“Closed Containment” project gets more government funding
Canada: Campbell River-based AgriMarine announced that it would get another CAD$ 3.41 million (~€2.47 million- 1CAD$ =~0.724€) from the Canadian government for it floating, solid-wall tank system
FishfarmingXpert, Odd Grydeland, August 8, 2011
While one arm of the Canadian government (Department of Fisheries and Oceans) has cast substantial doubt about the commercial viability of floating, solid-wall aquaculture systems for salmon, another department is providing large amounts towards a project aimed at demonstrating the opposite. In its latest financial report (March, 2011), AgriMarine posted a year-to-date loss of CAD$ 5,495,787, and a deficit of CAD$ 17,982,086. The company’s first attempt at raising fish in “closed containment” systems in British Columbia resulted in a write-off of inventory in 2010 of some CAD$ 1,211,407.
And while the company’s financial statement contains the following statement; “The Company continues to seek capital through various means including the issuance of equity and/or debt. The ability of the Company to continue as a going concern is dependent on raising additional capital financing and successful completion of the demonstration and commercialization of the closed containment salmon rearing technology project and eventually leading to commercial sales. The outcome of these matters is dependent upon factors outside the Company’s control. These conditions raise substantial doubt about the Company’s ability to continue as a going concern”, the future prospects must seem bright to the Canadian government and other investors that are pouring millions of dollars into the company. The following Press Release was issued recently;
AgriMarine and MBSAI Announce Additional Funding from Sustainable Development Technology Canada
AgriMarine Holdings Inc. (the “Company” or “AgriMarine”), the leader in floating closed containment technology for sustainable aquaculture, and the Middle Bay Sustainable Aquaculture Institute (“MBSAI”) are pleased to announce that Sustainable Development Technology Canada (“SDTC”) has increased its contribution to the Middle Bay solid-wall containment salmon rearing demonstration facility (the “Middle Bay Project”) located in Campbell River, BC from the $2.36 million previously committed to a maximum of $5.77 million. “Through our support for cutting-edge clean energy technology we are creating high-quality jobs and protecting our environment,” said Natural Resources Minister Joe Oliver. “This project demonstrates our leadership in driving technology innovation to help create a vibrant clean energy industry in Canada.”
The SDTC contribution will be advanced to MBSAI pursuant to specific milestones, while AgriMarine has committed $7.27 million to rear the salmon as part of the demonstration project. The increased contribution by SDTC will be used to provide additional support for the development and demonstration of a 4-tank salmon operation with an annual capacity of approximately 900 tonnes. The Gordon and Betty Moore Foundation and Coast Sustainable Trust, contributed to earlier milestones of the project.
SDTC is a not-for-profit foundation created by the Government of Canada to support the development and demonstration of clean technologies which provide solutions to issues of climate change, clean air, water quality and soil, and which deliver economic, environmental and health benefits to Canadians. SDTC supports technologies with the potential to both meet market demand and help achieve Canada’s environmental goals.
“SDTC’s contribution to the Middle Bay Project demonstrates the Canadian government’s commitment to fostering emerging clean technologies that will contribute to the strengthening of the environment, and solid-wall containment salmon rearing technology will assist in the protection of the marine environment and wild fish stocks”, said Richard Buchanan, President and CEO of AgriMarine. “We believe that the Middle Bay Project will continue to demonstrate that solid-wall containment salmon farming is a viable and cost effective alternative to net cage operations and is capable of supporting sustainable growth of the salmon farming industry in BC and around the world.”
“The technology being developed through this project is a great example of the combined environmental and economic benefits that clean technologies can provide to Canadians,” said Vicky Sharpe, President and CEO of SDTC. “It has the potential to increase the rearing capacity of the Canadian and global salmon farming industry by allowing for sustainable aquaculture growth in coastal communities, while minimizing interference with marine environments.”
