January 11, 2023

photo credit: RE:OCEAN

By Lynda Kiernan-Stone, Global AgInvesting Media

The European Investment Bank (EIB) has made a venture debt investment of SEK 530 million (US$50.85 million) in RE:OCEAN, a company developing Sweden’s first inland, large-scale fish farm in Säffle, Värmland.

Currently, Sweden imports nearly all of the salmon consumed in the country. Between 2017-2020, imports steadily increased, according to Statista, with filet import values touching US$337 million in 2020, and then soaring to US$461 million in 2021.

In an effort to shift toward greater domestic production, this investment , which is among the largest ever made in innovative and sustainable food production in the country, will support Sweden’s bio-economy by sustainably producing fish in what RE:OCEAN is calling a land-based ocean.

“We are thrilled with the EIB’s support,” said  Morten Malle, CEO, RE:OCEAN. “The EIB investment is a strong signal of trust and a cornerstone for other investors in our new, sustainable food production concept, and a result of 12 months of close cooperation.”

“This process also verifies our team’s and partners’ experience within the industry, our highly advanced solutions and new technology, that will enable consumers to enjoy clean, healthy locally produced salmon while safeguarding our environment.”

Notwithstanding global pandemic conditions that have been beyond our control, salmon farming brings great potential for growth. Since 1980, global consumption of salmon has more than tripled as demand for protein also climbs.

And as wild stocks grow more depleted with 90 percent of global marine fish stocks either classified as fully exploited or overfished, salmon farming is stepping in to bridge the gap between market demand and production.

RE:OCEAN’s inland “ocean on land” will provide a new scalable alternative way to meet this demand without further decimation of wild populations. It will also bring a new level of food independence to Sweden, where consumption levels of fish are 12 kilograms per person per year.

This innovative, commercial-scale, and highly green project deep in the woods of Värmland will ultimately produce 10,000 tons of fish per year, or 20 percent of all salmon consumed in the country.

It will employ cutting-edge zero-water circulation technology, and will include all production phases under one roof – from egg to harvest, and then slaughter, processing, and packaging, enabling direct delivery of fresh salmon to Sweden’s supermarkets and restaurants.

The salmon will be farmed in 88 pools under closely monitored conditions. The process will include the circulation of clean water that is used, then purified and reused in a closed system, creating an entirely clean environment for the fish, and allowing full control of the entire production chain without emissions or pollution of waterways.

“Not only will RE:OCEAN’s new facility provide the Swedish population with domestically and sustainably produced salmon, but it will also do so in an innovative and climate-friendly way, employing cutting-edge zero-water circulation technology,” commented Thomas Östros, vice president, EIB.

“In addition, food supply has become an important part of the critical infrastructure of any economy and the Säffle salmon facility will strengthen Sweden’s food self-sufficiency and resilience.”

Katarina Klingspor, chair, RE:OCEAN explained what having this investment in-hand means for the project and consumers moving forward.

“This EIB investment validates RE:OCEAN’s pioneering mission to establish a revolutionary, state-of-the-art technology on the doorstep of Sweden’s salmon consumers. With the support of the EIB and other investors, we plan to move forward with construction and ramp up to full production with ready-to-eat salmon by 2026.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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