KIME Akva, headquartered in Finnsnes, Troms County, was established in 2020.
Photo: KIME Akva.
Private equity impact investment fund Ocean 14 Capital has announced a strategic investment in KIME Akva, a Norwegian cod farming operation.
The partnership, Ocean 14 Capital says, aims to supplement declining wild cod supplies with sustainable aquaculture as cod prices surge amid reduced quotas.
"With around a fifth of the global catch, Norway is one of the largest producers and exporters of cod. Cod supplies are facing headwinds with a 20% reduction in cod quotas in the Barents Sea in 2024 to 543,427 tonnes, on top of the 2023 quota reduction of 23%, driving prices higher," the investment fund said, in a statement announcing the partnership.
KIME Akva, headquartered in Finnsnes, Troms County, was established in 2020, and has its origins as a family cod farming business. The company now states its ambition as "to become a cost-leading, fully integrated cod farmer".
By 2025, KIME Akva aims to achieve in-house juvenile production to ensure high-quality output at lower costs, the company said. The farming firm holds licenses for 12,900 tonnes of maximum allowable biomass (MAB) and plans to expand from its current five farming sites to a total of nine farming sites by 2029, aiming to scale production to 24,000 tonnes of harvest weight annually by 2030.
“What started as a side-project to my father’s fishing company, has over time become a real solution to the reduction of wild cod fishing through incrementally decreasing quotas,” said Ørjan Jensen, chief executive officer of KIME Akva.
“The back story, which we recount on our website, is interesting, but what has become apparent over time is that with the right processes in place, farming cod in their natural habitat in Northern Norway is not only potentially profitable, but perhaps more importantly a sustainable answer to the global need for fish protein,” Jensen added.
Ocean 14 Capital Fund’s investment aims to bolster KIME Akva’s growth and to support innovations addressing sustainability challenges in cod farming, such as improving Forage Fish Dependency Ratios (FFDRs) and Feed Conversion Ratios (FCRs), as well as reducing waste and plastic pollution.
“We are excited to partner with the strong team at KIME to provide a sustainable, high-quality supplement to wild cod, stocks of which are under pressure for a variety of reasons," said Max Holtzman, Principal at Ocean 14 Capital, the Fund’s adviser.
"Through our partnership with KIME, the Ocean 14 Capital Fund gains a foothold in the most efficient operator, with a well-structured team and leadership, in a market that is rapidly intensifying,” he added.
KIME Akva said it also plans to explore eliminating forage fish from its feed ("Zero FFDR") and circular production models to make use of waste.
“We are excited to be working with the impact team at the Ocean 14 Capital Fund, as our aim is to lead the development of the sector by working with them to investigate adopting Zero FFDR and test Regenerative Waste production models,” Jensen said.
