Feasibility Study for the Establishment of a Sargassum Algae Biofertilizer Production Plant in the Dominican Republic

In response to global environmental concerns, particularly ocean pollution and its devastating effects on marine ecosystems and tourism, this study proposes an innovative and sustainable solution. It focuses on sargassum algae, whose excessive proliferation in the oceans has been driven by industrial pollution and global warming, adversely affecting marine life and tourism in the Dominican Republic. To address this challenge, the establishment of Biorgazo S.R.L, plant is proposed, dedicated to the production of natural biofertilizers from sargassum. This biofertilizer, named Biorgazo, is presented as an ecological alternative to synthetic and chemical fertilizers. It is characterized by its high content of essential nutrients such as phosphorus, potassium, nitrogen, calcium, sulfur, and magnesium, and a moisture level beneficial to the soil. Strategically located in San Pedro de Macoris, the plant requires an initial investment of RD$86,807.66, including construction, machinery, transportation equipment, and other supplies. The financing is distributed between a loan from a local bank, covering 70% at an interest of 15.95% annually for 12 years, and the remaining 30% by principal shareholders. The economic and financial viability of the project is confirmed with a Minimum Attractive Rate of Return (MARR) of 12% for 10 years, a Net Present Value (NPV) of US$208,595.83, and a Payback Period (PP) of 4.20 years, ensuring a Return on Investment (ROI) of 23.78%. This project not only represents a promising solution to a critical environmental problem but also promises to revitalize the local economy and tourism, transforming an environmental issue into an opportunity for sustainable development.