November 26, 2020

By Lynda Kiernan, Global AgInvesting Media

Pure Salmon, the land-based salmon farming company backed by 8F Asset Management, is investing $228 million in its Virginia production facility, marking one of the largest private equity investments in the region. 

Singapore-based 8F Asset Management is an impact investor with a pure-play framework, managing private equity funds that invest in vertically integrated aquaculture production and processing facilities using RAS technology. In 2018 it launched Pure Salmon, a land-based salmon farming company with the goal of becoming a global leader in the production of high-quality salmon.

This project, dubbed “Project Jonah”, will result in “the world’s largest vertically integrated indoor aquaculture facility”, which will use RAS technology from AquaMaof Aquaculture to produce 20,000 tons of salmon per year.

Since 1980, global consumption of salmon has more than tripled as demand for protein also climbs. And as wild stocks grow more depleted, salmon farming is stepping in to bridge the gap between market demand and production.  

At the same time, Recirculating Aquaculture System (RAS) technology has advanced to where its integration in land-based fish farming operations creates a scalable solution that closely mimics a fish’s natural environment at a lower cost of production.

In March of this year, 8F Asset Management raised $358 million to fund a global expansion that would see Pure Salmon RAS facilities established in Poland, Japan, France, and the U.S.

The capital raised by the private equity impact investor was committed by “leading family and institutional investors including several sovereign wealth funds, insurance companies, and pension funds from Europe, Asia, the Middle East, and the United States”, with additional funding from AquaMaof Aquaculture Technologies, Pure Salmon’s RAS technology partner.

“With this highly successful asset raise we have reached a critical milestone in the development of Pure Salmon and have truly begun our journey towards 260,000 tons p.a. production of sustainable salmon,” said Stephane Farouze, board director of Pure Salmon and chairman and founder of 8F Asset Management, in March. 

This capital is in addition to previous investments announced in support of Pure Salmon’s strategic expansion plans. In November 2018, 8F Asset Management announced its plans to invest US$162 million to build an industrial-scale salmon farm in Japan that was the first in a string of projects. 

The chosen site for Project Jonah – 203 acres of land in the southwest area of the state on the boundary between Tazewell and Russell Counties – was announced in February 2019 and purchased earlier this year. 

Pure Salmon applied for its permits this autumn, and preparations  are expected to begin over this winter. Once operational by the end of 2023, the facility could be responsible for creating as many as 200 jobs.

Locally, the project is also being funded by $1.5 million from the Virginia tobacco commission; $1 million dollars in loans from Russell, Tazewell, and Buchanan Counties; and a $10 million loan from the Virginia Coalfield Economic Development Authority.

Furthermore, if the company meets certain benchmarks, it could also capitalize upon significant tax allowances.

“If it comes to fruition, that’s great news for everybody,” said Evan Deinman, executive director of the tobacco commission.

– Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.