The Government is investing in a factory in Marlborough to process a previously wasted marine by-product.

The Regional Growth Fund will put almost $800,000 into a blue mussel processing plant.

Until now, blue mussels have been wasted, and were only picked up in the search for the more valuable green-lipped mussels

The Government's research arm, Callaghan Innovation has found ways to process them as pet food and pesticide alternatives.

Under-secretary for Regional Development, Fletcher Tabuteau told Kate Hawkesby it is a good investment.

"It's creating employment, it's helping out local iwi, [and] help a commercial project do some pretty amazing things while ticking the boxes of helping the provinces grow as well."

LISTEN ABOVE AS FLETCHER TABUTEAU SPEAKS WITH KATE HAWKESBY