Riding the Blue Wave: How Los Angeles is Building a Trillion-Dollar Ocean Economy

L.A.’s unique access to new and innovative opportunities driven by the ocean economy

In addition to over one million workers for whom the shoreline and coastal waters are a source of economic opportunity, California’s 26 million coastal residents also depend on the shoreline in some form or fashion. In the face of growing threats, such as climate change, Los Angeles, with its massive ports and access to the Pacific, has been working to capitalize on the region’s unique position to create and employ innovative ways to boost the economy while protecting our most prized resource: the ocean.

Estimates indicate that the value of the blue economy will double over the next decade, with a projected global value of $3 trillion by 2030.

Across the world, municipal and national entities are investing in the sustainable development of their blue economies and reaping significant economic and ecological rewards. Tangible opportunities exist for California and Los Angeles County to follow in their footsteps.

According to economists and analysts, there is significant promise within the blue economy, not only for next-generation jobs in tourism and marine transportation – which make up the majority of the current blue economy – but also in new industries with perceptibly high job growth potential.

Some of these new industries could provide avenues to sustain and grow our livelihoods while addressing the serious issues of climate change, pollution and overfishing, and meeting renewable energy and cutting-edge biotechnology innovations.

The Blue Promise

Ocean economy activities, also known as the blue economy, in L.A. County are poised to grow exponentially as the heightened awareness of the risks posed by climate change, pollution and aquatic ecosystem degradation is driving increased attention to, and investment in, more sustainable ocean-based industries, but industry and education leaders have to focus on workforce development and closing curriculum gaps in order to take full advantage of that growth said a report, “The Blue Economy in Los Angeles County: Charting A Course Forward,” authored by the Los Angeles Economic Development Corporation (LAEDC) and Blue Economy & Climate Action Pathways (BECAP).

The report, issued this year, reported that in 2021 (the most recent year available) the ocean economy in L.A. County provided 105,074 jobs across 3,896 establishments and contributed over $14 billion to county real GDP. By estimates, that number has grown (and continues to grow) exponentially.

“By recognizing the significance of the blue economy, we continue to harness our greatest assets: our ocean and untapped talent,” said Terry Tamminen, the president/CEO of AltaSea at the Port of Los Angeles and former CalEPA secretary. “The Los Angeles Economic Development Corporation/BECAP report reinforces what we are working every day on at AltaSea – ocean-based industries that have the potential to outperform the growth of the global economy as a whole, both in terms of value added and employment.

To power these new jobs, it is incumbent upon us to address existing curriculum gaps and provide Southern California students with sector-specific knowledge and skills training demanded by the innovative blue economy employers that will drive this economy in the coming decades. Measuring and reporting on the blue economy by the LAEDC provides us a valuable roadmap and tool to accomplish greater job creation in Los Angeles and beyond.”

LAEDC’s research on the blue economy done in collaboration with AltaSea at the Port of Los Angeles highlights efforts by organizations like AltaSea to take advantage of this burgeoning blue economy by setting the groundwork for new and innovative learning opportunities, workforce development and new curriculum to make sure students have all the tools and resources necessary to succeed in the blue economy.

Los Angeles’ emerging yet rapidly growing blue economy benefits from unparalleled regional assets, including the largest port complex in the Western Hemisphere, home to AltaSea at the Port of Los Angeles – a unique 35-acre public-private ocean institute that brings together the best and brightest pioneers and organizations in science, business and education.

The region also benefits from a variety of new educational programs, including the Los Angeles County Office of Education’s new Marine Science Floating Laboratory where students participate in hands-on, marine-science learning, including water visibility testing and studying bottom sediment and fish morphology.

In addition, new high school programs, such as the career technical education program at Port of Los Angeles High School, are generating interest in marine issues, while Santa Monica College’s Aquaculture certificate program represents the first explicitly blue economy-related community college-level program in the region.

“The ocean is our future. L.A. must lead,” said Stephen Cheung, president & CEO of the Los Angeles County Economic Development Corporation (LAEDC). “Los Angeles must be at the forefront, pioneering innovation and leadership in the blue economy and climate action pathways. Together, we can harness the ocean’s potential responsibly and ensure a sustainable future for all.”

The LAEDC report urges industry, government and education leaders to provide a larger range of blue economy workforce development programming, centering efforts in workforce development and deepening partnerships among educational institutions and with government and industry partners.

To that end, the BECAP Consortium, an alliance of 15 Los Angeles community colleges, AltaSea and the LAEDC, is developing a novel workforce training and placement program to prepare students for the next generation of ocean economy occupations, including post-secondary certificate and degree programs in blue economy industries, like renewable energy and wave energy technologies.

“The sustainable use and careful stewardship of the ocean will allow us to tackle the planet’s greatest challenges of food security, clean energy and climate resiliency, but the success of our region – both environmentally and economically – depends on how we invest in education and workforce development in this emerging blue economy,” said Los Angeles City Councilmember Tim McOsker, who represents the Fifteenth Council District, which includes AltaSea. “We must continue to ensure that Los Angeles leads the way in education, innovation and job creation to expand the sustainable use of the ocean to improve lives and sustain a healthy future for our planet.”

Prior to being elected to the Los Angeles City Council, McOsker was president/CEO of AltaSea when the first LAEDC report on the blue economy was released.

“Los Angeles County’s ocean economy will continue to develop to meet new economic and policy demands,” the LAEDC report concluded. “However, the emergence of more sustainable marine industries will depend in part on the workforce development ecosystem’s ability to collaborate and build educational and experiential pathways for all Angelenos who wish to participate in the blue economy.”

Innovative Companies and Organizations at the Forefront of the Blue Economy

Blue economy success stories can be found in multiple sectors, from technology to education to policy, pointing to the potential for significant growth in the next decade. Many organizations across these sectors are flourishing with Los Angeles as a base for their operations, bringing attention and resources to the region’s blue economy.

MARINE CARBON DIOXIDE REMOVAL (MCDR)

Los Angeles is home to the largest concentration of mCDR research, development and commercial operations in North America. The capture and sequestration of carbon has a growing footprint as a critical solution to reducing the impact of fossil fuel emissions; it can also produce “green hydrogen,” a clean fuel that is increasing in demand.

The mCDR university-associated organizations at AltaSea are scaling up their proprietary technologies, from the direct removal of carbon from the ocean by Equatic (UCLA School of Carbon Management) and Captura (Caltech) to the sustainable permanent storage of carbon in the ocean by Calcarea (Caltech). Their investments in this commercial translation of innovative technologies are designed to lead to economic and job growth in the region.

ROBOTICS AND MATERIALS

One company that is demonstrating the potential for scaling up jobs in the blue economy is Blue Robotics, an underwater robotics company that has grown over the last decade from two employees working out of a garage to over 60 employees working in 32,000 square feet of space at AltaSea.

Another AltaSea onsite partner that is growing fast is Sperra, which utilizes 3-D concrete printing for coastal resiliency – including fabrication of low-cost, durable, offshore wind, solar and wave energy components; 3-D printing of artificial reefs and coastal infrastructure; and anchors for aquaculture and other applications. The company will be expanding operations and staff soon to manufacture its products at a larger scale.

REGENERATIVE AQUACULTURE

Regenerative aquaculture is projected to grow significantly to address food insecurity, create biofuels and other products, restore ecosystems, sequester carbon and stimulate economic growth in California. Organizations in Los Angeles and Southern California are helping drive this effort.

San Pedro-based Holdfast produces California-native seaweed and shellfish seeds for purchase by seaweed farmers and also develops novel aquaculture techniques for mussels to optimize taste. Kelp Ark and the USC Seaweed Lab on the AltaSea Campus are staging breeding programs to enable sustainable and highly efficient offshore aquafarming for the entire West Coast.

They are leading a community of practice of over 40 researchers and companies focused on aquaculture farming, including Ocean Rainforest, an innovator in sustainable seaweed aquaculture that recently secured a $4.5-million “Technology to Market Plus Up” award from ARPA-E. The efforts of these organizations and more mark the regional commitment to advancing offshore aquaculture technologies in California.

RENEWABLE MARINE ENERGY

A variety of technologies to produce renewable energy using marine resources is available and increasing in regional commercial applications. Eco Wave Power, for example, is a global leader in onshore wave energy that is in the process of establishing an operation in Los Angeles.

The company developed a patented, cost-efficient technology for turning ocean and sea waves into renewable electricity and recently secured the final federal permit for its newest pilot at AltaSea, with installation scheduled for 2025. Eco Wave Power has a total project pipeline of 404.7 MW and has received the “Global Climate Action Award” from the United Nations.