In 1991, inventor Charlie Paton began researching and developing the seawater greenhouse concept through his company Light Works Ltd (later renamed Seawater Greenhouse Ltd). Working with Philip Davies, he commenced the first pilot project in 1992 on Tenerife, with construction completing around 1994. The project received partial funding from the European Commission, reflecting early institutional confidence in the concept.

The 360 m² prototype demonstrated that seawater could be drawn from the coast to cool a greenhouse via evaporative cellulose panels, simultaneously humidifying the air and producing a small amount of fresh water through condensation. It proved crops including tomatoes, spinach, peppers, artichokes, French beans, and lettuce could all be grown in desert coastal conditions without freshwater irrigation.

The Tenerife prototype successfully validated the seawater greenhouse concept and paved the way for the Abu Dhabi and Oman pilot projects. Its success attracted EU funding and set the scientific foundation that all subsequent deployments — including the commercial-scale 20-hectare Sundrop Farms facility in Australia — were built upon.