A derivative of the algal toxin that wiped out Wellington Harbour sealife in 1998 could become a component of marine anti-fouling paint.
It is a potential multimillion-dollar export industry for Wellington, said Institute of Environmental Science and Research (ESR) marketing manager Jeremy Wah.
ESR, the National Institute of Water and AtmosphericResearch (Niwa) and Victoria University have joined forces with Tauranga paint company Altex Coatings to test algal poison paint formulas.
Anti-fouling paints stop barnacles, shellfish, seaweeds and other marine life growing on ship hulls and oil rigs. But present heavy metal-based formulations are extremely toxic and persist in the environment.
An International Marine Organisation ban on present paints by January 1, 2003, has unleashed a worldwide scramble for environmentally friendly alternatives.
The market in Australasia and Pacific Island countries alone would be 700,000 litres a year, worth $14 million, Mr Wah said.
A successful paint would have to last at least five years, not react with other surfaces and break down in the environment, he said. But a commercial product could be many months away because of time needed to obtain US Environmental Protection Agency approvals.
In February and March 1998, the Karenia brevesulcata algae covered Wellington harbour's seafloor with a poison that killed almost all sea-floor life and fish, and caused breathing problems in more than 150 people.
Scientists said in November that seafloor fauna had recovered well from the onslaught, particularly worms, crabs and shellfish.