Blue Frontier Magazine 2013

BlueFrontier

MAGAZINE No. 1 - 2013

Lara BaraziYeroulanos: - One of the bottlenecks to aquaculture development will be competition for the marine coastal zone.

The race for space

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Nofima AS - Norwegian Institute of Food, Fisheries and Aquaculture Research P. O. Box 210, NO-1431 Ă…s, Norway, Tel: +47 64 97 01 00, www.nofima.no, post@nofima.no

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Content

BlueFrontier

MAGAZINE

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Published by MareLife www.marelife.org Chairman: Carl Seip Hanevold Excecutive Manager: Øystein Lie CONTACT:

Marelife

Gaustadalléen 21 N­0349 OSLO, NORWAY

Email: oystein.lie@marelife.org Mobile: +47 91 7 48 240

E­mail: Oystein.Lie@forskningsparken.no http://www.marelife.org

Oslo Innovation Center

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Gaustadalléen 21 N­0349 OSLO, NORWAY Tel: +47 22 95 85 00 Fax: +47 22 60 44 27 Email: post@forskningsparken.no http://www.forskningsparken.no COVER PHOTO:

1 - Anders Fjellvang and Christopher Cabot at Beck Engineering testing the laser that is going to kill myriads of sea lice on salmon. Read: Pages 8-1 1 Photo: Gorm K. Gaare.

2 - Maria Damanaki, Lisbeth Berg Hansen and several fisheries ministers around the world reviews the future marine challenges. Read: Pages 1 8-21 3 - Millions of Europeans don't know how to treat & eat the fish, reports Dag Yngland from Berlin. Read: Page 22.

Photo: Gorm K. Gaare.

4 - Rita Westvik with a clear message to the industry: Dear to share and explore new frontiers. Read: Last Page.

5 - Radisson Blu Royal Hotel Bryggen, Bergen Harbour, a venue for global marine dialogue and innovation, March 5-7. Read: Page 5-7 Photo: Finn Eirik Larsen

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WWW.OSLOBUSINESSMEMO.NO PRINTED IN BERGEN

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COVER PHOTO: Lara Barazi-Yeroulanos is CEO at Kefalonia Fisheries S.A. with 1 00 employees, producing and selling 8 million fry and over 3 000 tons of Bass and Bream, with annual sales of over EUR 20 million. Read: Pages 1 2-1 3.

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From the Editor

Knowledge solutions

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nowledge is the major base to all progress. This is increasingly being the case along with the development of a knowledge intensive and versatile sector like aquaculture.

Being mankind’s prime candidate to expand long term global food supply, aquaculture is accompanied with enhanced demands for cost efficient and sustainable solutions on a continous basis. We are talking knowledge and dialogue at all levels in the innovation ecosystem: commercial value chain, capital, R&D entities, public sector and state authorities, consumer, the socioeconomics landscape. In the blue food supply domain there are two major issues which in particular need our increased attention as of necessary knowledge gains: living wild resource managements and their sustainable exploitation together with predictability of our, in captivity, farming and production systems.

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evertheless, without actions and not the least concerted actions, which always will be more robust, we do not move.

Hence, knowledge based moves is the best way to advance the sector. Combining entrepreneurial spirit, incentives to industry and capital to develop sustainable solutions, private public partnership, release of the enabling power of biotechnology and leaving room for both propritetary rights and open innovation, everything in good dialogue with the people, will represent a good tool box for taking us to the next paradigm shift.

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ur NASF Marine Innovation Day, Bergen, March 5- 2013, reflects the above spirit. We have gathered all possible stakeholders and the agenda is set by high esteem ambassadors to paint the scenarios and point at tracks to follow. This is followed up by Think Tanks (focused workshops) covering zoning and ecofriendly site selection, legislations and framework, science and tech, engineering & gears, existing and new bio resources, human health and marine products and not least, the need of human capital, smart capital and cluster development. Our classic success formula with exposure of innovative cases is on and vital as ever and new initiative this year is our vision paper for global aquaculture solutions, edited by prime people responsible for the event.

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e are excited to have such an impressive mobilization of participants to our event and honored to have the best ambassadors aboard to form the day; dedicated to advancing environmentally and socially responsible aquaculture, which is the only way to expand the sector.

Prof. Ă˜ystein Lie,

Executive Manager, Marelife Project Manager, Oslo Innovation Center oystein.lie@marelife.org

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Apprending marine knowledge: HM King Harald in The Norwegian Academy of Science and Letters, where new marine knowledge was presented and shared in January, 201 3.

Photo: Gorm K. Gaare.

There is a highly innovative, global dialogue going on right now. It's not about combating terrorism, nuclear disarmament or financial crisis. It's about the very basic question for every single human beeing: How to secure food supply, not only for today's need, but when the global population passes 9 – nine – billions within the next 37 years.

THE RACE FOR SPACE: The enormous growth potential in

aquaculture has ignited a race for space and eco-friendly site selection both in freshwater and offshore. New areas for expansion of fish farming is needed, and farming of macro algae, new fish

species and shellfish will demand even more space.

- There is a lack of clear methodology to locate and verify the most procductive areas and sites for different cultures of algae and shellfish, according to Ola Einem, Nofima.

The race for space to feed the world is one of the important topics worked on in MareLife's Vision Paper, initiated in the run-up to NASF Marine Innovation Day. Kjell Maroni of FHF optimisticly manages seven think tanks concentrating on different aspects of marine innovation. The think tank-conclusions will be

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Intrigued by the challenges, King Harald of Norway accompanied by The Minister of Education and Research Kristin Halvorsen and a crowd of top-level representatives for academia, science and industry gathered in January 2013 at The Norwegian Academy of Science and Letters to listen to lectures and engage in debate on how marine innovation will help global food supply in the years to come.

Such efforts to point out directions for the coming 40 years have become a great global rally advancing activities to find blue food solutions: International conferences and meetings adressing these questions with key players gathering to share their thoughts, visions, new innovations and initating new businesses and investments.

Thinking global blue food

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- We must focus high up og and long forward beyond the challenges of today.

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Kjell Maroni (picture below), director FHF, Chair Vision Paper Group.

incorporated in a Vision Paper; Visions for Major Innovations in Global Aquaculture Production. Maroni's ambitions are that the vision paper shall have a major impact on the efforts to realize the most important innovations necessary in the years to come.

- Such discussions as we initiate in these think tanks, the participants have to focus high up og and long forward beyond the challenges of today: To have visions on what would be necessary major innovative breakthroughs to advance the global aquaculture to a level globally so that it may substantially help to feed the earth's population in the future, says Maroni.

Karl A. Almås, head of SINTEF Fishery & Aquaculture, chairing the NASF Marine Innovation Day, has worked extensively on reports with scenarios for the future of food from the sea. The increased need for seafood from the sea in general will, according to Almås become even more expanded in order to meet the health challenges of the world.

- Marine products can do a difference in combating unhealthy nutrition and overweight, Almås says.

Sharing her knowledge, researcher Helena Hauge from The Norwegian Veterinary Institute, presenting a forefront project on DNA vaccine in a December 201 2 seminar.

According to Odd Magne Rødseth, CEO at Aqua Gen, a trend setter in applying contemporary genetics in breeding schemes, it will be increasingly difficult for cold water aquaculture to exploit a larger share of the total fish meal and fish oil supplies for fish feeding.

- Intensive research programmes have been initiated to find alternatives. The most promising efforts include production of longchain omega-3 fatty acids by yeast fermentation, extraction from algal sources or genetic modification of oilseed crops, Rødseth says.

HUMAN CAPITAL: The traditional import-

ance of availability of natural resources in a nations seafood industry (e.g. in Norway) will gradually change to intellectual capital as increasingly critical. According to Marius Nordkvelde, member of Maroni's think tank team, there are several types of intellectual capital that at all levels are critical for seafood industry success.

Intellectual capital is located in the heads of employees in companies, bureaucrats in public managament and researchers. It can be manifested in private companies and reg-

ulations and conduct of these. Other components in intangible capital are the value of customer relationships, trademarks and patents. According to Nordkvelde a key question for the future is to what extent seafood nations will be attractive to localize jobs, companies and financial capital. As salmon farming regions are challenged by other species in other regions, the importance of attracting and developing human capital and companies increases.

Many of the best brains in global marine innovation are concentrating on finding efficient feed for the fish to increase output of food for humans. Today 30 percent of the ingridient in aquaculture feed to e.g. salmon and trout comes from marine fish.

If the aquaculture industry shall increase by five to ten times in the next forty years, the expenditure of marine resources needs to be increased. As a result of the global stagnation in traditional fisheries landings, there is a need to develop a sustainable marine contribution of marine ingredients from different trophic levels.

This has to be done in a close interplay between the commercial interests, science, management and policy.

7 PORTRAITS: Facilitators and contributors of the global exchange of knowledge, competence and innovations in the marine sector: Georg Chamberlain (1 ), Pierre Erwes (2), Karl A. Almås (3), Jørgen J. Lund (4), Odd Magne Rødseth (5), Petter Dragesund (6), Tanja Hoel (7), Øystein Lie (8).

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- There are increased willingness to share .

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Øystein Lie, MareLife.

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THE GLOBAL CONFERENCING: An import-

headed by Pareto's Corporate Director Petter Dragesund.

- One of the most important meeting places for anyone involved in seafood, Lund says, gathering speakers from 20 countries, the World Bank, OECD, Global Aquaculture Alliance. The Food and Agriculture Organization of the UN has also become a partner of NASF, as well as the local co-organizer Fiskeriforum Vest led by Tanja Hoel in Bergen. According to Hoel the Bergen Seafood Week will be introduced in 2014.

Pierre Erwes, founder of BioMarine Business Convention, organizes the conference in Halifax in September 2013.

- Our objectives are to meet the growing need for up-to-date information, encourage international development and lobby international organizations, Pierre Erwes says. He focuses on investments in marine biotechnology: - Unfortunately investors are kind of sceptical when it comes to marine biotechnology, Erwes says: - To get the investors on board we need a better global communication and a stronger international representation of the sector, and build a recongized international structure – independent from the existing biotech organizations.

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George Chamberlain, founder and president of Global Aquaculture Alliance (GAA), aims to define the aquaculture agenda for the next 10 to 20 years on the alliance's conference in Paris, October 2013.

What can be done to ensure the additional millions of tons of seafood required to feed the world are produced in a responsible manner, is the GOAL 2013 conference main question.

- Rising global demand for seafood, driven mainly by a rapidly growing middle class in China and other Asian nations, is putting new pressure on the aquaculture industry to find sustainable ways to increase productivity, Chamberlain says. He points to the advances in production technology for farmed shrimp, the most valuable internationally traded aquaculture species, as an example of the marine innovation needed in the future.

Text: MAGNE OTTERDAL magne.otterdal@oslobusinessmemo.no Photo: GORM K. GAARE gorm.gaare@oslobusinessmemo.no

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ant part of pushing development and innovation is the new and old meetingplaces around the world, inviting the different players together to confront the challenges. Both public and private conference entrepreneurs play important roles in this respect, - We have to mobilize both human capital and smart money together with robust knowledge based clusters when aiming at seriously taking this sector forward to its potential. The willingness to share information and competence is increasing, professor Øystein Lie says. He is the Chairman of NASF, Manager of MareLife and organizer of the annual NASF Marine Innovation Day. Seafood conferencing entrepreneur Jørgen J. Lund, founder of North Atlantic Seafood Forum eight years ago, points to the development of the annual conference as a result of interaction with the seafood industry companies, partners and stakeholders. One of the world's biggest seafood finance banks and major shareholder in NASF, Pareto Securities, is in charge of the Corporate Finance Seminar including the world's biggest listed seafood companies -

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The “Stingray” innovation can contribute to the sustainable growth of the aquaculture industry.

In for the laser lice kill.

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JUST SHOOT IT! By the end of this year,

the first salmon infested by sea lice and succesfully treated by a newly developed laser technology can be on the dinner table. Beck Engineering's patented laser solution “Stingray” is one of the innovations that can contribute to sustainable growth of the aquaculture industry.

The story of Stingray goes back to Christmas 2009, when there was a great deal of media attention about the resurgence of sea lice in Norwegian fish farms. Entrepreneur Esben Beck read the news stories, and one day he got an idea: Why not just shoot the sea lice with laser?

He started to research patent databases and googled sea lice and laser.

- When I got zero hits on google, I felt a chill down my spine, Beck says today. He immediately went back to work to write patent applications, and worked around the clock. In February 2010, the patent applica-

tions were completed. Today, the laser is almost fully developed, and it has potential to be a real game changer in fish farmers fight against sea lice.

creased food production from the sea is an important means to solve challenges, but it assumes that production is environmentally sustainable.

A report produced by a working group HUGE CHALLENGES: One of the greatest appointed by The Norwegian Academy of global challenges of this century is to Science and Letters and Norwegian Academy provide enough food for a growing popula- of Technological Sciences points to the great tion with increasing purchasing power. Inpotential for marine value creation in the decades ahead. For Norway, marine value creation may increase from about NOK 80 billion today to almost 500 billion in 2050, driven by the need for food production and increased demand for seafood.

But it requires large investments in education, research, At Beck Enginlarge-scale infrastructure and eering in Oslo, logistics chains, and that the Christopher industry is able to increase its Cabot, head of productivity. It will be a huge workshop is finchallenge. ishing a machine The Norwegian Academy of part.

Science and Letters recently addressed these issues in its Photo: Gorm K. annual symposium, held in its Gaare.

9 Anders Fjellvang (left) and Christopher Cabot testing the laser at Beck Engineering.

Photo: Gorm K. Gaare.

stately villa in Drammensveien in Oslo. In front of a celeb assembly, with His Majesty King Harald and The Minister of Education and Research Kristin Halvorsen, professor Ragnar Tveterås from the University of Stavanger showed how growth in global aquaculture has shown a declining growth trend over the last decades. In the 1980s, world aquaculture production grew by 170 percent, the decade after growth was 130 percent while in the first decade after 2000, the number was down to 76 percent.

Tveterås proceeded to ask whether this is due to the low rate of innovation, and the role of R&D investment and economic organization.

Beck Engineering won the regional finals in the battle for DnB's Innovation Award with the Stingray solution. Looking back to Christmas 2009 when Esben Beck first got the idea, the development of Stingray has gone remarkably rapid.

Beck Engineering has its origin in Esben Becks basement. In 2000, when he was about to attend engineering at Oslo and

gen in January 2011, where we presented the idea. And they got excited by our idea, says general manager John Arne Breivik in Beck Engineering.

The laser solution is alluring to salmon farmers. Use of chemical treatment is expensive, it requires a lot of manual work and has created resistance problems. A laser based system for reducing sea lice infestation is operated automatically, and can provide significant cost savings.

The solution involves two devices submerged in salmon cages. The units contain, among other things, advanced camera technology and laser and the whole system is controlled by software. The salmon moves in predictable patterns in cages, and when cameras capture salmon infested by sea lice, the laser is directed at each individual fish and shoot the sea lice.

With backing from the industry, Esben Beck and his team focused entirely on the Stingray project and put aside or declined new projects. During 2011, they conducted proof of concept, with a budget of NOK 3.5 million which was funded by Lerøy, Marine Harvest, SalMar and FHF (The Fishery and

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FAST TRACK DEVELOPMENT: This winter

Akershus University College of Applied Sciences, Beck bought a metal lathe and ended up spending hours working in the basement.

Business grew quickly, and Beck Engineering soon worked with development and innovation for the oil and gas industry, and particular with engineering projects involving remote interventions. Beck never made it back to engineering school.

From its high spec workshop at Stålfjæra in eastern part of Oslo, Beck Engineering has developed a portfolio of projects including subsea and deep water equipment as well as inspection vehicles and inspection tools. This experience and knowledge from complex technology projects proved to be vital when Beck decided to go ahead with the sea lice project.

After the patent application was submitted during winter 2010, Esben Beck and his team began to outline the process from idea to solution. And in autumn 2010, the team asked themselves: What do we do now with the sea lice project?

The answer was to involve the industry.

- We had a meeting with Marine Harvest, Lerøy, SalMar and Innovation Norway in Ber-

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PICTURES: 1 - The laser killing of sea lice on salmon.

2 - The team at Beck Engineering. From left Espen Beck, Christopher Cabot, John Arne Breivik, Steinar Laudal and Anders Fjellvang.

3 - Anders Fjellvang at the laboratory.

4 - John Arne Breivik and Anders Fjellvang.

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Photo: Gorm K. Gaare.

Aquaculture Industry Research Fund) and Beck Engineerings own capital.

- We experienced that the industry had confidence in us, we proved that there was no doubt about our concept of optical sea lice treatment, and we did it on time and on budget, says John Arne Breivik.

Beck Engineering demonstrated that it was possible to discover and track sea lice using cameras which scans fish in the cages, that lice were defused by the laser, and that treated fish were not injured, which was tested and verified by NIVA (The Norwegian Institute for Water Research).

Research and development was conducted in the workshop in Oslo and at the Institute of Marine Research' site at Austevoll near Bergen, where Beck Engineering has rigged up its own laboratory in a 20 feet container.

In late 2011, the groundwork was laid for the second phase of development, when Beck Engineering agreed on and signed a socalled IFU contract (Industrial Research and Development Contract) with Innovation Norway, Marine Harvest, Lerøy Seafood Group and SalMar which lasts to March this year.

IFU contracts seek to develop competitive products in the international market, and to develop industrial networks and environments. Through a committed relationship, firms get access to new expertise, global network of strategic partners and international markets.

The budget for phase two was NOK 22.5 million, and was funded by Lerøy Seafood Group, Marine Harvest and SalMar (NOK 7.5 million), Innovation Norway/Skattefunn (NOK 7.5 million) and the company itself (NOK 7.5 million).

To finance its share Beck Engineeering began discussions with various investors and before summer last year the company finalized an agreement with venture capital firm TeleVenture and its founder and managing partner Rune Rinnan to invest in Beck Engineering.

- That gave a very good basis for the way forward, says Breivik.

- We have worked around the clock for more than two years, and we have put in an estimated 30.000 hours in this project, he says.

STATE OF THE ART TECHNOLOGY: The

sea lice solution contains high-tech solutions in all parts, including proprietary software created by hired game developers.

Software will control the entire system, including cameras, lighting and laser beam, and is constructed with artificial intelligence. The system scans fish in the cage, picking out areas that are particularly interesting and directs the laser beam. Images are also checked continuously against a picture library. The software is of vital importance to the system and SINTEF ICT is hired to check the development of this software.

- The software controls the whole system, and this is important because it will be a fully automated process. The system is super fast and can process 15 million messages within ten seconds. The software is designed so that it always learns. For example, the more pictures we have of sea lice, the better is the system because it knows whether to take aim or not and thus will be more effective. At the same time, the technology involved is constantly innovated, including the camera technology, which

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- We believe Stingray can help the aquaculture industry to continue to grow in a sustainable and efficient manner.

John Arne Breivik, CEO, Beck Engineering.

bination with wrasse, where one uses wrasse at salmons up to between 800 grams and 1.2 kilograms, and laser on the larger fish, says Breivik.

- This is also mathematics, and the Norwegian Computing Centre and The Norwegian Veterinary Institute are involved, Esben Beck ads.

The partners Lerøy Seafood Group, Marine Harvest and SalMar have first right to order from the prototype series, which will be ready this autumn. Beck Engineering expects that it will produce between 10 and 30 units of this series, and the first to be put into operation during autumn 2013. The units are produced in the workshop at Stålfjæra.

Today, there are 10 full-time employees, but before year's end they expect to be around 15.

- How do you think the market will develop?

- We believe it has potential to grow from zero to a few hundred million in three to four years, says Breivik.

THE BLUE REVOLUTION: Back at The

Norwegian Academy of Science and Let-

ters symposium, professor Ragnar Tveterås is talking about the blue revolution, and how global aquaculture industry has undergone enormous fluctuations in production, which can be explained by disease and infection, and a form of market failure with respect to R&D. Private actors in the industry are not getting enough return on its R&D investment, which in term leads to underinvestment.

- Long-term growth depends on productivity growth, says Tveterås.

The productivity growth in aquaculture has abated, and it may indicate that total cost of pushing production costs further down is too high. Studies by professor Terje Vassdal at The University of Tromsø show how the cost of producing one kilo of salmon in Norway fell from NOK 71,30 in 1987 to NOK 18,77 in 2005. By 2008, the cost had risen to NOK 21,47. Rising costs related to sea lice is one of the reasons behind this increase.

Text: PER GJØRVAD per.gjorvad@oslobusinessmemo.no

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ensures us that the system will only get better and better, says Breivik.

During the winter, a system has been tested in a small cage at the Institute of Marine Research` facilities at Austevoll near Bergen. This spring new tests will be conducted in a large cage. And this autumn the prototype series will be ready for operation.

- How much lice can you shoot?

- The laser can shoot pre adult lice that are 6-7 mm long, but it will primarily aim to shoot mature females, which are about 1012 millimeters. If there are more than 100 000 mature females in cages with 200.000 fish it is dangerous and it may spin out of control, so something must be done. The industry has set a target level at around 0.2, which in this case means 40 000 lice. If each laser kills one lice every 30 seconds, it means up to 3 000 lice a day. But the system has capacity to kill several lice per second. This is a permanent installation of continuous optical delousing, which will reduce the level of lice to prevent outbreaks with exponential growth. The more sea lice, the more effective it becomes. It is also possible to imagine optically delousing in com-

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The aquaculture industry has tremendous potential for playing an active part in the future food supply.

The dangers lies in not respecting what consumers and neighbours want, warns Lara Barazi-Yeroulanos, CEO of Kefalonia Fisheries.

Grow the fish; slow and with love.

Blue Frontier Magazine: What is the secret of being a succesful family business in Mediterranean aquaculture for 20 years?

Lara Barazi-Yeroulanos: - Raising our fish is really a labour of love.

The fish grow slowly, as nature intended. Our fish take almost twice as long to grow to maturity as other farmed fish. We do not use any additives or any other artificial means to speed up their growth. Their feed is specially formulated to match exactly what they would eat in the wild, explains Barazi-Yeroulanos.

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BFM: Why is quality and sustainability so important to you?

LBY: - I think that all food production industries have a tremendous responsibility. They must produce under the most stringent conditions as to hygiene and safety. Full control of the whole production chain is an essential part of any food production system. Any lapse, whether health hazard to consumers, false claims or a substandard product is absolutely unacceptable. As a mother I know how much I worry that I am choosing the very best, healthiest foods for my chil-

dren as parents everywhere do. We wonder what is really in our food, how it was made and who is overseeing the whole process.

BFM: How do you view the future market of aquaculture in competition with meat - in regard of the many scandals in that business lately. Is aquaculture better off?

LBY: - Aquaculture producers may be better off in that the products we produce are already widely recognized as healthful with essential benefits for a balanced diet, However we have to be just as vigilant as any other food producer, be it meat or anything else.

As far as production in developing countries is concerned, it is very important that we, as Lara Barazi-Yeroulanos European citizens, be is CEO at Kefalonia aware that there may not Fisheries S.A. with 1 00 be the same standards in employees, producing production required everyand selling 8 million fry where in the world. At the and over 3 000 tons of EU level we often set highBass and Bream, with er standards for our produannual sales of over cers as for our consumers.

EUR 20 million. Exports This is very dangerous as a over 80 %, mainly to scandal that may result France, Italy as well as from poor practices in othSpain, Portugal, UK er countries will affect the and US.

13 Kefalonia Fisheries S.A. on the island of Kefalonia between Italy and Greece. The island is mainly agricultural and is known for its wine, the Robola, its olive oil and thyme scented honey.

The clear and deep waters of the Bay of Livadi provide an ideal environment for the culture of Mediterranean Sea Bass and Sea Bream.

Picture: Lara Barazi-Yeroulanos, CEO, Kefalonia Fisheries.

market as a whole. The image of the whole industry is affected.

There has to be a level playing-field.

BFM: What can the North Sea farmers learn from the one along the Mediterranean countries?

LBY: - The salmon industry in the North has always been a model for us and is far more advanced in the fields of genetic selection, sustainable feeds, disease management and animal husbandry in general.

In two areas, however, I feel that we may have some advantages.

In the Mediterranean sector we had to develop in a less “industrial” manner. Average site sizes are much smaller due to the intense competition for space we have with tourism.

BFM: So small is more beatiful?

LBY: - I think that the aquaculture industry has tremendous potential as core industries in southern Mediterranean countries. In the last 10 years, the Mediterranean sector grew at an average annual rate of 8% up until 2008 whereas the EU aquaculture sector overall has grown at an average annual rate of only 0.37%.

It has been an essential contributor to sustainable prosperity in regional communities and an important alternative to tourism as a source of long-term, full-time employment in Greece and the Mediterranean region as a whole.

BFM: Is there a fight for space in the coastal areas?

LBY: - Absolutely. In Greece 99 % of the population live within 100 km of the coast. One of the important bottlenecks to aquaculture development will be competition for the marine coastal zone.

Developing aquaculture sites offshore faces the challenges of weather and depth which could be mitigated by coordination with offshore wind platforms.

Fishfarming has also gradually taken on the role of the declining traditional fishing sector in preserving traditional employment and the way of life in the islands and coastal rural regions. In contrast with a gradually shrinking profession with little appeal to younger generations, employment in aquaculture has been steadily increasing for the past 10 years.

Text: DAG YNGLAND, Berlin dag.yngland@berlin.de

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LBY: - Today when feed and disease costs have become much more important than labor, the ability to micromanage feeding schedules, take full advantage of well-trained, experienced personnel to observe and judge the behavior of our animals is becoming a very important component of production.

The second element is our “traditional less industrial” way of production.I feel we may be more aligned with what a growing segment of consumers are looking for: a better connection with where their food is coming from, how it is produced and by whom. Although our customers, large retailers, wholesalers and processors would like a more industrialized production, I believe that our consumers want one that is less so.

BFM: Can aquaculture help develop the southern European countries out of the euro-crisis?

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Closed-containment cages at sea could revolutionize global aquaculture. Smart capital is needed to solve the problems.

Preparing for the revolution.

Illustrations, opposite page: Aquafarm Equipment installs the prototype closed cages in Hardanger, April 201 3.

CLOSED RACE: After years of skepticism

towards other solutions than the traditional net cages, a large number of companies are now developing closed or partially closed solutions.

One of the companies is Aquafarm Equipment, based in Haugesund at the Norwegian West Coast, where the work is well underway with the construction of the prototype of a large closed sea cage.

In April 2013, the plant will be launched and towed to Marine Harvest's test license at Sk책nevik, Hardanger.

CEO Atle Presthaug at Aquafarm Equipment believes that the solution will eliminate

the problems with sea lice and escapes of fish. - We will take in the water at a depth of 30 meters, and release it through hatches at

SALMON ON THE RUN

15 meters. Since lice live no deeper than 1520 meters, we secure that no lice come into the facility. The system also ensures good flow-through, which is important for the fish to thrive and grow.

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Numberofescapedsalmon2001-2012

SOURCE: The Norwegian Directorate of Fisheries

ENVIRONMENTAL CHALLENGE:

The development work has been underway for three years, where Innovation Norway has contributed with NOK 8.4 million through the Environmental Scheme. Also, Uni Research at University of Bergen is a partner.

Presthaug states that all the sludge is collected

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ZERO LICE: In May 2012 another Norwe-

gian company, Akvadesign, based at Brønnøysund further north on the Norwegian Coast stocked 80 000 smolt into two closed sea cages. The result so far is zero sea lice. In two open cages close by, there has been proven much lice.

- It looks very good. We have no sea lice in the closed cages, although we are based in an area with enormous amounts of lice.

We believe we now have a product that is ready to be launched commercially, says CEO Anders Næss at Akvadesign, the company behind the solution, while subsidiary Akvafuture is responsible for marketing and sales.

The solution consists of a plastic tarpaulin placed inside an open net cage. The water is taken in from 25 meters deep, and through a system of pumps and inlet the water is put in rotation inside the plant.

Akvadesign is now testing out the system with bigger salmon.

- We think this will work well also for salmon from one to five kilo, but first and foremost the system is best suited for smolt production at sea.

Næss believes that the system elimin-

ates the lice problem, and is also well suited to prevent escapes.

- The plastic tarpaulin lies on the inside of a traditional cage. If there is a failure with the inner system, the fish is caught in the net cage.

Næss believes the price of the 3.000 cubic meter cage is competitive.

- The price is so far slightly above the price for conventional construction, but this is quickly compensated by eliminating the problem with sea lice and escapes.

INTERNATIONAL PROJECTS: A number

of international companies are working with closed or partially closed aquaculture methods at sea. Among these are the Institute of Technology and the company Plastsveis with a plastic tarpaulin called ClosedFishCage. The Company Feed Control has launched the closed cage system Ecomerden while the company Coast Innovation focuses on tanks of steel build on a larger floating frame.

The Company Future Sea Technology has launched Sea System 2, with large plastic bags at sea, while Botngård has developed a

BLUE FRONTIER MAGAZINE 2013

at the bottom of the tank and composted on land.

- We are trying to solve the industry's environmental challenges, also handling and utilization of sludge. This is an environmental friendly solution that will fit very well for smolt from 100 gram to one kilogram. We also think that the method is suitable for bigger fish.

The construction of fiberglass armed polyester is 40 meters in diameter and 20 meters deep. The size is in line with the most common traditional open net cages.

The plan is to test the system out 2014, but start already this year with commercial sale.

- The price is around NOK 1 million for 1000 cubic meters. It is somewhat more expensive than traditional constructions, but on the other hand you save a lot of money since you don’t have escapes of fish and don’t need to spend money on delousing.

Presthaug is aware that a number of other companies are working on similar solutions.

- But we think we've come far since we very soon have at sea full scale plant of 21,000 cubic meters.

16 PICTURES: 1 - The closed cages at Akvadesign, Bodø.

2 - Are Kvistad, The Norwegian Seafood Federation.

3 - Ragnar Tveterås, University of Stavanger.

4 - Geir Spiten, Akvatech. Photo: Gorm K. Gaare.

- We need to know more about the welfare of the fish.

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Are Kvistad, The Norwegian Seafood Federation.

plastic tarpaulin outside the top part of the cage to prevent lice.

Also, Canada's Agri Marine is investing big on closed solutions. The company has conducted successful tests at facilities in China and Vancouver, Canada. In November 2012, the company signed an agreement with the Norwegian private equity group Akvatech to advance the adoption of the company's closed containment fish rearing technology.

In Denmark and the U.S. the first onshore farmed salmon is now ready for sale, but communications director Are Kvistad at The Norwegian Seafood Federation does not believe such closed onshore facilities will threaten the Norwegian aquaculture industry - an industry that expects to export 1.2 million tons of fish in 2013.

- Deep Norwegian fjords with heavy flow-through along the Norwegian coast are well suited to producing Norwegian salmon in open cages in the future.

ELIMINATES CHALLENGES: The Norwe-

gian Seafood Federation represents the interests of 500 member companies, which

are expected to have a tremendous impact for feeding the world's population with fish in the future. Kvistad finds many of the closed or partially closed solutions interesting and thinks some of the new methods can help eliminate some of the challenges the industry has.

- The new technology solutions can eliminate the problem of lice, but we need better documentation that such systems are better to prevent cage-failures leading to escapes.

We also need to know more about the growth and welfare of the fish in such closed systems before it becomes commercially on a large scale.

Kvistad believes that closed-containment cages are of particular interest in environmentally vulnerable areas, like in the end of national salmon fjords or in areas with a huge number of sea lice.

- But my guess is that most of the production of farmed salmon for many years will take place in the open sea cages.

He believes that the new technology solutions around the sludge handling are even more interesting.

- There are absolutely interesting ideas

about how to handle the sludge, and make a business out of it, for instance to extract the phosphor for reuse.

GOVERNMENT SPONSORED R&D: To

bring forward new innovations like closed cages and technology solutions for sludge handling, a steady stream of risk capital is required. In Norway the public sector plays a significant role both in financing and conducting R&D, for instance through public research institutions and universities.

According to an article written by Frank Asche, Kristin Helen Roll and Ragnar Tveterås, many innovations within aquaculture are a result of R&D which has been financed by the public sector, and public sector represents over 50 percent of total R&D spending. The fish farming companies have historically played a less important direct role in conducting and financing R&D, while their role have been more to adopt innovations by the suppliers, like feed companies, equipment suppliers and pharmaceutical companies.

The total R&D spending amounts to around NOK 1.3 billion (2009). Looking at the

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- Smart capital to solve problems.

SMART CAPITAL: When Geir Spiten was

searching for capital to the startup company Akvatech, which develops closed containment cages, he chased private investors who could help him solve problems.- I'm dependent on smart capital, to help me to find the best solutions. You just have to realize that you cannot find them

alone, says Geir Spiten, CEO in Akvatech. The real job is to solve problems, not to sell a particular solution, he says.

According to Spiten, Akvatech recently raised NOK 15 million from private investors. The company has a partnership with Canadian AgriMarine, which includes licenses for AgriMarines technology used in closed containment cages. The plan is to have the first cage in water with fish in May, on Smøla, which is an island north of Kristiansund in the north western part of Norway.

The ability to combine capital and expertise was Spiten` s priority rather than seeking out public grant schemes.

- Initially, I have stayed away from public schemes. You have to spend a lot of time to substantiate your idea and do all the reporting stuff. And it would not get me the help I now get from investors, says Spiten.

Spiten wanted investors who can help him solve the challenges in areas such as engineering, manufacturing and logistics.

- Among the investors, there are people who knows manufacturing and has set up factories, shipping companies and shipyards

which have operations in many countries and people who knows technology, related to the materials we use in cages, like fiber and resin.

- We also got an oil trader who helps me with contacts in connection to sourcing and commodity purchases. Generally, it's about looking at the whole product and the life cycle, says Spiten.

- What about the players in the industry, are they potential investors in a project like this?

- They prefer to be demanding customers, and not owners of technology. I think it's healthy, because it contributes to technology development.

Text: KJETIL HAANES kjetilhaanes@gmail.com PER GJØRVAD per.gjorvad@oslobusinessmemo.no

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last 20 years, the R&D spending has doubled while sales has increased six times and production eight times, according to figures by Asche, Roll and Tveterås. As a consequence, the R&D intensity has decreased.

According to Asche, Roll and Tveterås, it is not realistic to expect the R&D intensity to rebound back to 1990-levels, which would have required a total R&D spending of about NOK 2 billion. The question is if it is possible to increase the R&D efficiency? It is probably necessary for the fish farming companies to play a more direct role when it comes to financing and conducting R&D. Bigger companies with sufficient human and financial capital have better conditions to take on a more direct role, according to Asche, Roll and Tveterås.

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How can the global aquaculture be expanded substantially?

What are the most critical challenges facing the ·fisheries and aquaculture?

How can sustainable exploitation of existing re·sources and pursuing new ones be achieved?

Blue Frontier Magazine talks to EU and political ·executives in some of the world’s leading nations for fisheries and aquaculture.

Challenged to decide the marine future.

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·

HOW TO ENSURE GROWTH: - The challenge today is how to ensure that aquaculture growth could be balanced and sustainable. In EU aquaculture output has been stagnating during the last years with administrative burden and limited access to space being seen as the main limits for further growth of the sector. It is therefore crucial to ensure a level playing field: producers should not be at a competitive disadvantage for respecting the necessary quality, health and environmental protection standards which are time consuming, says European Commissioner for Maritime Affairs and Fisheries Maria Damanaki.

- This simple message is important, for aquaculture everywhere. There is a significant potential for

increased aquaculture production, but we have to meet and reduce the environmental challenges in order to develop the potential that is there. FAO have recently developed Guidelines for aquaculture certification. In my view, those guidelines give a good guidance how to increase aquaculture production in a sustainable way, says The Norwegian Minis-

ter of Fisheries and Coastal Affairs Lisbeth Berg Hansen.

- The challenge is to ensure aquaculture growth is sustainably and socially well managed. We need to think about where aquaculture is located, the species grown, development of feed and new technologies, and the potential for closer links between aquaculture and traditional agricultural activities, says Scott Gallacher, Deputy Dir- There are chalector General, Resource Management & Prolenges to grammes, Ministry for aquaculture Primary Industries, New growth, but Zealand.

- To achieve its visones that I beion for sound aquacullieve we can ture development, Department of Fisherovercome. ies and Oceans has developed a comprehensive Scott Gallacher, Deputy Aquaculture Action Director General, MinPlan aimed at increasistry for Primary Indusing public confidence in tries, New Zealand.

19 Maria Damanaki (left), European Commissioner for Maritime Affairs and Fisheries and Lisbeth Berg Hansen, Norwegian Minister of Fisheries and Coastal Affairs.

Photo: The Norwegian Ministry of Fisheries and Coastal Affairs

the sustainability of aquaculture and to support competitiveness in international markets, says Keith Ashfield, Minister of Fisheries and Oceans Canada.

- Aquaculture can be expanded through advances in technology, better infrastructure, better education, and encouraging investment. Good governance, by both local government officials and industry, also has an important role to play. Improvements to planning and policy will help protect the environment as aquaculture production increases, says Joe Ludwig, The Australian Minister for Agriculture, Fishery and Forestry.

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CRITICAL CHALLENGES: - With the current economic climate, the most critical challenge for New Zealand is improving the economic performance of the fisheries and aquaculture sectors while ensuring sustainability. For the New Zealand seafood industry, key challenges are addressing growing market interest in supply chain integrity, attracting a market premium for a greater proportion of seafood exports, and demonstrating socially-responsible and environmentally-sustainable business prac-

- The challenge for aquaculture is to ensure the sustainability of stocks.

aquaculture in open marine environments is a continual challenge, but we are continuing to examine methods that helps minimise the risk of disease, says Joe Ludwig, Australia.

- It is of key importance that all interested parties work together to manage fisheries resources sustainably, to protect marine eco-systems, to fight illegal, unreported and unregulated fishing as well as to address fleet overcapacity. The challenge for aquaculture is to ensure the sustainability of stocks, especially for stocks that are used for feed production to improve competitiveness and to Commissioner Maria Damanaki, European ensure a better access to Commission. European markets, says Maria Damanaki, European Commission. tices, says Scott Gallacher, New Zealand.

- Our oceans and the fishery resources - The most significant challenges to inthey contain are under pressure from many creased aquaculture production are competifactors, including: Increasing global demand tion from imports, possible impact on the for seafood, new fishing technologies that environment, and disease. The health of

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have made it easier to catch large quantities of fish, illegal, unreported and unregulated fishing - in domestic and international waters, fisheries management that varies in effectiveness from region to region, destructive fishing techniques, climate change and pollution that is disturbing marine ecosystems and affecting the health of fish and other marine species, says Keith Ashfield, Canada.

- In the short term, the major environmental challenges are sealice on wild fish and farmed fish escaping. In the longer term, issues like feed supply, site structure and farming technology will be important. The future challenge for capture fisheries is to secure a sufficient basis of scientific knowledge to

ment structures, coupled with a high-quality research and monitoring regime to inform robust management decisions. It is acknowledged that information about sustainability can lag SUSTAINABLE EXPLOTATION: - Sustainbehind the development of a new fisheries able exploitation requires sound manageresource. In this instance an adaptive management approach is required. Fishing exploitation rates - The health of need to be constrained aquaculture in until there is sufficient confidence about the open marine envirstate of knowledge of onments is a conthe resource, says tinual challenge, Scott Gallacher, Deputy Director Genbut we are coneral, Resource Mantinuing to examine agement & methods that Programmes, Ministry helps minimise the for Primary Industries, New Zealand. risk of disease.

- We rely on the latest scientific data Joe Ludwig, Minister for and the resulting sciAgriculture, Fisheries and entific peer-reviewed Forestry, Australia. harvest sustainably within low levels of ecological footprints, says Lisbeth Berg-Hansen, Norway.

21 Picture: From the production line at Bakkafrost in Thorshavn, Faroe Islands. Photo: Kjetil Haanes.

- We rely on scientific data and the resulting peerreviewed advice.

The Honourable Keith Ashfield, Minister of Fisheries and Oceans Canada.

Keith Ashfield, Minister of Fisheries and Oceans Canada.

- The Norwegian government has a clear ambition: Norway should be the world’s foremost seafood nation. We must improve management regimes for key fish stocks.

Through sustainable management of the capture fisheries and rebuilding of stocks, it will also be possible to increase production from the wild stocks. We have to increase the production from aquaculture, and we must use more raw materials from wild fisheries and aquaculture. This will help to increase the production of seafood, and thereby ensure more sustainably harvested food for the world’s growing population. Today, Norway exports 33 million sustainable and healthy seafood meals every day, The Norwegian Minister of Fisheries and Coastal Affairs Lisbeth Berg Hansen.

- In Australia, Ecosystem Based Fisheries Management (EBFM) applies to our fisheries.

This method takes a holistic approach to the interactions of fishing activities with the whole ecosystem, including habitats and non-target species. The productivity of target species can be maintained through the

application of EBFM environments, says Joe Ludwig, The Australian Minister for Agriculture, Fishery and Forestry.

- The EU is one of the very few major players with a strong presence in all of the world’s oceans, through its fleet and investments, bilateral agreements with third countries and participation in most of the Regional Fisheries Management Organisations. In addition, the EU is the biggest importer of fisheries and aquaculture products.

We see it therefore as our key responsibility to promote sustainable fishing globally, in line with our internal principles and standards. I have taken that commitment very strongly to the proposals for the Common Fisheries Policy reform, which are currently under negotiation, and both the Member States and the European Parliament accept and support this approach on the international dimension, says European Commissioner for Maritime Affairs and Fisheries Maria Damanaki.

Text: INGRID SCHIEFLOE ingrid@oslobusinessmemo.no

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advice to make important decisions for the sustainable management of Canadian fisheries. In our decision-making, we consider the effects of the fishery on various components of the ecosystem. Enforcement and monitoring also form part of our sustainable management approach. We spend approximately $130 million annually on monitoring, control and enforcement across the country. As well, healthy and productive ecosystems are vital to the sustainability of aquaculture in Canada. Informed by science, Fisheries and Oceans Canada and other federal, provincial and territorial government partners establish the regulations, policies and standards on which to control the environmental effects of aquaculture operations and protect the health of farmed fish and shellfish. Canada’s aquaculture industry must operate in a manner that ensures environmental sustainability. Indicators to measure the performance of the industry in ensuring healthy ecosystems and healthy aquatic animals are presently under development as part of the Aquaculture Sustainability Reporting Initiative – a collaborative activity between industry, governments, and other interested groups, says

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- The smell in the streets of this inland city is from steaks, wurst, schnitzel and kebab, writes Dag Yngland from Berlin.

Kenneth Gjerrud, the chef of “Munchs Hus” in Berlin. Photo: Gorm K. Gaare.

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- And of course you should eat more fish, my doctor tells me.

As if it was some sort of medicine. She has been saying this for years.

- Of course, I answer - as always. If I can find one...

I know all about the vitamins, the minerals, the healthy fat. The taste. Yes, fish is good for you. As a Norwegian I grew up with it. But where can I catch it, buy it, cook it? Now, that I live in a country where meat is king?

I´m not a little fisherman any more – as I was in my childhood days on the coast of Norway. I now live in Berlin – capital of Germany in the middle of Central Europe. Here, a lot of people still eat fish only once a year – for Christmas.

The smell in the streets of this inland city comes from steaks, wurst, schnitzel and kebab. Meat is everywhere. Although the consumers in the biggest European food market are known for their concern for the environment and their fear of food scandals, most of them don´t change their behaviour. When the bad news are gone it´s back to the wurst - whatever is in it.

The consumption of meat in this country has quadrupled during the last 100 years with high costs for health and enviroment as a consequence. Every German consume on average more than 1094 animals during their lifetime, 945 of them are chicken – which shows there is a desire for lighter food.

There are many big inland cities like this in the world. Between Berlin and Bejing.

Fear of fish?

From Buffalo to Buenos Aires. Many have a “Fear of fish”. Fear of cooking it wrongly and get the blame for it. Fear of the fish not being fresh – a question rarely asked about chicken or beef. Fish still is something fishy for people who have no experience with a fjord, a lake or a river.

- Fish dishes must be sold as a positive experience.

Something to enjoy. Something exiting, says Kenneth Gjerrud, the chef of “Munchs Hus” - Germany´s only Norwegian restaurant.

Gjerrud has about 7-800 guest a day in his restaurant and a bistro in the Nordic embassy building. About 80 % of the guests come there to eat fish. Regulars come to enjoy their salmon and halibut – and even fall in love with the scary ones like the wolf- and monkfish.

The fresh and crispy Nordic cuisine has lately become famous through the restaurant Nemo in Copenhagen – voted the best in the world for three years in a row by “Restaurant Magazin”.

- When I started a decade ago the local press wrote that there is Dag Yngland is no Nordic cuisine. They don´t do an European that now, says Gjerrud and smiles. journalist Yes, indeed, the times might be based in Berlin. changing. At my last visit to the doctor she asked ME if I knew a good dag.yngland fish restaurant.

@berlin.de

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BlueFrontier

MAGAZINE

Last page Picture: Rita Westvik runs her own company, FUTURAMA (foresight, innovation, communication). She also works as a facilitator in Memetor. For ten years she was senior adviser at SINTEF Technology and society.

Westvik has also spent many years working with politics and has a broad background from media.

Rita Westvik.

A TURQUOISE FUTURE? : - Maybe we are at the beginning of a

blue-green revolution; heading for a turquoise future!? Rita Westvik says rhetorically when she is asked about expansion, challenges and exploitation of fisheries and aquaculture.

Rita Westvik is working with innovation, foresight, entrepreneurship, FEED (food and energy eco dynamics), communication and sustainable tourism. She has unique knowledge about the industry at a foresighted big picturelevel from designing and hosting several conferences in the field of innovation and aquaculture.

HOW TO ENSURE GROWTH: - In the field of

SUSTAINABLE EXPLOITATION: - I believe that we humans are

born with a capacity to work with nature and I hold there is room for abundant living for all, provided we take direct responsibility

Dare to share!

feeding rapidly growing populations we must be open-minded, brave and increase our skills to navigate and innovate. Fast. My brief way of describing our present times is shifts happen!

- I hold that it is not knowledge per se, but foresight, navigational skills and brave action that are the most decisive ingredients in a strategy for expansion in the field of aquaculture, Rita Westvik says.

For many years she has been engaging in developing radically new methods for producing both agri-and aqua-based food in closed environments.

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impact the world’s ocean habitats in near future. In a dystopic future perspective; guess who’s not coming for dinner? The fish that used to live in wild will no longer exist, Westvik says.

CRITICAL CHALLENGES: - The rate of change is accelerating. In

fact we live in the age of hyper-change. If you think things are changing fast now, you haven’t seen anything yet. Entire new industries and technologies unheard of only a few years ago are now normal parts of our lives. It’s difficult, but necessary to keep up with new and disruptive developments and to try to understand their implications.

Influential scientists warn us; we may have reached the tipping point.

A “deadly triad” of pollution, overfishing and climate change will

for deep and radical change, Westvik says.

- Nothing is more radical than local, regenerative food, water and energy projects based on new mental, political and technological models, already under development and testing. Analyses show that more food production means more ecological impact, but that compared to other forms of animal protein production such as livestock, aquaculture is more efficient.

- Maybe we will need to change both our eating and production habits. We must establish a global approach and business leaders must establish a new bottom line, including both financial, social and ecological capital, Westvik says.

MESSAGE TO THE INDUSTRY: - Dare to share! Act now! Explore

new frontiers! Engage polititians, media and the creative and scientific community to develop solutions for the future of food production in an ecofriendly manner, also in urban environments.

And: Empower and engage women and youth! Rita Westvik says.

Text: INGRID SCHIEFLOE ingrid@oslobusinessmemo.no