Oyster farming is a new industry in Delaware, with the legislation to permit shellfish aquaculture passing in 2012, the first leases distributed in 2017, and the first cultured oyster sent to market in 2018. Despite initial interest, industry growth has been slow due to factors such as the COVID-19 pandemic, financial and regulatory barriers, and a lack of seed supply. In 2022, the University of Delaware in collaboration with Delaware State University and Delaware Sea Grant established the state’s first industry-serving oyster hatchery to provide larvae, seed, and remotely set spat on shell to Delaware growers and restoration projects. Our goal was to address the seed supply barrier. Our hatchery utilizes an existing 800 sq ft building on the University of Delaware, Hugh R. Sharp campus in Lewes, DE at the mouth of Delaware Bay. This facility, equipped with seawater intake pumps, a multistage seawater filtration system, algae grow-out, broodstock conditioning system, larval tanks, and outdoor nursery has the production capacity of up to 50 million eyed larvae per year once optimized. Our small-scale facility is proof of concept toward a larger, industrial-scale facility that can better serve Delaware growers and beyond. The pilot hatchery also serves as a research and development space and a demonstration space for extension purposes. In the 2023 inaugural season, we successfully supplied 105,000 remotely set spat-on shells to a commercial grower in Delaware Bay while providing educational tours to approximately 50 individuals. In 2024, we successfully supplied 650,000 seed oysters to eight Rehoboth Bay growers and 460,000 remotely set spat-on shell to four Delaware Bay growers along with touring approximately 100 individuals. In the pilot phase, the hatchery aims to transfer 1 million seed oysters to Delaware growers annually. Though eastern oysters are the main focus, the hatchery aims to also produce hard clams and scallops as the operation develops.