Quay Fresh and Frozen Foods, in New Quay, produces 800 tonnes of crushed whelk shell waste each year.
In December 2016, it was granted a licence to dump some of it into the sea, despite complaints from residents.
Its collaboration with the university's Seacams 2 project aims to find commercially viable uses for the waste.
Researchers are looking into several possibilities, including water filtration media, soil conditioners and the potential for creating an environmentally friendly alternative to microbeads.
Quay Food's director Mandy Andrews said: "We want to ensure that we have a sustainable and stable fishing industry.
"We hope that by exploring options to maximise the efficient use of all parts of the shellfish, we can contribute to a better future for our family of employers here and for the fishermen that our business supports."
Researchers from Swansea University have joined forces with a Ceredigion food company to find new uses for shellfish waste.