- Details
- By Chez Oxendine
- Food | Agriculture
A $2.3 million federal investment is poised to reshape Kodiak’s mariculture landscape, with the Sun’aq Tribe of Kodiak leading efforts to expand kelp processing capacity and diversify product development at its tribally owned seafood facility.
The funding, awarded through the Southeast Conference’s Alaska Mariculture Cluster, will support equipment upgrades and facility improvements at Kodiak Island Wildsource, a small processing plant on the city’s Cannery Row that has processed halibut, cod and salmon for decades. The tribe added kelp to its lineup roughly five years ago and now aims to increase production to meet growing demand from local growers and emerging markets.
“This is a big chance for us, and we’re at the crossroads for our company,” said Chris Sannito, Wildsource’s plant manager. “We’re going to go for the mariculture processing and see what we can do with that.”
The Alaska Mariculture Cluster is a statewide initiative led by the Southeast Conference and funded through the U.S. Economic Development Administration’s Build Back Better Regional Challenge. The $49 million program supports hatcheries, nurseries, processors and workforce development efforts across Alaska. The program aims to build a sustainable, resilient mariculture economy rooted in local leadership.
For the Sun’aq Tribe, the funding is the next step in its long-term economic development strategy. Tribal leaders say the expansion will create jobs, support local kelp farmers and position Kodiak as a hub for sustainable mariculture.
“Receiving this grant is a major milestone for our community,” said Sun’aq Tribal Administrator Jeannine “JJ” Marsh. “It empowers us to help grow Kodiak’s mariculture industry for future generations.”
The centerpiece of the investment is the Kelp Primary Processing Platform (KP3), a centralized, tribally managed system designed to serve both tribal citizens and independent growers. The KP3 model includes new equipment — unloaders, choppers, grinders, agitation tanks, centrifuges, and dryers — that will allow Wildsource to process kelp into a range of finished products, including biopolymers, cosmetics and agricultural soil additives. These value-added products serve as one of the fastest-growing kelp markets globally. The U.S. kelp market was valued at $190.8 million in 2024, according to market research.
Sannito said the upgrades will help stabilize kelp throughput, which has fluctuated from 40,000 pounds last year to several hundred thousand pounds in peak seasons. By improving efficiency and expanding product lines, the tribe hopes to strengthen markets for Kodiak’s five active kelp growers and attract new entrants to the sector.
“We’ve blanched it, dried it, ground it, acid-stabilized it—different forms every year,” Sannito said.
The KP3 initiative also includes construction of a new building across the street from the processing plant, replacing the trailer currently used for office space. The new facility will house administrative offices, a retail storefront and a seafood café offering light fare such as lox and bagels and hot fish sandwiches. The café is expected to open early next year.
Tribal leaders and regional partners say the project reflects a broader commitment to community-led economic development rooted in cultural values and long-range planning.
“Leadership rooted in community and culture is essential to the success of projects like this,” said Robbie Townsend Vennel, executive director of the Kodiak Archipelago Leadership Institute. “We celebrate the Sun’aq Tribe’s vision and dedication to helping build a sustainable mariculture industry in our region.”
Melissa Schoenwether, executive director of the Kodiak Economic Development Corporation, said the investment lays the groundwork for a more resilient local economy.
“By pairing new equipment with long-range planning and facility development, we can expand production, create jobs and strengthen our community’s future,” Schoenwether said.
The Sun’aq Tribe acquired the Wildsource facility in 2009, purchasing it from Sannito, who continues to manage operations. The plant runs year-round and typically works with both commercial and sport fishermen. Its small footprint stands in contrast to neighboring facilities owned by large processors such as Pacific Seafood and Silver Bay Seafoods, but tribal leaders say the plant’s flexibility and community orientation make it well-suited to mariculture innovation.
The KP3 project also aligns with the tribe’s broader goals around food sovereignty, workforce development, and environmental stewardship. By investing in kelp — a fast-growing, low-impact crop with applications across food, agriculture, and manufacturing — the tribe is positioning itself at the forefront of Alaska’s blue economy.
“This grant represents a vital investment in Kodiak’s economic future,” said Shauna Hegna, president of the Koniag Regional Corporation. “It will help diversify the local economy, create jobs, and reinforce the region’s position as a leader in Alaska’s mariculture industry.”
The Sun’aq grant was one of six awarded in the second round of the Alaska Mariculture Cluster’s Equipment Program. A third round of proposals closes in October, with additional funding expected to support strategic upgrades across the state.
For Sannito and the Sun’aq Tribe, the next phase is about execution — installing equipment, training staff, and building out the KP3 platform.
“It’s geared to up our output significantly,” Sannito said. “And we’ll be able to diversify the products that we make.”
