Virtual view of the Blue Endeavour concept's pilot farm and pen design with examples of some of the new technologies that will be part of it.
Image: ScaleAQ.
"It's clear that open ocean aquaculture is going to be key for the industry's growth." The statement was made by New Zealand's Minister for Oceans and Fisheries, Shane Jones, after announcing that the Coalition Government is going to back offshore aquaculture as a way to guarantee the future of salmon farming in the country.
"We expect this investment to boost exports and produce more higher paying jobs in our regions," added Todd McClay, New Zealand's Minister for Agriculture, Trade and Investment, who accompanied Jones at the announcement.
Both ministers thus confirmed New Zealand Government's support for salmon farming, a sector that is estimated to generate an additional NZD 500 million (EUR 266.12 million / USD 282.43 million) in salmon exports by 2035.
As stated by Minister for Agriculture, and Trade and Investment, the Coalition Government will co-invest NZD 11.72 million (EUR 6.23 million / USD 6.62 million) over five years from the Sustainable Food and Fibre Futures (SFF Futures) fund as part of an NZD 29.3 million (EUR 15.59 million / USD 16.55 million) program, led by New Zealand King Salmon (NZKS), "to increase production and drive up exports," Minister McClay said.
Titled 'Future Farming: A Blueprint to Accelerate Salmon Farming in Aotearoa', across its five-year duration, the program will pilot the technologies that will provide the 'blueprint' for substantive and sustainable salmon farming growth in New Zealand, especially within new open ocean environments.
"The joint project will look at ways to expand salmon farming around New Zealand including in deep water while continuing to meet environmental obligations," Todd McClay continued. "The 'Future Salmon Farming Programme' will prove the viability of open ocean farming for the King Salmon species to make New Zealand a leading global supplier for this high value product," he continued.
"It will also drive innovation, allowing fish farmers to maximise productivity and profitability and get a better return for their product," Minister McClay concluded.
Notably, this will be one of the largest value investments made by SFF Futures since the fund's inception in 2018.
Commenting on the Government funding partnership, New Zealand King Salmon explained that the 'Future Farming' program encompasses three critical workstreams:
Blue Endeavour Pilot, in relation to open ocean aquaculture.
Recirculating Aquaculture Systems (RAS) Pilot, in relation to freshwater hatchery technologies.
Novel Breeding Strategies, to improve fish resilience and breeding accuracy.
According to NZKS, the successful implementation of these technologies on a pilot but commercially relevant scale will serve to demonstrate their utility for the New Zealand salmon aquaculture sector and contribute to the Government's plans to strategically boost this industry and increase the value of exports.
The King salmon producer said the program will also provide business confidence for other companies to adopt similar technologies and unlock significant growth while ensuring the long-term viability of the industry in the face of the challenges exacerbated by climate change.
"Having the world's first King salmon open ocean aquaculture site at Blue Endeavour is a big responsibility – while we are confident it will be successful, there will be some significant lessons learned along the way," said NZKS CEO, Carl Carrington. "This funding partnership will enable us to share these learnings and build industry and investor confidence."
Blue Endeavour will be New Zealand's first offshore fish farm. It will also be the world's first farm of its kind for the valuable King salmon species (Chinook), a niche salmon breed that has put New Zealand on the world map as a premium export product and is also appreciated by local consumers.
Representing less than 1% of global salmon production, King salmon sells at a significantly higher price than Atlantic salmon, which is the predominant species globally. New Zealand King Salmon said it is currently unable to meet international demand, especially for its premium 'Ōra King' product, which enjoys great popularity in the United States.
"With the NZ salmon sector poised to grow, the learnings from Blue Endeavour, and the associated technologies, should accelerate the pace of development of the sector and support this NZ Inc level blue economy opportunity," Carl Carrington explained.
"While this is a significant partnership for our company, we also realise that to achieve our aspirations, we must prioritise collaboration – with industry, government, iwi, suppliers, customers, communities and beyond. The rewards for New Zealand of getting this right are significant," NZKS CEO added.
New Zealand King Salmon offshore farm will be located 7 km off Cape Lambert outside the Marlborough Sounds. It will comprise two blocks of ten circular pens each, and the total farm will be less than 12 surface hectares in size. When fully operational, Blue Endeavour will have the capacity to produce ~10,000 metric tonnes of King salmon.
After a six-year wait, the Blue Endeavour offshore farm project got approval from the Marlborough District Council in November 2022 but, after gaining it, New Zealand King Salmon had to seek mediation after the decision was appealed by the McGuinness Institute think tank, as well as the New Zealand Department of Conservation, which, at the time, was proposing several conditions for approval.
Now, as mentioned, the project will be backed by the government through the Sustainable Food and Fibre Futures fund. Administered by the Ministry for Primary Industries, this is a government-industry initiative that invests in significant programs of research and innovation to boost the economic growth and sustainability of New Zealand's primary and food sectors.
As New Zealand's Oceans and Fisheries Minister, Shane Jones, noted, this investment backing offshore aquaculture is another example of the Coalition Government's commitment to growing the aquaculture industry and supporting innovation in the sector, "to the benefit of all New Zealanders."
"We have a strong track record of supporting New Zealand aquaculture, including investing in projects to boost mussel spat availability, extending the resource consents for marine farms, and listing seven aquaculture projects in the Fast-Track Bill, which includes two new open ocean salmon farms," Jones said.
"These farms will increase our capacity for farmed salmon by 40,000 tonnes annually in addition to the expected 10,000 tonnes from New Zealand King Salmons pilot open ocean farm," he continued while stressing that the New Zealand Government has big plans for the aquaculture sector.
"Open ocean salmon farming is a big part of these plans, as it directly supports our focus on delivering profitable, resilient, and sustainable marine farms around New Zealand, that work for the regions, Māori, our marine farmers, and the economy as a whole," Minister Jones concluded.
