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2015 REVIEW LEGASEA - NORWEGIAN BIOMARINE RESOURCES


LEGASEA – THE BLUE MARINE CLUSTER The Møre region represents one of the most complete clusters within marine ingredients in the world, covering all functions in the value chain from fish resource to customer, and it has developed a close collaboration between industry, suppliers, university and research institutions. Legasea has set itself the goal of becoming a global power centre for the production of sustainable marine ingredients that promote health, based on working up trimmings from fish processing, and bio-mass which is not used as food.

In 2013 Legasea was granted the status of a “Norwegian Innovation Cluster” under

the Arena programme. The results of the collaboration appeared sooner than expected. Making use of trimmings in this way will improve sustainability and the creation of value throughout the marine food industry.

Legasea started out with 23 members, to sort out the strategic important elements to

establish new value chains. The cluster has now reached a point where it is natural to move to the next level, and wishes to invite more members to join in 2016. In Møre there are around 500 companies associated with marine foods, representing an annual turnover of around NOK 38 billion (cf. graph at top p.9).


The results of the collaboration appeared sooner than expected. The cluster has now reached a point where it is natural to move to the next level.

ODDVAR SKARBØ PROJECT MANAGER LEGASEA

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Biomarine industry in Møre

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Norway can take a global position within marine ingredients

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The curves point upwards

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Interview - Leif Kjetil Gjendemsjø, Pharma Marine

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We must exploit the blue ocean opportunities

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Interview - Tormod Thomsen, Firmenich

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Sustainable development

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24-hour quality control

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Interview - Tore Roaldsnes

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Marine proteins and peptides

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Management and focus

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Focus Areas

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Campus Ålesund

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Åkp

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Summary

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Funding

2015 REVIEW Design ELLE mELLE, Photo Kristin Støylen, Text Stein Lauritsen


LEGASEA INDUSTRY MEMBERS: HC Omega3 HC Protein Ingredients Vikomar

Fish oil / fish meal Raw material suppliers in the project Marine businesses - potential Legasea members

Molde Pharma Marine

Brattvåg Nordic Wildfish

Ålesund

Orkla Health/Denomega

Marine Ingredients

Br. Sperre Strand Sea Service Vartdal Havfiske / Eros

Rimfrost

FMC/Epax

Havfisk

Marine Harvest

Vedde

Firmenich Bjørge Biom.

Fosnavåg

Berg LT

Vital Seafood

Ørsta Arctic Nutrition Marine Harvest

Møre represent the most important seafood region in Norway

Stranda


istiansund

GC Rieber Oils Fortuna Oils

BIOMARINE INDUSTRY IN MØRE • Norway is no. 2 nation globally within seafood export. • Møre represent one of the most important seafood regions globally (some 650.000 tons yearly). • Møre represent one of the most complete clusters within marine ingredients globally, with major players like Firmenich (proteins/peptides) and FMC/Epax (lipids/omega3) • Møre hosts some 500 companies within the marine sector. The potential for value creation within marine ingredients is huge.

Norwegian Sea Sweden

Norway

North Sea United Kingdom

Poland Germany


MARINE INGREDIENTS ÅKP - LEGASEA 7

ENVIRONMENT/ BIOECONEMY 100 % UTILIZATION

SUSTAINABILITY

LEGASEA LIFESTYLE DISEASES

MARINE INGREDIENTS

VALUE CREATION OF MARINE BIOMASS

Global challanges, national possibilities

NORWAY CAN TAKE A GLOBAL POSITION WITHIN MARINE INGREDIENTS The world is faced with enormous challenges, two of the most significant being climate change and population growth. OECD states the world population will increase from the current 7 billion to 9.5 billion by 2050. Today 2-3 percent of the world’s food comes from the sea. This figure must increase substantially, to meet demands of proteins and environmental measures. On a global perspective, health problems caused by lifestyle are increasing dramatically. According to the World Health Organization 38 million people die of lifestyle diseases every year. Legasea is certain that Norway can contribute to solving some of these global challenges by further developing our position as a superpower within seafood and marine nutraceuticals.

DOCUMENTED HEALTH BENEFITS Health benefits from omega-3 are documented in more than 24,000 published articles. The fatty acids are important for the development of the brain and sight, and prevent cardiac and vascular diseases. Documentation for further health benefits will occur. With regard to marine proteins, research has shown that they also will be highly significant for human health and the world’s health budgets. Legasea is currently cooperating with companies and trusts concerned with research and documentation to obtain public approved health claims, which will imply market game changers.


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Diabetes Digestive health

PROTEINS

Obesity Sarcopenia Cardiovascular health Brain development

LIPIDS

Vision Anti-Inflammatory Marine ingredients have well documented health effects

BACKGROUND • The world population is projected to increase to 9,5 million people in 2050 • Lifestyle diseases and malnutrition is a growing global problem • Norway needs to convert from an oil economy to a bio economy • Current food production is not sustainable

Today some 250 thousands of tons of marine biomass are not being utilized for high-value products. Marine ingredients consist of lipids (mainly omega-3) and proteins (mainly fishmeal). The large quantities of offal and bycatch from fishing and aquaculture can be used to produce effective nutraceuticals. Our goal is 100 % use of produced marine biomass.

TRACEABILITY AND VALUE CHAINS Marine ingredients are subject to strict demands for traceability and documented origin, which give Norwegian producers a competitive advantage. Most Norwegian-caught white fish is MSC-certified, and the value chain from sea to oils and proteins is short and transparent. Qualified calculations show that marine ingredients could represent an increase in value creation from the current NOK 5 billion to NOK 70 billion in 2050 (see page 15). In addition will the 100 % use of produced marine biomass improve value creation and reputation of the entire seafood industry.

5,9

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CARBOON FOOTPRINT

2,9

Measured as KG CO2/KG edible part at slaughter

SUSTAINABILITY AND 100 % UTILIZATION OF MARINE BIOMASS At the same time, Norway is faced with economic readjustment, from an oil based economy into bio economy, as sustainability and environment are crucial factors. Compared with other sources of protein, fish has limited carbon footprint. Consumers and global distributors are demanding documented sustainability from their suppliers.


MARINE INGREDIENTS ÅKP - LEGASEA 9

THE CURVES POINT UPWARDS LOOKING AT THE LEGASEA COMPANIES, THERE IS POSITIVE DEVELOPMENT IN TURNOVER AND PROFITABILITY. DURING 2013 A GROWTH BY 16 % AND 2014 BY 10 % TOOK PLACE. THIS DEVELOPMENT ATTRACTS INTERNATIONAL INVESTORS.

GROWTH The report “Value created from productive oceans in 2050” states that the Norwegian marine ingredients industry will generate turnover for NOK 70 billion (see p. 15). This assumes an annual growth rate of 7%. In the last two years the industrial members of Legasea have shown growth rates of 16 % and 10 % (fig bottom left p.9). Naturally, the figures will vary from year to year, from one company to another and between different markets, but we are clearly on track. The most impressive growth figure among Legasea companies was achieved by Pharma Marine – with an increase of 66 % in 2014 over 2013 (fig bottom right p.9) The total results before tax for Legasea companies have developed in a positive direction in recent years (fig bottom mid p.9). The great leap from 2013 to 2014 is quite unusual, and due among other things to good prices for the fishing boat operators in Legasea, with Havfisk in the lead. However, the companies producing ingredients only, such as Vedde, Pharma Marine and Firmenich, showed solid improvements on the bottom line. Even though growth has not been strong recently in the largest market for omega-3, the USA, there is considerable growth in other markets, in China for instance. The global megatrend is for investments in personal health to increase. With far more than 90% of production going to export, both the marine food industry and ingredients industry clearly target the global markets. At the same time, international competition is increasing in parallel with market needs. Many countries are running major national programmes, aiming at leading positions in marine ingredients. The Norwegian ingredients industry is not backed by any major national investments as we face this competition. On the other hand, Norway has an excellent reputation, which is certainly an advantage as a good starting point.

CREATION OF VALUE Some interesting comparisons have been made by Professor Ragnar Tveterås, who was responsible for the Norwegian Official Report (NOU) on the framework conditions for the marine food industry from the perspective that resources from fish should be used in ways that create the highest value throughout the value chain. The graph (mid p.9) shows that the growth in value creation is far greater in the marine food industry than in any other Norwegian industry, including the oil sector. A high-value analysis of the trimmings from the marine food industry will help to raise this creation of value from Norwegian marine biomass even further. Few other industries, if any at all, have greater potential in the Norwegian transfer from an oil economy to bio-economics.

Norwegian marine ingredients industry will generate turnover for NOK 70 billion in 2050. This assumes an annual growth rate of 7%. The growth rates of industry members of Legasea were 16% in 2013 and 10% in 2014.


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YEARLY TURNOVER (BILLION NOK) 2015 & 2016 = ESTIMATES

Marine businesses in Møre Legasea members

45,0 40,0 35,0 30,0 25,0 20,0

42%

15,0 10,0

15%

5,0 0,0

2013

2014

2015

2016

Legasea started out with 23 leading members in 2013, to catalyze fruitful processes to develop new value chains. During 2015 this goal was acieved. In 2016 it is time to move to the next level.

RELATIVE DEVELOPMENT OF VALUE CREATION 1 000 Seafood industry. (Marine ingredients industry only partly included, due to difficult NACE codes)

900

Oil and gas industry Mainland industry in general, service business included

700 600 500 400 300 200 100

2009

2008

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2006

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0 1980

The graph shows the relative development of value creation in selected industries in Norway 1980-2009. (Index year 1980=100%) Source: Professor Ragnar Tveterås, UiS

PHARMA MARINE TURNOVER

66

109 2014

+52%

2013

Mill. NOK

+66%

43

529 2014

403

+10%

120 100 80 60 40 20 0

2012

+31%

2013

6186 2014

5613

600 500 400 300 200 100 0

368

+10% +16%

2013

000 000 000 000 000 000 000 0

4836

7 6 5 4 3 2 1

LEGASEA INDUSTRY BOTTOM LINE (EBIT)

2012

LEGASEA INDUSTRY TURNOVER

2012

Index (1980=100)

800


MARINE INGREDIENTS ÅKP - LEGASEA 11

“TOGETHER WE HAVE CREATED A PROFITABLE NORWEGIAN VALUE CHAIN”

ON BOARD THE HYPER-MODERN TRAWLER FT HAVSTRAND THE CATCH IS EXPLOITED 100% INTO FROZEN HEADED AND GUTTED FISH, FISHMEAL AND OIL. THE OIL GOES TO LEIF KJETIL GJENDEMSJØ AND PHARMA MARINE AS. WHAT FOLLOWS IS A STORY OF HOW NOTHING IS LEFT TO CHANCE.

“Raw oil,” observes Leif Kjetil, looking over the cargo of newly unloaded cod oil. “Once we have refined it into concentrated Omega3 oil, it will be branded CodMarine® and distributed round the world in 190 kg drums. It will then be packed in capsules or small bottles and sold to health-conscious customers who know what they are looking for.” REAL STUFF, PROVIDED BY HONEST PEOPLE “But it must be made from cod. Why cod?” “There are several reasons. Cod as a species is caught exclusively for human consumption, which guarantees good handling and top quality raw material. Secondly, cod has a good combination of the important fatty acids EPA and DHA. “Cod-liver and cod-liver oil have been known to be good for the body and health for a thousand years. Perhaps noone knew why or how, but they knew. Refining and exporting fish oil have given rise to huge fortunes up and down the Norwegian coast. This story is well-known and true, so


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DID YOU KNOW? FISHING TRAWLER HAVSTRAND • Total catch per year: 9,000 t • Weight of frozen H/G fish: 6,500 t • Weight of trimmings: 2,500 t • Weight of fishmeal: 500 t • Weight of oil: 100 t • Weight of water removed in production of fishmeal and oil: 1,900 t

become so important that the big supermarket chains will not look at your product if you don’t document its origin and genuineness. Consumer power is enormous.”

we can make use of it. We now have solid documentation of the effects of fish oil on humans, and future research will bring even more to light,” says Leif Kjetil. He continues: “We have another true story, this time about sustainability and traceability. It is widely known that Norwegian cod fishing is subject to strict quota restrictions based on knowledge of the size of the cod stocks. The trimmings are also used, so that none of this important resource goes to waste. Pharma Marine supports MSC - The Marine Stewardship Council – and is allowed to use the blue Ecolabel on its CodMarine. It shows that the product is based on sustainable fishing, which means a lot to our end-customers. And then there’s traceability. We highlight the fact that our raw materials come from the FT Havstrand, which people can follow on Marine Traffic 24 hours a day. Our distributor in the US has a link on its website. The ship is active at its permitted location, with full transparency. Traceability has

A COMPLEMENTARY MARKET-DRIVEN VALUE CHAIN This is the essence of the cooperation between FT Havstrand and Pharma Marine AS. The two complement each other in creating products for which there is a willing market. Leif Kjetil Gjendemsjø is convinced of the importance of this kind of cooperation. “Building a ship like the Havstrand costs lots of money. 100% exploitation of raw materials provides the owner with higher revenues and more avenues for distributing costs. Pharma Marine wins with a traceable first-class raw material which gives added product value. Globally, it is important that nothing is wasted, and that fuel consumption and emissions are proportionate to overall use value and value creation. “For those of us in this venture, it means a lot that we have been able to create a 100% Norwegian value chain. “This is clearly one of the benefits of cluster cooperation. Our collaboration with Havstrand is nothing unusual within the cluster.” “They say that no-one wins the world championship on their own.” “That’s quite right, and our ambition is for the region to become a global focus for the development of high-quality marine bio-products.”


MARINE INGREDIENTS ÅKP - LEGASEA 13

“Norway has a potential to develop three global knowledge hubs. A global maritime-offshore knowledge hub, a global petroleum-renewable energy knowledge hub and a global seafood-marine resource hub. Norway’s global positions are in maritime and marine.” Professor Torger Reve, BI Norwegian Business School


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WE MUST EXPLOIT THE BLUE OCEAN OPPORTUNITIES Norwegians proximity to the sea has for generations inspired new thinking and innovation, which have given us leadership in many areas: navigation, off-shore oil service, underwater operations, development of ships and ship equipment, fishing, fish farming and marine ingredients. When Norway is to pull out of an oil economy, it seems very obvious that we need to transition to bio-economics – and chiefly to marine bio-economics.

We are at ease with the ocean, we have the expertise and technology and we are able to cover more of the world’s requirement for proper nutrition in a sustainable manner. It is a matter of harvesting stocks responsibly on a foundation of research, more farming of fish and marine animals, the cultivation of seaweed and – at the heart of it all – 100% exploitation of produced biomass.


MARINE INGREDIENTS ÅKP - LEGASEA 15

MØRE REGION AS GLOBAL HUB FOR MARINE INGREDIENTS The region is currently a major centre for fishing and marine ingredients and an important factor in fish farming. A number of players work together through the LEGASEA business cluster. The cluster represents complete value chains, and is working to create even more of them. For local and global companies to work so closely towards shared goals is unique. At the same time, the Møre Region is a leader in the development, construction, equipping and operation of

O R WAY

MARINE INGREDIENTS FOR NOK 70 BILLION. Marine ingredients consist mainly of lipids (oils – chiefly Omega-3) and proteins (fishmeal or liquid concentrate). These are in large measure produced from the trimmings from wild-caught and farmed fish. Norway, and the Møre region in particular, are currently world leaders in turning trimmings into high-value products. With a higher degree of harvesting, farming and cultivation, the working party calculates that the amount of trimmings will increase from 0.9 million tonnes in 2010 to 4.4 million tonnes in 2050. In the same period, value creation in the marine ingredients industry is expected to increase from NOK 5 billion to NOK 70 billion.

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ENORMOUS POTENTIAL The Norwegian sea-based economy recorded turnover of NOK 90 billion in 2010. A working party set up by the Royal Norwegian Society of Science (DKNVS) and the Norwegian Academy of Technical Science (NTVA) calculated a potential of NOK 550 billion by 2050 (see diagram opposite). Development is driven by markets but contingent on expertise and technology. This gives Norway special advantages in the race to become a global seafood-marine resource hub.

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Per Sandberg - Norwegian Minister of Fisheries

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“MADE IN NORWAY must be the aim”

advanced ships. These industries cooperate in the busisiness cluster Blue Maritime, with its status as a Global Centre of Expertise. Both clusters are organised as part of the competence and innovation company Ålesund Kunnskapspark (ÅKP/ AAKP). Proximity and cooperation between clusters is vital, for instance when a value chain starts life on board a fishing vessel. Here it is important that the treatment of trimmings is integrated in the handling of the catch and on-board production in order to achieve the optimum quality, efficiency and use of space. In this context, ship designers, ship owners and equipment suppliers are all important for producing Omega-3 and proteins. In total, the sea-based industry at Møre has an annual turnover of about NOK 100 billion. Few if any other regions in the world can match this. RESEARCH AND EDUCATION ARE IN PLACE The Møre Region also has a close cooperation with educational and research establishments. Marine and maritime subjects are offered in secondary schools, technical schools and technical universities. Since 1 January 2016, the Technical University of Ålesund has been part of the Norwegian University of Science and Technology (NTNU), Norway’s largest university. This will have positive consequences for both education and research in the relevant areas. Møreforskning Marin, a company managed from Ålesund, is involved in several research projects, including cultivation and drying of macro-algae to produce high-quality proteins.


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“Bioeconomy is all about developing new knowledge and new value chains. It is advanced industrial exploitation of marine biomass and rest raw material. Within this field there are opportunities I strongly want to contribute to take to the next level.� Per Sandberg

The newly appointed Minister of Fisheries Per Sandberg visited Legasea , Firmenich and Nordic Wildfish 13 January 2016.

600

NORWEGIAN MARINE VALUE CREATION 2050

500

Sea farming

Billion NOK

400

Suppliers

300

Marine ingredients Wild catch

200

Algae

100

Others

0 2010

2030

2050


MARINE INGREDIENTS ÅKP - LEGASEA 17

MAJOR SWISS GROUP OPTED FOR NORWAY AND LEGASEA THE SWISS FIRM FIRMENICH IS ONE OF THE WORLD’S LEADING FLAVOUR HOUSES, SUPPLYING FLAVOUR AND FRAGRANCE INGREDIENTS FOR THE FOOD AND COSMETICS INDUSTRIES WORLDWIDE. THE GROUP’S SUBSTANTIAL INVESTMENT IN MARINE INGREDIENTS WITH HEALTH BENEFITS IS CONTROLLED FROM ELLINGSØY, NORWAY.

Firmenich acquired Bjørge Biomarin AS in 2002 in the light of solid knowledge of the following global trends: in the rich world people were becoming increasingly aware of the food they were eating, while there was increasing interest in sustainable ways of covering the protein requirements of a growing world population. Marine bio-lipids (oils) and fishmeal proteins have an enormous potential. General Manager of Firmenich Bjørge Biomarin and Director Global Category Seafood, Tormod Thomsen, explains why Norway is so important: “Expertise, sustainability and ethics,” he says, without a moment’s hesitation. “In Norway, and especially the Møre region and among members of Legasea, people understand the whole value chain and have tremendous expertise in creating high-quality products from trimmings from sustainable fisheries. Norway also has strict quota regimes and well-regulated working conditions in all areas of working life. Firmenich’s customers include global companies who are very insistent that all raw materials and production can be traced and documented. Only the most scrupulous suppliers can be accepted.”

Firmenich spends SFR 300 million – 10% of the Group’s turnover – on research and development. Most of this is related to the future needs of a world facing new challenges.

LIFESTYLE DISEASES AND BASIC NUTRITION “It is well known that marine oils and proteins are good for health, but isn’t that just a fad in the industrialized West?” “In 2050, there will be 9 billion humans on the earth. By that time, we will not just be thinking about health; there will be a huge protein deficit. Meat consumption will no longer be sustainable and the world’s fishing resources will be under pressure. A large part of the world’s population will be surviving on relatively low-nutrition maize or rice. One of the avenues being researched today is whether marine proteins from trimmings can be used to supplement this diet. If the answer is yes, and we can extract even more of this raw material, we will be moving in the right direction.”

GLOBAL COMPANIES IMPORTANT IN ESTABLISHMENT OF NEW MARKETS “Your company is the dominant member of Legasea. Do you enjoy benefits which other, smaller companies are unable to achieve?” “Establishing new markets and commercializing new products can be hard work and time-consuming. Firmenich has long-term customer relations and on-going dialogues with several of the world’s food giants. If we can provide new products and create volume, it will be much easier for our smaller colleagues to achieve success with equivalent products for other customers who also want a slice of the cake. This is a global arena after all. There are commercial opportunities for us all,” Thomsen concludes.

STRONG FAITH IN MARINE PEPTIDES Mr. Thomsen explains that Legasea is focused on developing products and areas of application which can be scaled up to meet the world’s rising demands. “Products based on marine peptides come into this category. It is well known that their anti-inflammatory properties are beneficial for people with stomach and digestive problems. New research is investigating the ability of marine peptides to stabilize blood sugar levels, provide feelings of fullness and, not least, to counteract sarcopenia – the muscle loss that comes with aging. Sarcopenia is part of the normal aging process, and one of the main causes for falls in elderly people.” Research of this type to produce scientific documentation is crucial, as all health benefits of ingredients and dietary supplements need to be documented. (See article on page 24).


DID YOU KNOW? FIRMENICH • Established 1895 • Family owned • Group turnover: 3 bn SFR (2015) • No. of employees 6,000 • Manufacturing: 28 sites • R&D centres: 4 • Global presence: 63 countries, 100+ markets


MARINE INGREDIENTS ÅKP - LEGASEA 19

SUSTAINABLE DEVELOPMENT

7 OUT OF 10 VESSELS WHICH PROCESS BYPRODUCTS ON BOARD ARE LEGASEA MEMBERS, WITH A HOME BASE AT MØRE.

Consumer groups have a particular responsibility for the enormous impact of the idea of “sustainable development”. We all remember the case of palm oil. ‘Production is destroying the rain forest, and anyway the product is bad for your health,’ the saying went. Consequently, traders refused to distribute it, and within six months, food producers were well on the way to replacing palm oil with other solutions. The demand for sustainable development is a global trend, which is closely followed by large international businesses. Besides, the big consumer groups are not just content to make demands. They are also willing to pay more for sustainable products with a documented life cycle. As a result, documented sustainability has become a significant sales argument all over the world. The Paris climate deal will only reinforce this development. We have seen how production of marine ingredients based on trimmings is contributing to sustainable development.


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The most frequently quoted definition of “Sustainability” is from “Our common future”, also known as the Brundtland-Report (1987).

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ENVIRONMENT: Much of the trimmings from Norwegian seafood production goes for further processing. The majority of this biomass goes to production of feed for fish and livestock. Nevertheless, 250,000 tonnes of white fish trimmings from on-board production in sea-going fishing vessels are flushed out to sea. This biomass is a valuable resource and a focus area for Legasea. Seven out of ten vessels which process byproducts on board are Legasea members, with a home base at Møre. Advanced factory plants can convert 100% of the trimmings into high-value products. And optimum use of resources is an important environmental measure. All Norwegian fishing for white fish is MSC approved. The vessels are designed and equipped for low fuel consumption and reduced emissions. Legasea members cooperate closely with the maritime cluster at Møre, which is a world leader in the development of environmentally friendly ships.

SUSTAINABILITY VIABLE

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ECONOMY: Handling and exploiting trimmings on board ship requires a significant investment. The production of ingredients for animal feed has barely justified these investments, which is one of the reasons why so much raw material has vanished overboard. The profitability of producing marine ingredients for human consumption is far greater, despite the higher investment. We are convinced that this profitability will lead far more vessels to think afresh, so considerably less of the trimmings will be lost. Higher profitability also means that fishermen can keep up with developments and replace their fleets with more environmentally friendly ships, making even better use of raw materials. SOCIAL: Research shows that seafood is valuable for health in many ways. It has also been demonstrated that even Norwegians have a lower intake of essential substances than the authorities recommend. Eighty per cent of them should be taking a dietary supplement based on marine ingredients. In some parts of the world, the need is far greater. Legasea is working to ensure that far more of the marine biomass goes to human consumption in the form of dietary supplements and food ingredients. This will have a positive effect on human health and quality of life in countries at many different levels of development.


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24-HOUR QUALITY CONTROL EUROFINS SCIENTIFIC IS A WORLD LEADER IN CHEMICAL, MICROBIOLOGICAL AND SENSORY LABORATORY ANALYSES. THE GROUP HAS 20,000 EMPLOYEES IN 39 COUNTRIES, BUT WHEN IT DECIDED TO FOCUS ON MARINE INGREDIENTS, ÅLESUND AND LEGASEA WERE A NATURAL CHOICE FOR FURTHER DEVELOPMENT.

Natalia Rønneberg Dahl is Key Account Manager for Eurofins Food & Feed Testing Norway AS. The company provides a variety of services to member enterprises in Legasea, but at present the greatest interest is in NIR analyses – Near Infrared Spectroscopy – based on the reflection and absorption of near-infrared radiation. Analyses are performed with a small device at the companies’ premises, and results are ready within a couple of minutes. We met Ms Dahl in the Processing Bay at Vedde AS, producers of fish oil and fishmeal, and asked her to explain: “The NIR instrument is ‘trained’ to analyse different nutrients in a given material by calibrating the instrument on the basis of chemical analyses. Whenever a sample of oil or fishmeal is tested, the result of the analysis is instantaneously checked against Vedde’s own calibration data, which is stored on a Eurofins server in the USA. If the operator at Vedde receives a non-conforming test result, this is confirmed almost simultaneously by the server, and the operator is able to adjust production or take other action immediately.” “So what is being measured?” “With fishmeal, it’s normally water content, protein content, fat and ash. With oil, we measure the contents of EPA, DHA, total Omega-3, glycerides, ethyl esters and antioxidants. This reflects the quality requirements demanded by the LEGASEA companies’ customers.”

Ola Dybvik, CEO of Vedde AS, is keen to build up experience with NIR: – “We test our production continuously and get the results back straight away. Bear in mind that the processing industry operates 24 hours a day. Previously, we had to wait for the laboratory to open, and chemical analyses took time. Now, the process operators can run NIR analyses at any time of day and are able to correct production as they go. “This allows us to integrate our quality control and production management, and achieve better product control. Such advances are very valuable to us. We still need to use chemical analysis, but NIR is here to stay.” IMPORTANT TO TAKE A LEADING ROLE IN DEVELOPMENT Ms Dahl has nothing but praise for the Legasea members: “They show an exciting combination of high standards and openness to all kinds of solutions – including some from entirely different sectors. Eurofins originally developed NIR oil tests for analysing biodiesel. “We are now working together to find new analysis parameters, such as oxidation parameters, which will boost the products from the Legasea companies even further up the quality scale. We know that testing and documentation requirements can only become stricter, so why wait? We get a competitive advantage from presenting the solutions before the customer has formulated its requirements.”


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20,000 EMPLOYEES

39

COUNTRIES

“With fishmeal, it’s normally water content, protein content, fat and ash. With oil, we measure the contents of EPA, DHA, total Omega-3, glycerides, ethyl esters and antioxidants. This reflects the quality requirements demanded by the LEGASEA companies’ customers.”


MARINE INGREDIENTS ÅKP - LEGASEA 23

“MODERN FISHERIES ARE VERY MUCH A HIGH-SKILLS INDUSTRY” TORE ROALDSNES, CEO AT NORDIC WILDFISH AS, IS CONVINCED THAT NORWEGIAN TRAWLERS WILL ONCE AGAIN BE ALLOWED TO PRODUCE FILLETS ON BOARD, WHICH MEAN MORE OF HIGH QUALITY TRIMMINGS. IN THE MEANTIME HE IS REBUILDING THE FACTORY FACILITIES ON THE TRAWLER MOLNES, IN ORDER TO DEVELOP EXPERIENCE AND SKILLS IN HYDROLYSIS-BASED EXPLOITATION OF THIS VALUABLE RAW MATERIAL.


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“WHY SALMON FEED?” “Think of it as a result of cluster thinking. We need to develop experience and skills. The fish farming industry needs marine ingredients. Salmon feed must not be made of salmon, and fishmeal from herring and mackerel has become costly. In addition, Norwegian fish from the stocks we trawl is MSC-certified. That is a story which Norwegian fish farmers can tell their customers.”

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FT MOLNES AS A FLOATING LABORATORY While the new trawler is still at the planning stage, waiting for an amendment to the legislation, FT Molnes is being restructured at the Vard Søviknes shipyard. A new factory is being installed, including a hydrolysis unit for producing liquid protein concentrate - an ingredient for salmon feed made from trimmings from on-board H/G production. “Hydrolysis involves a very gentle treatment of the raw materials, partly because the method requires far lower temperatures. The heat for this is recycled from the engine, so it costs nothing and is emission-free.”

IN

In order to protect shore-based fish processing, Norwegian factory trawlers have only been permitted to produce headed and gutted (H/G) fish. Unfortunately, the shore industry has failed financially and H/G fish are being sent to China for filleting and further processing. Tore Roaldsnes is not alone in feeling that Norwegian quality fish and marine biomass products known as trimmings ought to be processed in Norway and sold as 100% Norwegian. “The plan is to build a whole new trawler,” Tore Roaldsnes says. “It will have an on-board factory for fillet production and further processing, fractioning of the trimmings into different categories, and hydrolysis-based production of high-quality fishmeal and oil for human consumption. Compared to H/G production, filleting gives more trimmings with more regular fish flesh. The time from catch to processing is also short, so the quality is first class. Currently, most on-board produced fishmeal goes to feed-production. Now we want to take it higher up the value pyramid.

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100% NORWEGIAN

“YOU MENTIONED A LABORATORY?” “As I see it, we are still at the early stages of exploiting marine biomass. So, in addition to being good at running this type of production unit, we need to work hard at finding out what else we can get out of it. Fish bones will be a separate project. We know that fish calcium is more easily absorbed than other calcium, and that osteoporosis is a problem for both individuals and for health budgets. So we have to find out how we can handle the resource of fish bones with a view to medical production. We must never stop looking for new opportunities.” TORE ROALDSNES EMPHASIZES THE IMPORTANCE OF TAKING AN ACTIVE PART IN CLUSTER COOPERATION: “There is always someone with knowledge to share and someone with a need to be met. That creates an incredible dynamic. And here I’m not just talking about the marine bio-industry cluster. I can assure you, the shipyard here has met some challenges of its own in installing the new production facilities on Molnes, which will prepare them for building the ships of the future. And that’s a skill we need.”


MARINE INGREDIENTS ÅKP - LEGASEA 25

HEALTH EFFECTS OF MARINE PROTEINS AND PEPTIDES MUST BE DOCUMENTED THERE ARE GOOD GROUNDS FOR CLAIMING THAT MARINE PROTEINS AND PEPTIDES HAVE A POSITIVE EFFECT ON HUMAN HEALTH AND QUALITY OF LIFE. LEGASEA IS NOW BUILDING UP AN INTERNATIONAL NETWORK OF EXPERTS ON PROTEINS IN ORDER TO DOCUMENT HEALTH CLAIMS AND HAVE THEM OFFICIALLY APPROVED IN THE SAME WAY AS FOR OMEGA-3. WHEN WE SUCCEED, IT WILL OPEN UP ENORMOUS OPPORTUNITIES IN PHARMACEUTICALS AND THE FOODSTUFF INDUSTRY.

Many studies have been carried out, and they point in the right direction. Fish proteins may be important in preventing lifestyle diseases such as obesity, high blood pressure and diabetes, commonly known as metabolic syndrome disorders. What’s more, the emerging scientific data collected from both animal and human studies show that fish protein hydrolysates may have significant biogenic effects affecting blood cholesterol, postprandial blood glucose, satiety, fat metabolism and deposition, inflammation, and muscle protein synthesis, even at very low dietary concentrations. Overall, fish protein hydrolysates and their health related functional qualities make them useful as nutritional tools for weight, blood glucose and blood pressure management as well as for stimulating protein synthesis in muscle tissue and improving digestive health. Studies also suggest that fish protein hydrolysates may be used as sports nutritional tools to improve performance as well as aid recovery following training and competition. Starting in 2017, we will also begin to look systematically at possible health effects from combinations of ingredients, known as cocktail effects. There are several studies which suggest that omega-3 and marine peptides could have positive effects in combination. HOW WE ARE BUILDING UP THE NETWORK We are setting up collaborations nationally and internationally, with universities, hospitals and others in the health and welfare services. In this way we gain access both to laboratory research and clinical research, which provides considerable breadth and strong progress. In April 2016 Legasea and Firmenich are organising a symposium, which will gather 80-100 of the world’s leading researchers. There is enormous interest in a theme like this, which can enhance quality of life and help to control growing health costs.

DID YOU KNOW? LOCAL COLLABORATION Linda K. Nygård at Molde University College is taking her doctorate for investigating whether marine peptides can delay natural sarcopenia (loss of muscle mass) in the elderly. A clinical study will be carried out, in which it is hoped that results will show a measurable reduction in fall injuries in patients taking these peptides.


26

MANAGEMENT AND FOCUS

ODD GJØRTZ

BJØRNAR KLEIVEN

TORE ROALDSNES

LEIF KJETIL GJENDEMSJØ

TORMOD THOMSEN

PER ERIK DALEN

ELISABETH MARÅK STØLE

MARIANNE SYNNES

MARIT AURSAND

ODDVAR SKARBØ

For all organisations it is vital to find the balance between long-term development and short term results. Legasea is built on the following principles: 1. The purpose of Legasea is to serve as a catalyst for market-driven commercial development. 2. We want a close-knit and homogenous organisation, where industry has a majority and management functions in all responsible bodies. To the greatest possible extent, the leaders of the Focus Groups will also be member of the Steering Committee/ Management Group. In this way, long-term aspects such as identity, attractiveness as a host, education and R&D will also be based on the needs of the commercial actors.


MARINE INGREDIENTS ÅKP - LEGASEA 27

WAY

MARINE LIPIDES

The perspective of Legasea’s mission is long-term industrial development. New value chains are to be established, and new technological solutions must be set up. It was expected that reaching target 1 would take 3–5 years. Through the efforts of innovative companies and good collaboration in the cluster, the first product in the new, entirely Norwegian value chain was already out in the market in 2015. This product was CodMarine™, distributed by Pharma Marine in the USA. The raw oil is extracted from trimmings on board F/T Havstrand. CodMarine™ has all the properties which Legasea is endeavouring to establish as standard: sustainability, Norwegian origin and full traceability, and a degree of freshness that can hardly be exceeded. The new value chain also enhances sustainability, creation of value and the reputation of the fishing fleet, since offcuts that previously were washed out to sea are now the raw material for products in nutrition and health products. It also helps to meet both national and global challenges. In principle, target 1 has been reached for lipids. Thus the objective is shifted towards increasing volumes, so that imported raw oil can be replaced by raw oil based on Norwegian biomass.

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DEVELOPE COMPLETE, COMPLEMENTARY AND MARKET DRIVEN VALUE CHAINS:

MA DE

FOCUS AREAS

MARINE PROTEINS AND PEPTIDES

With regard to the protein content of trimmings from the fishing fleet and other Norwegian sources, there are two particular challenges: 1. The market for marine proteins and peptides lacks approved health claims like those for omega-3. 2. The technology must be improved to achieve the highest quality, which is required for high value products used in human health and nutrition. The Steering Committee and the Focus Groups have initiated the following measures and projects in 2015: • PROMAC (Research Council of Norway/NFR project led by Møreforsking) with several focuses, one of which is drying technology. • Collaboration with Tafjord Kraftvarme is hoped for, as a new infrastructure arena. • A separate project has been carried out to define possible drying technologies. • Firmenich is investing tens of millions of Norwegian Kroner in a new production line. • Nordic Wildfish several hundred million Kroner in new technology to process trimmings on ships at sea. On 1 March 2016, F/T Molnes will become the world’s first white fish trawler with hydrolysis plant on board. • Legasea has set up a Network for Health Effects to channel (inter)national community activities to docu ment health effects of marine proteins and peptides. Publicly approved health claims are required if the market is to develop. Target 1 for marine proteins and peptides remains in force. Efforts are being intensified in 2016 to document health effects. Nordic Wildfish and Firmenich will see the effects of their investments in technology during 2016.


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SEE BACK PAGE

GENERAL MEETING

LEAGAL ENTITY

PROJECT MANAGER

STEERING COMMITTEE

Reporting

Strategic groups

MARKET

HOST ATTRACTIVENESS

INFRASTRUCTURE

Operational groups

REGULATORIES

2

R&D PROJECTS INSTITUTES

KNOWLEDGE

R&D PROJECTS BUSINESS

BYPRODUCTS

COLLABORATION WITH LEADING ACTORS IN THE MARKET

HEALTH EFFECTS

4

TO BECOME KNOWN AS A LEADING MARINE INGREDIENTS CLUSTER

It is an obvious precondition that developments in the cluster must be driven by the market. 2015 was a breakthrough year for the cluster from several angles. Firmenich (p. 16), assumed active leadership of developments in the market for marine proteins. The group has decided to invest globally and develop marine peptides for the health and nutrition sector. The headquarters for this are in Ålesund. Firmenich is core-listed with global actors, and in direct dialogue with them.

During 2015 Legasea has taken several small steps towards becoming an internationally recognised cluster, but it is a long route. Legasea was invited to Open Days in Brussels in 2014, and was subsequently one of two bio-economic clusters invited to “Growth in Blue Bio-Economy”, the Nordic Council of Ministers’ top-level conference in 2015. The August edition of Innovations of Food Technology introduced Legasea in a feature entitled “Unlocking the potential of marine ingredients”.

Legasea participated for the first time with its own stand at Vitafoods Europe 2015, the world’s leading trade fair in the field of “nutraceuticals”. Based on the experience gained, Legasea will participate with a national pavilion in 2016. Among members taking part, Orkla, the largest branded consumer goods conglomerate in the Nordic region will be represented by the Orkla Health division, Denomega.

Work on international profiling will be intensified in 2016, with special focus on: 1. The Legasea Signal conference in April, in collabo ration with Firmenich, where the aim is to gather the world’s leading researchers in the field of health effects of marine proteins and peptides. 2. A guided tour for the press, introducing international journalists to the region and the members of the cluster.

3

STRENGTHENING THE CLUSTER MECHANISMS

Several measures have been taken to strengthen the cluster mechanisms. The most important of these was to introduce professional networks as a new level in the organisation. Their purpose is to organise a tangible collaboration which will benefit the creation of value in the companies and/or their environmental audit. Three of these networks have been established: Duties/regulations, By-products and Health effects. Some 30 people from among the members are active in the professional networks. This element of the organisation will be further developed in 2016.


MARINE INGREDIENTS ÅKP - LEGASEA 29

CAMPUS ÅLESUND - A POWER CENTRE FOR BLUE OCEAN INDUSTRIES Campus Ålesund is a completely new way of thinking in education, research and business development. Here you will find Norway’s most fully integrated teaching and innovation arena. Nowhere else are theory and practice better combined. Nowhere else are business and the academic community more closely connected. This is how to turn knowledge about the seas into Norway’s future livelihood.

NTNU IN ÅLESUND The University College of Ålesund merged with the Norwegian University of Science and Technology (NTNU) on 1 January 2016, assuming the new name of NTNU in Ålesund. The university is a central player on the campus, and is experiencing a record demand for study places in marine and maritime subjects. There is vigorous growth in business-related research too. The prestigious Centre for Research-Based Innovation (SFI) was established at the university in 2014. SFI MOVE – Marine Operations has as its main goal the establishment of a world-leading research and innovation centre for demanding marine operations. CAMPUS ÅLESUND IS GROWING The Norwegian Maritime Competence Center (NMK) has been successful in both the maritime and the marine sectors in Sunnmøre District. The owners are now investing more than NOK 500 million in a 15,000 m2 expansion. NMK 2 will be ready for occupation in 2017. “Naturally, we can’t close our eyes to the current negative reports from the maritime and oil and gas industries. But we feel our perspective has to be higher and more far-

sighted. Marine activities in particular will see a brighter future,” says Board Chair of NMK, Leif Arne Langøy. COMBINING STUDY COURSES WITHIN MARITIME OPERATIONS NTNU in Ålesund has signed a tenancy agreement for the fourth floor of the new NMK2 building. The plan is to gather all nautical activities, with all the simulators and the Maritime Operations course centre, in one location. “The project will strengthen us as a leading national location for maritime education, research and training courses,” says Marianne Synnes, Vice-Rector of NTNU in Ålesund. SEVERAL NEW TENANTS Alongside NTNU in Ålesund, the local County Council will also be relocating its marine and maritime courses from Fagerlia Secondary School and Ålesund Technical School to the new premises. Other tenants will be the international group, Inmarsat Solutions, and Blue Ocean Innovation Arena AS.


30

BLUE OCEAN INNOVATION ARENA AS ÅKP and SIVA are forming a new joint stock company to take part in implementing the open innovation arena of the future at Campus Ålesund. Blue Ocean Innovation Arena is intended to be a shared innovation infrastructure for the whole area of sea-based industry. It will house the promising new technology areas of Virtual Prototyping, Big Data and 3D Cave. It will also offer a high-speed incubator for entrepreneurs and growth businesses. The dynamism of Campus Ålesund is attracting great national and international interest, and every year the campus receives a large number of visitors and delegations, wanting to know more about research, education and business activities in the marine and maritime clusters. Campus Ålesund has become a meeting place of choice for anyone with an interest in marine and maritime industries.

DID YOU KNOW? CAMPUS ÅLESUND

Campus Ålesund currently consists of the Norwegian University of Science and Technology (NTNU) in Ålesund, the Norwegian Maritime Competence Center (NMK), Ålesund Technical School, Fagerlia Secondary School and Sunnmøre District Museum. Companies located on the Campus include: Rolls-Royce Marine, Aker Solutions, Offshore Simulator Centre, Møreforsking, Sintef, ÅKP, Patogen, Zacco and about 20 more large and small businesses. In total, there are about 3000 students and 1500 employees on the Campus.


MARINE INGREDIENTS ÅKP - LEGASEA 31

ÅKP INNOVATIVE INTERPLAY IN PRACTICE

Occupying a central position on Campus Ålesund is the innovation company ÅKP. The company’s core business is helping to create the workplaces of the future and an attractive region for living and working. ÅKP is currently a regional magnet for innovation and business development, operating one of Norway’s most complete incubator systems, the Blue Maritime Cluster. (Global Centre of Expertise) Legasea, Norwegian Rooms and several other national and international projects. The County of Møre og Romsdal is currently the home of worldclass sea-based business clusters. Many of ÅKP’s activities are linked to these important industries, but at the same time, the company is actively endeavouring to transfer knowledge and experience of innovation processes, organisation and culture to other industrial settings and public sector activities. – According to ÅKP CEO Per Erik Dalen, the company strives to be a driving force for innovative thinking, actively connecting business, the academic community and the public sector in processes which will create sustainable values. “ÅKP’s fully integrated and synchronised innovation system will help to create new growth businesses and develop existing businesses. In close cooperation with business, research and development and policy implementation systems, ÅKP has established a model which will give rise to mutual benefits between innovative businesses and cluster programmes. Start-up businesses need the support

of networks, financial muscle, strong innovation environments and cluster programmes if they are to succeed. On their part, business clusters need new ideas, innovation and businesses in order to grow and strengthen their competitiveness in the global market. This is a dynamic which ÅKP is there to amplify. – “We feel that our model ensures a robust and future-oriented innovation system. All our activities are interconnected and reinforce each other, while employees make contributions to all projects across professional boundaries and departments. We call this: ‘one idea, many heads’. In this way our customers have access to the full expertise and network within our organisation,” says Mr Dalen. This network thinking and seamless innovation model is unique in Norway. The aim is to stimulate and develop a basis for future value creation in the region.

DID YOU KNOW? ÅKP ÅKP was founded in 1999 and is owned by local authorities and businesses in the region, by Møre og Romsdal County and by SIVA. The company has nine permanent employees and six project appointments. ÅKP has three strategic focus areas: ÅKP Nyskaping (Innovation), ÅKP Regional Utvikling (Regional Development) and ÅKP Havrom (Blue Ocean). ÅKP NYSKAPING/INNOVATION: • First-line service for start-up companies • Incubator • Early capital and business fund

ÅKP REGIONAL UTVIKLING/REGIONAL DEVELOPMENT: • Campus Ålesund • MIT Reap • Byregion Ålesund • Norwegian Rooms ÅKP HAVROM/BLUE OCEAN: • Blue Maritime Cluster – Global Centre of Expertise • Legasea – Norwegian Biomarine Resources • Ecowinds • Ronomar 2


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100%

Utilization - high value products

INSPIRE YOUNG TALENTS! INSPIRE COMPANIES! INSPIRE INVESTORS!

MA DE IN

• SUSTAINABLE PRODUCTION OF NORWEGIAN MARINE INGREDIENTS • 100 % UTIALIZATION – HIGH VALUE PRODUCTS • KNOWLEDGE BASED INDUSTRY • BASIC NEEDS GLOBALLY: NUTRITION & HEALTH

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• FROM OIL ECONOMY TO BIO ECONOMY

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SUMMARY


Members of Legasea 2015: (In addition to the industry members shown on page 3): Suppliers: Eurofins and Innolipid. R&D: Møreforsking and Sintef fishery and aquaculture. University: NTNU Ålesund. Legasea is a complete business cluster project within marine ingredients. Legasea started out with 23 members in 2013, to sort out the strategic important elements to establish new value chains. The cluster has now reached a point where it is natural to move to the next level. In Møre there are around 500 companies associated with marine biomass, representing a turnover of some 38 billion NOK.

Legasea is part of the governmental program «Norwegian Innovation Clusters», financed by Innovasion Norway, The Reasearch Council of Norway and SIVA. The project is facilitated by ÅKP (AAKP). Møre & Romsdal County is another important partner, including partial financing.

siva

for nyskaping og vekstkraft

ÅLESUND KUNNSKAPSPARK

E LL E m E LLE Photo: Kristin Støylen, Text: kundetxt.no, Print: www.hatlehols.no 160032-01

LEGASEA C/O ÅKP, Borgundvegen 340 6009 Ålesund, Norway T: +47 70 32 92 00 legasea@aakp.no www.legasea.no


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