Merredin Spirulina Algae Farm
This case study is a summary from a real world project, executed in 2000/2001 in Western Australia. It was the first project to use some of the tools that later became SiD.
The Case of Merredin, WA
Central question: How to revitalize a declining remote desert town through integrated problem-solving?
The city council faced deterioration and economic decline. Government funding was available to renovate a historical pumping station, but the town suffered from youth exodus, faltering infrastructure, and limited economic opportunities. A University of Western Australia team conducted a 3-day investigation using ELSIA resource mapping.
Analysis: Hidden Resources
Historical Context
Merredin functioned as a truck stop and mine supply station, with a train station and water pumping facility. Agriculture (wheat and grains under irrigation) and a "healthy foods" marketing strategy provided some economic base, along with unusual historical and cultural heritage from early colonial settlement.
Challenges
- Declining truck traffic
- Factory closures and youth unemployment
- Historic theater closure
- High groundwater table with extreme salinity
- Salt damage to roads and building foundations through salt crystallization
Resource Maps
Assets
Abundant sunlight, available labor, a "health" marketing image, strong logistics (road and rail), saline groundwater, cheap land, cultural heritage buildings, regenerative groundwater capacity, and a motivated entrepreneurial community.
Limitations
Severe financial shortage and limited ecological resources.
Understanding the System
Key insight: problems viewed differently become resources. The town needed "a brand new economic engine" for resilience and autonomy. The saline groundwater that was destroying infrastructure could become the foundation for a new industry.
Solutioning
Through systematic cross-breeding of assets:
- Desalination was considered but found too expensive
- Health spa was evaluated but presented a weak business case
- A biological catalyst combining saline water + land + sunlight + pumping station was explored
- Spirulina algae emerged as ideal: thrives in saline water, requires abundant sunlight, grows in shallow basins
Spirulina Properties
- Edible blue coloring for cosmetics
- Vitamin B12 source and health food
- Preserves well when freeze-dried
Business Model
The abandoned pumping station would become headquarters, the water-agitator repurposed as testing equipment, surrounding lands converted to growing pools. Freeze-dried product, packaged on site, with highway access for distribution. Projected multi-million dollar annual enterprise, employing dozens, with returns under 5 years.
Evaluation
The proposal addressed all objectives but was rejected by the city council.
Lessons Learned
The integrated systems approach proved effective and validated SiD's development path. However, the critical failure was stakeholder involvement:
"I failed at involving the people that I was doing it for, and because of that they, justifiably, rejected the proposal. Without a collaborative process that involves the community and stakeholders, one is just building castles in the sky."
Follow-Up
A decade later, the municipality invited a redo with stakeholder involvement throughout the process. A profitable business case was produced with community support. Unfortunately, government policy changes withdrew funding, halting the project. The business case remains available for private investors.