Like eggshells, lobster shells in compost bins are considered ‘greens'. It is recommended that you grind or crush them before adding lobster shells to compost as they breakdown slower than grass clippings or weeds. Lobster shells add calcium, phosphates, and magnesium to compost piles. They also contain a carbohydrate called Chitin, which retains moisture and deters harmful insects. Calcium is important because it helps plants develop string cell walls and can help prevent blossom end rot and other vegetable diseases.

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Source: Gardening Know How