The Government is investing in a $1.5 million project that will likely create the world's first commercial seaweed-based nanocellulose manufacturing plant.

The innovative project in Paeroa in the Waikato is being supported with a $750,000 loan from the Government's Regional Strategic Partnership Fund.

Minister of Economic and Regional Development Stuart Nash says the project will create nine jobs will be created.

'The investment will allow Māori-owned AgriSea New Zealand, a well-established family company producing biostimulants from native seaweed for horticulture and agriculture industries, to expand and diversify its current plant and produce commercial volumes of nanocellulose hydrogel.”

The product can be used in bio-composites, cosmetics, wound care and tissue engineering.

The seaweed nanocellulose differs from tree-based sources and will supply a growing market both in New Zealand and offshore.

'This is an exciting development for the company and New Zealand. AgriSea has been operating successfully for 26 years and is already a recognised leader in seaweed and agricultural products.

'Its strong commitment and investment in research and development of this new product, in partnership with Crown Research Institute Scion, is shining a light on the exciting potential of the Marine economy.

'Investing in AgriSea not only supports local job creation, but will help grow our regional economies and allow regional businesses to continue to innovate.

'The project aligns with the Government's Aquaculture Strategy and its goal to reach $3 billion in annual sales by 2035.

'The initiative also supports Waikato's strategic regional economic development priorities of sustainable food and agriculture.”