has been investing financially and technically to ensure the success of this process with sargassum. Additionally, our commitment to ESG principles ensures that all our operations are conducted ethically and sustainably, creating value for communities and the environment. These strengths enable us to lead the implementation of projects that have a positive long-term impact.
Target population description *
The target population includes coastal communities in Mexico and the Caribbean, which are particularly vulnerable to the sargassum crisis. These communities depend on tourism and fishing, sectors severely affected by sargassum accumulation. The project will provide them with technical training, employment opportunities, and the possibility to participate in the formal economy through the operation of bioreactors and biochar production. Additionally, gender equality will be promoted, ensuring that women have equal access to the opportunities generated by the project. The use of biochar will improve soil quality in the affected regions, contributing to the climate resilience of the communities. This inclusive and sustainable approach not only improves the economic conditions of the target population but also strengthens their capacity to face future environmental challenges.
What is the growth potential and financial sustainability? *
The project has high growth potential due to the ongoing demand for sustainable solutions for sargassum management and renewable energy production. The developed technology is replicable and scalable, allowing its implementation in other affected regions. We have talked to people from Barbados, Honduras and USA to share experiences and to try to cooperate from a technical perspective but we consider that a multinational social perspective need to be further developed. From a financial perspective, the revenue generated from the sale of biogas, biochar, and carbon credits will ensure the long-term economic sustainability of the project, as the worst-case scenario would still see a return on investment within a maximum of 5 months once carbon credit payments are received. Kauil Energéticos’ ability to reinvest in the project’s expansion guarantees sustained growth and increased market penetration. Additionally, diversification into the use of other biomasses, along with technical training for carbon credit certification, will further strengthen financial viability. Even without the sale of carbon credits, the project would remain financially sustainable thanks to the support of the Inter-American Development Bank through Non-Reimbursable Technical Cooperation (NTC) and Non-Reimbursable Financing (NRF) schemes.
What are the likely paths to scale during and after the proposed project, and with whom? *
The project has clear scalability potential both regionally and internationally, as we have mentioned in the previous question. During the implementation phase, we plan to establish strategic alliances with local governments, environmental agencies, and international organizations that can support the expansion of the model to other regions affected by sargassum, such as the Caribbean and Latin America. Additionally, the developed technology is adaptable to other biomasses, facilitating its replication in different contexts. The technical training provided to local communities and other key actors will strengthen the capacity to operate and maintain bioreactors, facilitating their adoption in new areas. After the initial phase, we will explore regional cooperation networks and/or sustainability investment funds that can finance the project’s expansion. As we have calculated, a minimum of 21 reactors could seriously reduce the impacts sargassum has brought such as public health problems, loss of tourism affluence, economic losses, etc. The project’s success in Mexico will serve as a reference model, demonstrating its viability and attracting the interest of international partners to replicate and scale the technology in other countries.
What are the main risks and their mitigating factors? *
The main risks include variability in sargassum availability, technical challenges in technology implementation, and possible resistance from local communities. To mitigate these risks, we have designed the project to be flexible and adaptable, allowing the use of other biomasses when sargassum is scarce. Technically, our team of biotechnology experts will oversee all stages of implementation to ensure the project’s success. Additionally, the pyrolysis of biosolids to produce biochar not only ensures carbon stability but also enhances economic viability through additional CO2 capture. Part of the IDB funds will be allocated to the technical training of communities, ensuring we obtain the necessary certifications for carbon credit issuance, which will reinforce the project’s financial sustainability and increase local acceptance.
| Total Project Budget | $510,000 USD |
| Funding request | $255,000 USD |
| Counterpart Funding | $255,000 USD |
| Type of financial instrument | Non-Reimbursable Investment Grant (NRIG) |