Why Ocean Sciences (ASX:OSS) Signed a Seaweed Value Chain MOU With the Australia-Indonesia Centre

Sonal Goyal

20 October 2026 01:25 PM AEDT

Why Ocean Sciences (ASX:OSS) Signed a Seaweed Value Chain MOU With the Australia-Indonesia Centre

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Key Highlights

Ocean Sciences has executed a non-binding MOU with the Australia-Indonesia Centre.
The framework targets value-added seaweed products produced in Indonesia for potential supply to Australia.
The MOU runs for 12 months and does not oblige either party to fund a pilot or any commercial activity.
The company states the MOU provides no immediate revenue and that any commercial outcome requires further agreement.

Ocean Sciences Ltd (ASX:OSS) announced on 20 October 2026 that it has executed a non-binding memorandum of understanding with the Australia-Indonesia Centre (AIC) to establish a framework for an Indonesia-Australia Seaweed Value Chain Partnership. The initial focus is on value-added seaweed products produced in Indonesia for potential supply to the Australian market.

About the Australia-Indonesia Centre

The AIC is a bilateral collaborative research initiative established by the Australian and Indonesian governments together with universities and industry. Its stated mission is to strengthen links between the two countries across science, technology, education, innovation and culture. It is an unincorporated initiative hosted and legally administered by Monash University. The centre has an established presence in Sulawesi through its Partnership for Australia-Indonesia Research program with Universitas Hasanuddin, and its work has included research on the South Sulawesi seaweed industry, its value chains and ways to increase local processing and value creation.

Existing relationship

The MOU formalises a working relationship that was already active. Before the agreement was signed, the AIC had introduced Ocean Sciences to potential business opportunities and prospective commercial partners. Those introductions are being assessed separately by the company, and the release presents them as an example of the practical role the AIC can play in supporting Ocean Sciences' seaweed production, product development and commercialisation strategy.

Areas of collaboration

Under the MOU the parties intend to explore collaborative research projects in areas of mutual interest, including those that support the development, application and commercialisation of seaweed-based products and technologies. They also intend to explore direct supply chains for value-added seaweed products between Indonesia and Australia, processing, quality-control and traceability capabilities in South Sulawesi, connections between seaweed producers and higher-value markets, Australian offtake and commercial partners, and the commercialisation of relevant research outcomes.

Fit with company operations

Ocean Sciences states that the relationship complements its Indonesian seaweed trading operations and its planned Seaweed Innovation and Application Centre. It also supports the company's strategy of developing and commercialising higher-value seaweed products for markets in Indonesia, China, the broader ASEAN region and Australia.

Key terms

The MOU has a term of 12 months from execution unless the parties extend it in writing. It is non-binding except for provisions on confidentiality, intellectual property and public announcements. It contemplates a potential pilot program to assess the partnership and its commercial viability. Any pilot, funding commitment, supply arrangement, offtake agreement or other commercial project would require a further agreement between the relevant parties. The company states that the MOU does not currently create a binding obligation on either party to fund or proceed with a pilot, does not provide for immediate revenue, and gives no certainty that a binding commercial agreement will follow.

Practical scope of the partnership

The release says the initial work is intended to combine Ocean Sciences' Indonesian seaweed operations and commercial capabilities with the AIC's research, government, university and industry networks. The aim is to pursue value-added supply chains rather than raw commodity trade, with processing and quality control located in South Sulawesi. The company said it will update the market as the arrangement develops and as any pilot, supply or offtake arrangement is agreed.

Summary of the agreement

The release records a non-binding, 12-month framework between Ocean Sciences and the AIC covering research, supply chain and processing topics, with commercial terms and funding left to future agreements.

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