Development- Offshore FlorAbama Marine Sea Development- Offshore FlorAbama Marine Sea Farming Farming

in thein the Gulf of MexicoGulf of Mexico

FOR IMMEDIATE RELEASEMonday, February 13, 2006

U.S. SECRETARY OF COMMERCE GUTIERREZ STATEMENTON THE NATIONAL OFFSHORE AQUACULTURE ACT

“I am convinced that the United States must explore the potential ofoffshore aquaculture to help meet the growing demand for seafood inthis country and to create jobs and economic opportunity for coastalcommunities. To support that, we are making the National Offshore

Aquaculture Act of 2005 a priority for this department and this

country. We need to create this opportunity now.”

NOAA 10 YEAR AQUACULTURE PLAN - 2007 & GOM Seafarming Regulations - 2013

“Create five new onshore hatcheries and 20 new farms in the EEZ with a combined annual production of 10,000 to 15,000 MT.”

Not Why ButWhen ?

Project StrategyProject Strategy

• ““Feed the WorldFeed the World” environmentally ” environmentally sustainablesustainable and and transferabletransferable technology technology

• Lowering pressure on marine fish stocks Lowering pressure on marine fish stocks and restocking the GOM with fingerlingsand restocking the GOM with fingerlings

• Economic growth and 1000’s of new jobsEconomic growth and 1000’s of new jobs

• Healthy, low cost, high protein food Healthy, low cost, high protein food production from sea farming, not trawling!production from sea farming, not trawling!

History of Project DevelopmentHistory of Project Development• Patented SeaTrek Ocean faming & SeaStar oyster system- 1994/95Patented SeaTrek Ocean faming & SeaStar oyster system- 1994/95

• Recd 1Recd 1st st USA offshore sea farming permits in 1994 from USACOE USA offshore sea farming permits in 1994 from USACOE Section 10 and EPA - NPDES for FlorAlabama site.Section 10 and EPA - NPDES for FlorAlabama site.

• Recd latest USA offshore sea farming permits in 2013=27.5 acresRecd latest USA offshore sea farming permits in 2013=27.5 acres• From USACOE Section 10 and EPA- NPES for FlorAbama site.From USACOE Section 10 and EPA- NPES for FlorAbama site.

• 2013-NOAA approval of GO Mexico offshore seafarming regulations2013-NOAA approval of GO Mexico offshore seafarming regulations

• 2014-Waiting on approval of Pensacola hatchery for fingerlings 2014-Waiting on approval of Pensacola hatchery for fingerlings

• Upon Pensacola hatchery approval/construction, will begin building Upon Pensacola hatchery approval/construction, will begin building first sea cage systems in FlorAlabama Gulf site- Fy2015/16first sea cage systems in FlorAlabama Gulf site- Fy2015/16

Hatchery for fish, molluscs & shrimp

Shrimp Earth Ponds (Cadiz, Spain)

Intensive Turbot Production: Galicia

Fish farming in Europe developing several new projects and species.

1985–1990 Tinamenor, Spain Hatchery1985–1990 Tinamenor, Spain HatcheryTurbot & Shrimp ProductionTurbot & Shrimp Production

Sea Bream & Sea Bass Production in Spain

• Offshore fish farm design and management in Spain

• Coorporacion Interalimentaria CIMPOR

• Marine Farms, AS

• The interest for offshore fish farms in Spain increased due to the success of early sea farming $$$ investments.

•

•Spain - new fish farms at beginning of new industry

Spains success in sea farming w/new Spains success in sea farming w/new fish farms & a new industryfish farms & a new industry

1999-2004 - TIMAR Group (FERD AS, Norway)

Timar planned to create a large new branch for its holding company, Ferd AS on fish farms in the Mediterranean area and in other countries like Cuba. Objective = create new sites for hatcheries, nursery, production, packing and distribution in order to develop integrated fish farms.

•Site selections

•Mooring plans

•Building and installing cages

•Improving cage management

•Teaching husbandry

•Technical auditing

•Quality control

•Enviro Monitoring

International Project ConsultingInternational Project Consulting

2014-Worldwide decline in wild finfish populations

Worldwide increase in demand for finfish protein Worldwide increase in demand for finfish protein

1960 1970 1980 1990

0

500

1000

1500

2000

Gadidae

Scorpaenidae

Rajidae

Pleuronectidae

Anarhichadidae

45 Year Community Changes on Southern Grand BanksB

iom

ass

(100

0’s

of m

etric

ton

s)

1950 10% of 195010% of 1950

CodScorpionfishSkateFlounderWolffish

World Consumption of World Consumption of Meat ProteinMeat Protein

Fisheries Product Supply by RegionFisheries Product Supply by RegionA

8

20 19

2624

9

20042004

Contribution of Aquaculture to Contribution of Aquaculture to Total World Fisheries Landings 1970-2004Total World Fisheries Landings 1970-2004

1 of 3 Fish from Aquaculture

Total aquaculture production in 2004 was 47.8 mmt or 33.8% of total world fisheries landings of 141.6 mmt (FAO, 2006)

2004

93.8 mmt

47.8 mmt

Total Global Finfish Landings Through CaptureTotal Global Finfish Landings Through CaptureFisheries and Aquaculture 1970-2004Fisheries and Aquaculture 1970-2004

A. Tacon 2002

1 of 60 Fish from Aquaculture

Total farmed marine finfish in 2004 was 1.4 mmt & valued at US$4.9 billion; farmed marine finfish represented 1.7% of total landed marine fish, 85.8 mmt.

85.8 mmt

1.4 mmt

Total World Aquaculture Production by Region in 2004Total World Aquaculture Production by Region in 2004

1.3% North America 1.8% North America

Latin America 2.26% by weight 7.47 % by value

North America 1.27% by weight 1.86% by value

Africa 1.02% by weight 1.55% by value

Europe 3.96% by weight 8.63% by value

47.8 mmt US$ 63.4 billion

Asia 91.5% Asia 80.5%

• $1.5 Billion Annual Gross Income from collapsed fishery- 1985$1.5 Billion Annual Gross Income from collapsed fishery- 1985

• Largest producers of marine fish fry in the World, >300 M-2005Largest producers of marine fish fry in the World, >300 M-2005

• Vertically integrated controlling production of seed, cage farm Vertically integrated controlling production of seed, cage farm production, processing and distributionproduction, processing and distribution

• Limited to a finite number of production sites most less than 5 Limited to a finite number of production sites most less than 5 acres in total sea faming area.acres in total sea faming area.

• Diversifying species cultured because of over-productionDiversifying species cultured because of over-production

• Actively partnering with companies in many other countries Actively partnering with companies in many other countries world-wide including potential in the USA in GOMworld-wide including potential in the USA in GOM

Mediterranean ModelMediterranean Model

0

100

200

300

400

500

600

700

800

900

1000

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004Year

Gro

ss R

even

ue (

Mill

ions

of

US$

)

0

50,000

100,000

150,000

200,000

Fis

h m

t

Fish (mt) Gross revenue ($M)

Growth of Mediterranean Offshore Fish Farming 1986-2005

0

100

200

300

400

500

600

700

800

900

1000

2008 2010 2012 2014 1994 1996 1998 2000 2002 2004Year

Gro

ss R

even

ue (

Mill

ions

of

US$

)

0

50,000

100,000

150,000

200,000

Fis

h m

t

Med (mt) Biomarine (mt) Med ($M) Biomarine ($M)

Projected Growth of One GOM Site Compared with the Mediterranean History

7 Year Business Plan

12 Year Projection

27.5 acres 27.5 acres FL/AL siteFL/AL site

Gulf of Mexico Candidate SpeciesGulf of Mexico Candidate Species

GrouperRed Snapper

King Mackerel

Gulf of MexicoGulf of MexicoCandidate SpeciesCandidate Species

Greater AmberjackGreater AmberjackRedfishRedfish

Red SnapperRed Snapper

Red PorgyRed Porgy

Red FishRed Fish

CobiaCobia

Estimated Growth Rates of Gulf of Mexico Species at 20-25o C

0.1

1.0

10.0

100.0

1,000.0

10,000.0

0 1 2 3 4 5 6 7 8 9 10 11 12

Months

Wei

ght

(Pou

nd

s) CobiaAmberjackRed FishFlounderRed PorgyRed SnapperSalmon

22 lbs in 12 months6 lbs in 12 months

12-1612-16ooCC

0.5 lbs in 0.5 lbs in 12 months12 months

2.2 lb

0.22 lb

22.0 lb

0.0002 lb

0.002 lb

0.02 lb