'Namgis Land-Based Atlantic Salmon Recirculating Aquaculture System Pilot Project

Final Report

K'udas Limited Partnership

AIMAP 2011-P09

Executive Summary

The ‘Namgis Land-Based Atlantic Salmon Recirculating Aquaculture System Pilot Project is a commercial pilot facility which will demonstrate the technological and commercial viability of producing Atlantic salmon for table-food in a land-based closed containment recirculating aquaculture system. The goal is to show that land-based, closed containment recirculating aquaculture systems are a competitive alternative to open net-pen fish farming. This Project will provide a mechanism for the salmon farming industry to expand and provide ongoing benefit to the province of BC while eliminating the harmful environmental impacts of the current open net-pens. 

Project preplanning and system design was initiated in 2010 with Phase 1 commencing in 2011. Key activities for Phase 1 were finalizing the design of the Recirculating Aquaculture System (RAS), procuring specific technologies essential to the facility and initiating site development. Activities for Phases 2-3 include completion of the site and construction and commissioning of the facility. Phase 4 includes fish production to harvest and evaluation of the economic feasibility. 

Phase 1 was completed on schedule, Phases 2-3 are in process with construction of facility to be completed on schedule in September 2012. Phase 4 will initiate with Atlantic salmon being introduced into the system in October 2012 (This deadline was later extended to March, 2013).

AIMAP funding has enabled the Project to move from the concept stage to facility construction, turning current knowledge and developed technologies into a production system that will prove the viability of on-land recirculating salmon aquaculture.

Introduction

The production of salmon for the table market in land-based RAS facilities has been attempted many times in previous years in various countries using various technologies. In most cases these operations were only economically viable at small production levels destined for niche markets. The markets were often direct to plate, with food production considered a secondary revenue source to other primary business activities such as production of eggs or smolts.

With improvements in RAS technologies and knowledge, increasing consumer and major buyer demand for more environmentally sustainable seafood, and increased costs associated with open net-pen technology in areas such as environmental compliance, feed, and losses due to escapes and disease, the potential for economic viability of land-based salmon farming has improved.

Three reports have assessed the technical and economic viability of RAS technology - Dept Fisheries and Oceans Canada, 2010; Wright and Arianpoo, 2010; and Ecotrust Canada, 2009. The results of these theoretical studies varied widely in their projections of economic viability. This uncertainty represents a roadblock to potential investment in this industry. Therefore a need exists for a pilot commercial facility that addresses these uncertainties in order to catalyze investment into the development of this new approach to salmon aquaculture.

Through this project, the ‘Namgis First Nation is taking the lead to show Atlantic salmon can be farmed in a more sustainable way than traditional open net-pen salmon farming. For the ‘Namgis, the project has the dual benefit of protecting wild stocks and taking advantage of growing global demand for aquaculture.

The Project has the following objectives:

• To confirm the biological, technical and economic viability of raising salmon to market size in a land-based recirculating aquaculture system
• To validate the operating costs and production parameters for the design of a commercial-sized facility, including
  • Confirming the growth efficiency of Atlantic salmon reared in this kind of a system;
  • Testing the overall operating efficacy of the RAS system;
  • Testing the market premiums obtainable for "environmentally friendly" salmon;
  • Testing the fish flesh quality improvements and related market premiums that can be obtained by relaxed harvesting techniques;
  • Assessing the actual environmental impacts; and
  • Confirming the key economic factors needed to determine the potential for commercial scale facilities including: optimum design and operating parameters, opportunities for capital and operating costs reduction, and derivation of scalability factors.

An operational objective and a condition of 'Namgis participation is that the project be capable of being operated in a manner that will result in a net operating profit to the 'Namgis People.

Methods/Solutions

The use of land-based RAS technology for the production of “market sized” salmon is a relatively new approach to salmon production. The Project has introduced some refinements that set it apart from other RAS operations such as:

• Brackish water rearing of Atlantic salmon (low fungal risk, potentially optimal growth, less costly than production in full seawater systems);

• Facility designed as a “commercial module”, incorporating elements of a much larger facility such as “large” (500 m3) tanks to enable testing of “commercial scale assumptions” such as large tank management; and
• Employment of very conservative rearing and water quality parameters to provide opportunity for maximum fish performance.

Facility Development and Design

Location: The facility is being constructed on the ‘Namgis Cheslakees reserve lands next to the Nimpkish River, near Port McNeill, B.C. This location offers the advantages of abundant high quality groundwater with moderate salinity. The site is level, serviced by three-phase power, close to support resources in Port McNeill, has room for expansion, is next to the Island Highway, is close to several fish processing plants, and had low development costs.

Facility Design (general): Design is flexible enough to allow for differential fish growth or interruptions in markets and still enable fish to be reared in an “optimal environment”. Independent temperature control of two separate production lines and appropriate grading practice maximizes the opportunity to be a consistent, year round supplier of product. Use of lower densities, larger tanks, less fish handling and more conservative water quality parameters maximizes the opportunity for fish performance (growth and Feed Conversion Ration).

The building footprint and layout accommodates specific biofilter options and retains reasonable working room and allows for some alteration of equipment and/or configuration. A separate starve, off flavour purge and pre-harvest tank is in place to allow for pre-harvest depuration. Depuration allows for elimination of any “off flavour” that may result from bio-filtration processes.

A separate quarantine facility with an independent water supply system was developed to reduce the potential for the introduction of pathogens to the rest of the facility from new smolt introductions.

Facility Design (RAS system):Biological filtration (conversion of ammonia to nitrate) utilizes proven equipment that offers the lowest net energy impact. Gas exchange functions utilize standard technologies but choice and integration with biofilters focus on energy conservation.

The design represents an appropriate commercial module that can be incorporated as a stand-alone unit in a much larger facility. The facility provides a realistic pilot trial of a commercial scale facility (e.g. large tank management, labour costs, fish performance potential, temperature control, energy costs, etc.)

Operations

Production:The facility will be provisioned with smolts up to three times per year with the sustained production rate of 315 tonnes/annum of 5.5 kg Atlantic salmon. First harvest is scheduled for September 2013.

Flexibility: The design offers sufficient flexibility to allow for differential fish growth or interruptions in markets, while still enabling fish to be reared in an optimal environment. Temperature control and efficient grading maximizes the opportunity to be a consistent supplier.

Fish Performance:Use of optimal densities, larger tanks, less fish handling and more conservative water quality parameters will maximize fish performance (growth and Feed Conversion Ration). The use of moderate (7 ppt) salinity will minimize fish energy costs and provide the potential for maximum feed conversion efficiency.

Marketing

Land-based salmon production offers the opportunity for greater control of the production of fish and harvest processes. This control has the potential to significantly increase product value and provide premium pricing through consistent product size, volume and quality.

Project Schedule and Activities

Phase 1 (AIMAP Funded): Procurement of Specific Technology and Onsite Preparation (July 2011 – March 2012)

• Specific pieces of technology essential to the RAS were procured through the RFP process
• Technology including drum filter and oxygen generator purchased with AIMAP funds
• Delivered a final report that provides a status update on the longer term project

Phase 2: Detailed Engineering/Procurement/Construction (September 2011-March 2012)

• Awarded the detailed engineering, procurement, and construction contracts
• Ordered and purchased the necessary materials and equipment
• Finalised the detailed engineering design
• Prepared the site and started building the facility
• Initiated staff hiring and training

Phase 3: Commissioning and Training (July -September 2012)

• Successful recruitment of an Operations Manager for the facility, and development of a commissioning team that included the facility and aquasystems engineers, the construction contractor, the aquaculture support consultant, and the Operations Manager
• Complete the facility and ready it for start-up, with systems to be functioning reliably and well trained staff in place

Phase 4: Operations (September 2012-September 2013)

The final phase of the Project is the operations phase which involves rearing the first crop of fish to market size and selling them. This phase includes analysis, reporting, and presentation of production and financial outcomes. 

Phase 1 Results

The design and engineering of the RAS was completed in December 2011 except for the heating system which was fully designed in March 2012. A system to evaluate suppliers and materials was developed in June 2011 and has been used to select major contractors and specific technologies. Site development started in December 2011 and as of the end of March 2012 construction of the main facility has begun.

Future Activities and Status Update on the Project

Phase 2: Detailed Engineering/Procurement/Construction (September 2011-March 2012) not funded by AIMAP

• Detailed engineering, procurement, and construction contracts have been awarded for the following
  • PRAqua General Agreement for RAS design and development has been completed, as well as specific contracts for equipment manufacture
  • Derk Enterprises has been contracted for site development and facility construction
  • Ordered and purchased the necessary materials and equipment
  • RAS equipment design has been finalized and specifications completed
  • The process of procurement was initiated in January 2012 and is expected to complete in September 2012
  • Class A costs (quotes) have been received and purchase arrangements have been made for the main building, large pipes, fibreglass fittings, office and accommodations, and specific RAS and non RAS equipment
• Finalised the detailed engineering design
  • RAS engineered design is complete
  • Heating System engineered design and costing will be complete May 1st
• Prepared the site and started building the facility
  • Site development commenced December 2011. To date the site has been cleared, felled trees removed, excavation for the facility and the infiltration basin completed, project signage erected, and plumbing installation has commenced.
  • Independent Environmental Monitor has been engaged by the Pacific Salmon Foundation and is on site regularly to monitor all site activities
• Initiated staff hiring and training
  • Operations Manager, Cathal Dinneen, has been hired and working since May 2, 2012
  • Supported by Tides Canada, an RAS technician, Phil Backover, has been seconded from The Freshwater Institute, West Virginia until December 2012
  • Development of a RAS Technician training program for the ‘Namgis First Nation has been initiated in conjunction with North Island College

Phase 3: Commissioning and Training (July –September 2012) not funded by AIMAP

• Successful recruitment of an Operations Manager for the facility and development of a commissioning team that includes facility and aquasystems engineers, construction contractor, aquaculture support consultant, and Operations Manager
  • See staff hiring and training above
• Complete the facility and ready it for start-up, with systems to be functioning reliably and well trained staff in place
  • Facility is on schedule to complete construction and commissioning September 2012

Phase 4: Operations (September 2012-September 2013) not funded by AIMAP

• The first cohort of Atlantic salmon will be introduced to the facility October 2012 with an expected harvest in September 2013
• Extensive collecting of data, analyses, reporting, and presentation of production and outcomes is included in this phase through detailed Performance Metrics that include evaluation of production, productivity, environmental impacts, financial considerations, social impacts etc. and are available as of July 1, 2012 at http://tidescanada.org/
• Assessment of the environmental footprint, benchmarking for future operational and energy efficiencies, identifying opportunities for design and operating parameter enhancements for subsequent facilities, and establishing and assessing the market response to a new salmon aquaculture product will also be completed

Conclusion

Phase 1 (AIMAP funded) activities including the design of a RAS facility, procurement of specific components, and initiation of site development have been completed. These activities were a key first step in the process of constructing the facility, producing Atlantic salmon and achieving the Project objective of addressing some of the major challenges restricting the economic and growth potential of Canada's existing salmon aquaculture industry by confirming that recirculating aquaculture systems are economically viable and enabling the industry to expand to land-based operations.

The information from this Project will provide the salmon aquaculture industry with a significant advantage in assessing the viability and economic potential of RAS technology by removing key uncertainties. Existing RAS operators will also benefit with respect to potential improvement to their operations resulting from the trial and detailed analysis of an alternative rearing program to their own.