How Portugal’s ocean miles are creating a ‘Blue Economy’

For centuries the Atlantic was Portugal’s route to its trading empire. Today, it is a different type of economic highway and engine for growth.

Stretching nearly 1,800 kilometres along Europe’s western edge and extending far into the Atlantic through the archipelagos of the Azores and Madeira, Portugal controls the third largest maritime area in the European Union.

Officially known as an Exclusive Economic Zone, it gives Portugal special rights over the exploration and use of marine resources within its vast 1,727,408 square kilometre-expanse.

That geographic reach underpins an emerging economic strategy, to create a modern ‘blue economy’ built on aquaculture, seaweed cultivation, marine biotechnology and ecosystem restoration.

It already has clout: global strategy consultants at Ken Research Valuation valued the Portugal Ocean Economy and Blue Tech Market at USD 7.5 billion in October 2025.

It highlights a substantial investment opportunity offered by Portugal’s maritime territory, growing clean energy markets and increasing public funding to boost ocean-based industries.

“The ocean is part of our past and future,” said Portugal’s then Minister of Economy and Maritime Affairs António Costa Silva at the March 2023 launch of Growth Blue I – funded with €28 million from Portugal itself and the EU’s European Investment Fund (EIF).

Another government and EU funding initiative, Portugal Blue aims to mobilise a further €75 million of private, public and European capital to foster the Portuguese blue economy through early-stage, venture, and growth capital to over 30 start-ups, SMEs and medium capitalisation companies.

The target sectors for these funds are:

• sustainable seafood

• marine biotechnology

• offshore energy

• ocean restoration

Turning the Atlantic into a food system

Portugal is already one of Europe’s biggest seafood consumers per head of population yet still imports much of what it eats, so its government aims to both reduce that dependency and create export industries by investing hundreds of millions of euros.

The key focus is offshore aquaculture and seaweed cultivation along Portugal’s Atlantic coast and around its islands.

The Azores and Madeira offer ideal conditions: deep, clean waters, strong nutrient flows and large marine areas suitable for farming.

“Portugal’s positioning today is inseparable from the affirmation of the blue economy,” said Paulo Águas, Rector of the University of the Algarve. “It embodies the sustainable enhancement of the ocean as a driver of economic growth and innovation.”

Seaweed, especially kelp, is a cornerstone here as one of the world’s fastest-growing food and biomaterials sectors, supplying plant-based foods, animal feed, pharmaceuticals, cosmetics and biodegradable packaging.

Restoring underwater forests—and monetising them

But seaweed is not just about food, as marine ‘forests’ created by vast underwater ecosystems formed by kelp and other algae are now recognised as critical climate infrastructure.

They absorb carbon dioxide, provide habitat for marine life and improve coastal resilience.

And Portugal is becoming a testbed for restoring these ecosystems at scale, with one of the most visible examples being SeaForester, a Cascais-based company developing techniques to grow kelp seeds onto stones in seawater tanks, later scattering the stones at sea to quickly establish and expand kelp forests on a grand scale.

The company recently raised €1.6 million from organisations including WWF and Schmidt Marine Technology Partners and is planning further capital raises as it expands internationally.

Its work is founded on evidence that restored kelp forests can function as ‘carbon banks’ to capture and store carbon while generating biodiversity and fisheries benefits.

If robust verification systems can be established, these ecosystems could generate tradable carbon or biodiversity credits.

Islands as ocean innovation laboratories

Portugal’s Blue Economy strategists also see a key role for the nation’s Atlantic islands. The Azores, for instance, are around 1,500 kilometres from the mainland, surrounded by deep ocean waters ideal as laboratories for testing offshore aquaculture, ocean robotics and marine restoration.

Azores President José Manuel Bolieiro says the islands give Portugal “an Atlantic projection that can make the country relevant again through the economy of the sea.”

The Future for Fisheries

Fishing is a long-established industry for Portugal, but like the country’s mature tourism sector, it is undergoing rejuvenation. Key initiatives include:

• Digital and Green Transition: integrating AI, blockchain, and data analytics to monitor fish health.

• Decarbonisation: subsidising engine replacement in older fishing vessels and investing in offshore wind and wave energy to power marine operations.

• Circular Economy: developing zero-waste ports and repurposing industrial byproducts, such as using microalgae waste for healthcare solutions or crab shells for new materials.

• Resource Management: enhancing public ocean awareness and involving local fishing communities, particularly women, in seagrass restoration and mapping.

Notable Projects include:

Coralis – a pioneering large-scale offshore fish farm 15km off the Algarve coast using semi-submersible platforms and AI to farm sea bass and sea bream.

Aquadiversify – a collaborative project in the Algarve introducing ‘multi-trophic’ aqua-farming methods where different species work together in a balanced ecosystem.

The investment case for the Blue Economy

For investors, the appeal lies in the scale and timing. Ocean industries, from sustainable seafood to marine carbon removal, are still relatively young, but their potential markets are huge.

Global demand for protein continues to rise, while climate targets are driving investment in nature-based solutions and carbon removal technologies. Portugal’s Atlantic geography offers a rare combination: vast ocean territory within a stable European regulatory framework.

The Portuguese ambition is to create an ecosystem where startups, universities and investors collaborate to rapidly scale technologies ranging from seaweed cultivation to offshore robotics.

This was acknowledged by Virginijus Sinkevičius, the European Commissioner for the Environment, Oceans and Fisheries (2019-24), who said: “Portugal has a very strong blue economy sector that keeps growing fast.”

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