International Start-up Gigablue Pressures New Zealand Government for Regulatory Shifts to Enable Massive Marine Carbon Sequestration

Start-up Gigablue lobbies New Zealand to allow controversial marine carbon storage. Experts warn of environmental risks and lack of scientific evidence.

By: AXL Media

Published: Apr 1, 2026, 11:40 AM EDT

Source: Information for this report was sourced from RNZ

Lobbying for a Permitted Activity Status

International start-up Gigablue has initiated high-level discussions with New Zealand’s Ministry for the Environment, proposing significant changes to the nation’s Exclusive Economic Zone regulations. Documents obtained under the Official Information Act reveal that the company, co-founded by Israeli entrepreneurs, seeks to reclassify its carbon storage activities as a "permitted activity," which would allow operations to proceed without the standard resource consent process. Former climate change minister James Shaw has supported the company’s efforts, arguing that the severity of the climate crisis warrants the exploration of all scientific interventions, even those currently facing regulatory hurdles.

The Mechanics of Microalgae Carbon Fixation

The technology at the center of the controversy is known as Microalgae Carbon Fixation and Sinking. This process involves deploying proprietary particles into the ocean to stimulate the growth of phytoplankton, which absorb atmospheric carbon dioxide through photosynthesis. Unlike traditional ocean fertilization, Gigablue claims its method "embeds" nutrients within a substrate designed to sink rapidly to the deep ocean floor before the algae can decay. By moving carbon into slow-moving deep-sea currents, the company asserts the CO2 can be sequestered for centuries, effectively allowing the surface ocean to absorb additional greenhouse gases from the atmosphere.

Regulatory Friction and Dumping Allegations

The Environmental Protection Agency has expressed significant reservations regarding the scale of Gigablue's proposals. In late 2025, the agency blocked an application to deploy 1,000 tonnes of substrate off the Otago coast, concluding that the activity effectively amounted to "dumping," which is illegal under both New Zealand domestic law and the international London Protocol. Internal government notes show that some officials were skeptical of the company's environmental claims, with one adviser describing certain scientific assertions as "questionable." Although a heavily modified smaller trial involving just 55kg of material was eventually permitted this year, the tension between commercial speed and regulatory oversight remains high.