Proof of Concept of a Scalable Hatchery System Using Modular Principles to Increase Production and Survival for Commercially Important Mytilus Species

Final Report

Island Sea Farms Inc

AIMAP 2011-P02

Executive Summary

Mussels are one of the fastest growing aquaculture products and the market demand far exceeds the current supply. In BC, mussels are a good candidate for aquaculture and can be harvested in 18-24 months. However, the lack of appropriate mussel seed has hindered industry development. Island Sea Farms, a BC mussel production company has designed an innovative hatchery for mussels that will increase the production of seed by 50%. The reliable supply of additional seed will be used to stabilize and expand the BC industry through joint venture and other collaborative culture arrangements with current shellfish growers and First Nations. The innovative hatchery design uses green technologies that reduces energy requirements and improves environmental performance. Meeting environmental standards provides access to specialized markets that provide a premium price for shellfish. The increasing demand for mussels and the relatively high value of the quality controlled Island Sea Farms product presents an opportunity to market the new technology to interested growers in the BC shellfish industry as well as to mussel producers around the world.

This project was an aquaculture industry-driven early commercialization of an innovative technology that proved, through implementation and optimization, that an innovative hatchery design scaled to production levels and modular in design is the key to accelerated hatchery production. The modular hatchery has allowed Island Sea Farms to expand mussel production, improve environmental performance, and have a proven technology to market locally, nationally and internationally.

The total project budget was $608,010. Fisheries and Oceans Canada, Aquaculture Innovation and Market Access Program provided $205,000 towards these costs and Island Sea Farms' contribution was $403,011.

Introduction

Island Sea Farms is a BC company that grows mussels in a land based hatchery on Salt Spring Island and on deepwater sites near Cortes Island. The company has been culturing mussels for over 12 years and is the only BC company to farm mussels as a full time business. They also have the only dedicated commercial mussel hatchery in the world and have twice received the award for Technology Innovation for Aquaculture (2006, 2010) from the Mid Island Science and Technology Innovation Council for development of innovative techniques and processes to enhance the culture of mussels.

Methods/Solutions

In order to expand the business and the BC industry, the company has designed an innovative commercial scale modular mussel hatchery which will support the following outcomes:

• Prove the innovative hatchery design meets all production targets and functional requirements
• Expand industry production through development of collaborative business arrangement or joint ventures
• Reduce environmental impact by installing energy saving equipment
• Develop a business strategy to market the scalable modular hatchery locally to promote shellfish aquaculture species diversification
• Communicate the project information to the public

The innovative technology consists of three modules that can be constructed separately and scaled to production requirements allowing for incremental increase as required or over time.
Module 1 - Algal culture and feeding system
Module 2 - Brood stock conditioning and spawning and larval culture
Module 3 - Larval setting and juvenile nursery culture

Results

Island Sea Farms has calculated the innovative modular hatchery will increase the production of mussel seed by 50%. The three modules (algal production, larval production, and nursery culture) have been constructed, integrated and optimized to create greater efficiencies and enhance output. Each module was designed to be constructed separately and scaled to production requirements allowing for incremental increase as required or over time. As such this project has met or exceeded all objectives.

Production Results

The new hatchery was complete in the fall of 2011. In March 2012 (mid-point of spawning) production of algae, larvae and juveniles each exceeded expectations with a 43%, 58%, 38% increase respectively. Production of seed increased 52% at the density previously determined optimal for grow-out. 

Operating Costs

The addition of an innovative greenhouse, a component of the algal module, has created a superior environment and increased algal production at relatively the same cost of fuel. The insulating of the juvenile raceways in the nursery system contributed to a decrease in fuel costs for heating this system. Also insulating the nursery tanks has reduced heat loss and kept the temperature from fluctuating which has increased production by reducing larval mortality through metamorphosis and setting.

Integration of Modules

The individual modular hatchery systems are functioning as well as or better than expected. The new algal system produces cultures with greatly increased density resulting in an excess of algal food produced. This in turn has supported more competent larvae produced than expected. As a result the previous production bottleneck of algal and larval production has been eliminated. The additional algal food is provided to the broodstock, enhancing the condition of animals at spawning.

Industry Sustainability
This project contributed to the sustainability of the BC and Canadian industry by 1) improving access to cultured mussel seed, 2) increasing industry production, 3) developing green hatchery technologies and 4) developing a scalable modular hatchery for sale nationally and internationally.

Project Activities by Phase

Phase 1 – Implementation of a scalable modular hatchery through upgrade of existing hatchery and new construction

• Activity completed on schedule and with only a slight increase in budget during Modular 3 construction. No changes were made to the work plan.

Phase 2 – Technology evaluation and optimization

• Hatchery production evaluation complete
• Evaluation of technology function complete
• Optimization of operating procedures for hatchery technology is complete
• Seed produced in hatchery has been out planted to growout site and evaluation of growth and survival will be completed at harvest in 2013

Phase 3 – Development of Marketing Strategy, Communications Plan and Final Report

• International marketing strategy was drafted in 2011 and has been revised to reflect direct interaction with shellfish growers in Asia, presentation at Aquaculture Canada 2012 and initiation of the official marketing activities once the hatchery yield has been determined. This is expected in 2013 as the first hatchery production lines are harvested. This will be crucial information for those interested in purchasing the modular hatchery.
• Communications Plan is complete.
• Final Report is complete

Deliverables

Financial

The total project budget was $608,010. Island Sea Farms' contribution was $403,011 and the 2011 AIMAP contribution was $205,000. 

The AIMAP funding was used for specific hatchery equipment which has been purchased and is installed in the new hatchery.

Future Activities

The evaluation of the cost of seed produced in January 2012 will be completed December 2012. Also in December 2012 the system yield per line will be estimated with full evaluation at harvest (2013).

The integration of the modular systems is complete and the hatchery is an efficient machine providing double the output of the previous years with the same footprint and similar heating costs. However further efficiencies will continue to be sought through the development of standard operating procedures and refinements in processes and techniques.

Development of Klahoose First Nation farm site was delayed due to not receiving the aquaculture license and the seed was temporarily put on another farm site while awaiting the license. The license has now been received and the site development will commence in March 2012. Island Sea Farms expects to contribute a further $30,000 to the site equipment and construction which is not included in the report eligible expenses. Once the new farm is completed, the seed will be moved to this site. The Klahoose First Nation remains committed to development of the lease and is pleased with the seed produced in the new modular hatchery.

Conclusion

This project was successfully completed on time and within budget and all deliverables met. With the assistance of DFO AIMAP support, full commercialization of an innovative technology was achieved in less than one year. It is expected that the modular hatchery design will provide the basis of future expansion and increased hatchery production. The modular hatchery design has also reduced energy costs per seed produced and generated international interest.