In algae farming, open pond systems are open to the environment, while closed systems are contained within controlled environments. Open pond systems expose algae to the natural environment, using shallow ponds or raceways where sunlight, air, and nutrients are supplied directly. These systems are inexpensive to build and operate, making them suitable for large-scale production, especially in warm climates. However, they are more vulnerable to contamination from unwanted species, weather changes, and evaporation.
Closed systems, such as photobioreactors or enclosed tanks, provide a controlled environment where temperature, light, and nutrients can be carefully regulated. These systems protect algae from contamination and allow for consistent, year-round production, but they come with higher construction and operational costs. Closed systems are often preferred for high-value products, like pharmaceuticals or nutritional supplements, where purity and quality are essential.