MarketandTechnologyTrendsinOffshoreAquaculture

WavECAnnualSeminar2012-12-12,LisboaDr.KarlCStrømsem

GlobalMariJmeASandOffTekAS

The export value of Atlantic salmon from Norway is 1.5 b€ larger than

the total export of wine from France

Norwegian Fisheries State Secretary, TekMar Trondheim 7 Dec. 2017

Aquaculture represent a large growth opportunity

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Capture Aquaculture World population

International aquaculture production and wild capture (million tonnes) •  International aquaculture market estimated

to USD 160 billion though the accessible market for offshore is approximately 12-14% of this total

•  Aquaculture exceeded wild capture in 2014 •  Production from wild capture at a maximum

– all further growth to be supplied from aquaculture

•  Salmon aquaculture production comprise ~5% of the total international aquaculture market and Norwegian salmon market comprise 50% of the salmon aquaculture market

Source: FAO FishStat, UN World Population Prospects (2015)

Potential for Aquaculture, Blue Economy

-  2050 we will be 9 billion people -  Demand 70% increase food production -  30% land area - 70% ocean area -  95% Land prod - 5% Ocean prod -  50% land area used for agriculture

The Norwegian gov. roadmap, salmon

Norwegian aquaculture market is at all-time high

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•  Salmon by far the largest species in the Norwegian aquaculture market

•  Value of Norwegian salmon export has grown at 12.5% CAGR 2001 – 2016

•  A combination of high price growth and volume growth

•  2016 export value: NOK 64 billion (6.8 b€)

•  Compared to NOK 350 billion (37 b€) total O&G export (O&G and technology where technology is around NOK 14 b€

Norwegian salmon export value (NOK billions)

Norwegian R&D concession scheme

The goal is to increase from 1 million tones today to 3 million tones in 2030 and 5 million tones in 2050. The market for engineering has to a very large extent been driven by the temporarily R&D concession scheme that was open from 2015 to November 2017. R&D concession scheme: •  Considerable innovation •  Considerable investment •  Solve Environmental issues •  Solve area limitations R&D concessions are awarded to applicants with highly innovative and capital intensive ideas. A concession is free of charge and can be converted into conventional concessions, if successful results, for a consideration of NOK 10 million (market price approximately NOK 80-120 million). Per 17. November 2017 closure date), there has been submitted 140 applications of which five have been approved and 18 have been rejected.

Background Applicant Concept Concessions Concept description County Status EngineeringOcean Farming AS (SalMar) Offshore 8 "Havmerd" basert på offshoreteknologi Sør-Trøndelag ApprovedGlobal MaritimeNordlaks Oppdrett AS Offshore 10 "Havfarm" for havbasert oppdrett Nordland Approved NSK Ship DesignAkvaDesign AS Onshore 1 Lukket merdteknologi Nordland ApprovedMNH Produksjon AS CCS 4 "Aquatraz" - semi-lukket merd Nord-Trøndelag Approved Seafarming Systems ASMarine Harvest Norway AS CCS 4 "Egget" - lukket merdteknologi Hordaland/Sogn og FjordaneApproved Mundal SubseaAtlantis Subsea Farming AS Offshore 6 Nedsenkbare oppdrettsanlegg Trøndelag Pending Sinkaberg-Hansen, Akva Group og Egersund NetNRS / Aker ASA Offshore 15 Halvt nedsenkbart offshore oppdrettsanlegg i stål Troms/Finnmark Pending Aker SolutionsStadion Laks SUS Offshore 15 "Stadionbassenget" - lukket flytende basseng Sogn og Fjordane/Møre og Romsd.Pending Dr. Techn. Olav Olsen ASLovundlaks AS Offshore 3 "Akula" - nedsenket produksjon av laks Nordland PendingAqua Star Invest AS Offshore 6 Flytteteknologi, hevertprinsipp Hordaland PendingOcean Aquafarms AS Offshore 13 "Hex Box" offshore arbeidsplattform Rogaland Pending Global MaritimeMariculture AS Offshore 16 "Smart Fishfarm" - helhetlig løsning for åpent hav ikke oppgitt PendingErko Seafood AS Offshore 16 "North Sea Fishfarm" Bunnfast stasjonær oppdrettsplattform for havoppdrettNordsjøen Pending Global MaritimeViewpoint Seafarm/Nova Sea Offshore 20 Modulært havanlegg Nordland PendingHavkar AS Offshore 6 Aqua Terminal - kompakte drifts- og håndteringsløsningerHordaland Pending Salt Ship DesignEide Fjordbruk AS Technology 3 "Salmo Zero" - lukkede sjøanlegg med resirkulering av produksjonsvannHordaland/Sogn og FjordanePending Aquatec-SolutionsCermaq Norway AS Technology 10 Teknologi for økt ressursutnyttelse, fiskevelferd og lusebekjempelseNordland Pending BioSortSFD Innovation AS Technology 6 Teknologi som forebygger lusepåslag og rømming ("Seafarm Pulse Guard")Rogaland PendingKvarøy Fiskeoppdrett AS Technology 4 "Fish Farm Watch" - operasjonell sanntids miljø- og beredskapsplattformNordland PendingBolaks Utvikling AS Technology 6 "Gras" - grønn resirkulering av akvakultur slam Hordaland Pending Lift UpOsland Havbruk AS Technology 6 "Bunnsolid" betongkontruksjon på bunnen Sogn og Fjordane PendingLerøy Seafood Group ASA Technology 5 "Fjord Farm" komplett konsept med dobbel sikring, slamoppsamling og hinder for lusepåslagHordaland Pending Egersund Net, Akva GroupBallangen Sjøfarm AS Onshore 4 Behandlingsenhet med ferskvann i merd Nordland PendingNekst AS Onshore 16 "Havliljen"-"Havplattform" - nedsenkbart anlegg Sogn og Fjordane Pending Marine Construction, ABB, Maritime EngineeringMyre Havbruk AS n.a. 5 "FLO FLO" oppdrettsmerd med dokkingstasjon Nordland PendingMarine Harvest Norway AS CCS 8 "Marine Donut" heldekkende, lukkede enheter Nordland Pending ØPDLerøy Seafood Group AS CCS 9 "Pipefarm" lukket flytende lengdestrømsanlegg Hordaland/Sør-Trøndel./TromsPendingMarine Harvest Norway AS CCS 6 Oppdrett i lukkede enheter i bulkskip Sogn og Fjordane PendingAquafarm Utvikling AS CCS 6 Integrerte semi-lukkede oppdrettsanlegg med GPR-merdHordaland/TrøndelagPending Aquafarm EquipmentOxyvision/Aakvik Holding CCS 5 "Salmoguard" - totalkonsept med barrierer som beskyttelse mot lus, redusert rømmingsrisiko m.v.Møre og Romsdal PendingAqua Viva AS CCS 6 Duo-ring, semi-lukket anlegg Hordaland PendingPure Atlantic AS CCS 46 Laks i skip - NØS>12 mil Rogaland PendingGrieg Seafood Rogaland AS CCS 10 Blue Farm, strekkforankret betongmerd Rogaland Pending Blue Farm, Egersund Ned, Akva Group, PloytecHydra Salmon Company AS CCS 4 Oppdrett i lukkede produksjonstanker Sør-Trøndelag PendingGrimstad Holding AS CCS 7 "Akvarium" bulkbåt som lukket oppdrettsanlegg Troms PendingEco Fjord Farming AS CCS 4 "Oasen" delvis lukket anlegg m/storskala planktonfiltreNordland PendingBiofish Holding AS CCS 4 "Biomerden" semilukket anlegg med lus- og rømmingsfrittHordaland PendingAlbatros Technology B.V. CCS 9 "Nereus" flytende RAS-anlegg Hordaland/RogalandPendingArctic Seafood Group AS CCS 3 2delt påvekstanlegg i sjø Nordland PendingArnøy Laks AS CCS 4 "Aquashield" - akvakulturanlegg med skjold mot luselarver og ytre fysiske farerTroms PendingNorthern Lights Salmon AS CCS 3 "OptiFarm" semilukket med bruk av filtrert vann, barrierduk og transportløsningerTroms PendingSalaks AS CCS 9 "Fjordmax" semilukket integrert oppdrettsplattform Troms PendingFishglobe AS CCS 3 "FishGLOBE" - lukket merdteknologi Rogaland PendingEidsfjord Sjøfarm AS CCS 17 "Eidsfjord Giant" lukket anlegg med behandlingsanleggNordland PendingGigante Offshore AS Offshore 8 "Supertankmerd" - rørkonstruksjon fortøyd på svai Nordland RejectedGifas Marine AS Offshore 4 "SubFishcage" - nedsenkbar stormerd Nordland RejectedBremnes Seashore AS Offshore 6 Totalkonsept for havbruk på eksponerte lokaliteter, inkl. bruk av tubenotRogaland Rejected Akva Group, Egersund NettAqualine AS Offshore 10 "Aqualine Subsea System" - nedsenket industriell produksjonFinnmark/Troms/Midt-NorgeRejectedMåsøval Fiskeoppdrett AS Technology 3 "Helixir" avlusningsflåte Sør-Trøndelag Rejected Stranda PrologBlom Fiskeoppdrett AS Technology 8 Teknologi for oppsamling av slam Hordaland RejectedNorsk Marin Fisk AS og Stjernefarm SUSTechnology 3 "AkvaHub" - behandling mot lus og AGD med ferskvann i lukket tankSogn og Fjordane RejectedEide Fjordbruk AS Technology 6 Åpen dataplattform og tilhørende systemer Hordaland/Sogn og FjordaneRejectedFolla Alger AS Technology 3 Integrerte laks- og taredyrkingsanlegg Nordland RejectedNorsk Sjømat Oppdrett AS Technology 4 "EnviroFjord" - Lakselusbehandling ved bruk av damp/varmluft ("Whooshh-systemet")Møre og Romsdal Rejected SeaSide/Optimar Stette Pure Farming AS (WFF) Technology 6 Energinøytral flåteløsning med totalkontroll på lus Møre og Romsdal RejectedSalmoTech AS Onshore 6 "SalmoWell" - konsept med bruk av ferskvann og bioskjerm kombinert med ny utfôringsteknologiNordland RejectedLerow AS CCS 8 "MARKOB" - semioffshore messingnettmerd med fartøybaserte servicetjenesterNordland/Sør-Trøndelag/Møre og RomsdalRejectedMarine Harvest Norway AS CCS 6 "Beck-cage" - offshore nedsenkbare bur Sør-Trøndelag RejectedKobbevik og Furuholmen Oppdrett ASCCS 4 "Steelline" - lukket produksjonsenhet i syrefast stål Hordaland RejectedSteinvik Fiskefarm AS CCS 8 Flytende lukket oppdrettsanlegg Sogn og Fjordane Rejected Flo, Polarny Maritime D&EEngesund Fiskeoppdrett AS CCS 3 Flytande lukka tilvekstanlegg (betong) i sjø Hordaland RejectedØyfisk AS/Blue Salmon SUS CCS 4 Stålanlegg på svai/lukkede tanker Nordland Rejected Momek Group

Overview of R&D applications

The Future of Aquaculture Farming, hypotheses

 

Traditional Farm

Large Closed Containment

System

Offshore Fish Farming

Closed Containment System (CCS)

Smolt Facility Traditional farm

Smolt Facility

Processing Facility

Processing Facility

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Aquaculture Value Chain

TO MARKET 0-250g 0 - 0.5y

FARMING (Current Value Chain) SMOLT

250g - 5kg 0.5y - 2y

CCS (Future) FARMING (Future) 1kg - 5kg 1y - 2y

250g - 1kg 0.5y - 1y

•  Current technology does not allow for production growth due to threat of lice infection and deceases

•  Extremely high profitability of farming leads to high willingness to invest in new production technology

•  The future farming solutions, all with the aim of reducing lice infection, will make the aquaculture value chain more complex with higher intensity of technology and assets.

•  Currently very high innovation and technological development. The temporarily R&D concession scheme has accelerated the development.

•  Current development moving towards expansion of the value chain to introduce three new technologies

•  i) small Closed Containment Systems (CCS) •  ii) Large CCSs, •  iii) offshore fish farms

From offshore technology to cage technology

Salmon aquaculture faces a large technological leap

Traditional fish farms Offshore fish farms

From offshore technology to cage technology

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Inspection draft

Size Comparison the Goliat Platform

-  Main Hull Diameter = 90.0m -  Keel diameter = 112.0m

-  Lightship weight = 57.500 [T]

Size comparison the Salmar Offshore Cage

-  Main Hull Diameter = 110.0m -  Keel diameter = 126.0m -  Lightship weight = 7.709 [T]

In production

-  Consept study 2013 -  FEED study 2013 – feb 2014 -  On hold!.... Remaining of 2014 -  Detail design Jan 2015 – juni 2016 -  Constr. follow-on Mars 2016 – juni 2017 -  Transport 16/6 – 5/9 -  Float-off/stability Sept 2017 -  «First fish» Tuesday 28/9

Timeline

Preline Fish Farming Systems, Lerøy Seafods

Preline is a closed containment system for breading post smolt (salmon up to 1 kg)

Hex Box

Travelling crane: •  Fish handling and feeding •  Cleaning, handling, replacement and

general maintenance of the net Module based feed storage: •  Silos with approx. 70mT capacity •  6 silos -> 420mT Module based containers for: •  Accommodation, technical rooms,

generator, workshop etc. Crane(s): •  Accordance to client requirement

(available vessels etc. sets criteria)

Square Box Offshore Fish farm – Topsides concept

North Sea Fish Farm