Release date: 25 May 2022
Promoter – Financial Intermediary
REOCEAN ABLocation
Description
The project concerns a new, decarbonised, sustainable land-based salmon farming facility based in Säffle, Sweden with circularity and upcycling integrated into the facility at the outset. The farm will apply a number of circular/sustainable features including a Zero Discharge Concept utilising a Recirculation Aqualculture System; a biogas plant to turn waste into energy; local re-use of off-cuts from harvest plant; on-site renewable power generation. The new farm will eventually supply 10,000mt/annum representing 17.5% of Sweden's total salmon consumption.
Additionality and Impact
This Operation supports the Company's development of Sweden's first commercial scale inland salmon farming facility from egg to harvest, employing innovative technology, and including slaughtering, processing, packaging and storing components.
This bio-economy project, in the rural Värmland county, aims at supporting the local economy by i) establishing a domestic source of salmon production to serve the Swedish market, currently fully dependent on imports, ii) reducing the local unemployment by ensuring temporary jobs during project implementation and permanent jobs during operations, impacting supporting jobs in upstream and downstream supply value chain; and iii) efficiently and sustainably using the natural resources and energy through BAT operational setup at plant level using state of the art equipment and technology. The Project is aligned with the Bank's Climate action and Environmental Sustainability objectives.
The project will address a series of market failures: through its activities, it will generate positive knowledge externalities, as well as public health benefits through higher food quality and sustainable products, and reduce the environmental negative externalities such as water consumption, waste, sea water contamination and CO2 emissions.
The Operation improves the Company's access to both equity and debt capital and mitigates adverse impacts of asymmetric information confronted with SMEs that are not externally rated. The Company may not succeed in developing the new facility and achieving its social impacts to the same extent without the Bank's support.
The EIB's financial contribution is considered valuable to the Company, as the Bank is offering a venture debt loan on bespoke terms tailored to the needs of the Project and with flexibility that would be difficult to obtain in the market. Through its presence, the EIB will support the Promoter to attract a broader set of investors, which is necessary to unlock the additional financing needed to fully fund the Project.
Objectives
The project funds the construction of the Sweden's first land-based salmon farm, which will cover the entire farming process from salmon egg to adult harvest weight. The production plant is able to produce 10,000 metric tonnes of salmon per year and includes state-of-the-art slaughtering, processing and packaging units to provide qualitative, ready-to-sell salmon products in strategic proximity of distributors. Further, the project implements a series of technological innovations, such as the Zero Water Concept technology of Recirculated Aquaculture System (ZWC RAS) combined with a Zero Discharge Concept (ZDC). As such, the plant incorporates multiple sustainability and circular economy innovations aiming at i) reducing the water consumption through recycling and reusing wastewater, ii) reducing the carbon footprint from distribution, processing and feed, and iii) creating zero waste by selling production fall-off and maximising production outputs like sludge, for production of by-products. The project also aims to obtain optimal fish health and welfare through certified feed of sustainable origin, no use of antibiotics or vaccines, and minimisation of fish mortality. At full-scale production, the plant will have the capacity to provide 17.5% of Sweden's salmon consumption and support the Promoter's objective of to providing quality, sustainable and locally produced salmon to the Swedish market. The project will generate spillover effects towards the local and regional economy in Sweden by creating new jobs and knowledge throughout the value chain of the in-land aquaculture sector.
Sector(s)
- Agriculture, fisheries, forestry - Agriculture, forestry and fishing
Proposed EIB finance (Approximate amount)
EUR 48 million
Total cost (Approximate amount)
EUR 236 million
Environmental aspects
The project falls under the scope of Annex II of EIA Directive 2011/92/EU, modified by Directive 2014/52/EU, and is subject to an environmental impact assessment (EIA), as determined by the competent authorities for production and slaughtering. A separate notification is required for the activities of filetting, smoking, and packaging of products for delivery, pending for submission. The combined fish farm and processing facility do not fall into the scope of the Directive 2010/75/EU. The project is aligned with the EU Green Deal, Climate Action objectives, and the EU Bioeconomy strategy. The project includes energy efficiency and water saving measures at factory level, thus minimising the environmental footprint of the Promoter who is currently preparing its application for the Science Based Target initiative.
Procurement
Although the Promoter is a private company not operating in the utilities sector, and is thus not covered by EU directives on procurement, the Bank will require the Promoter to ensure that any procurement procedures are done in accordance with the relevant applicable EU procurement rules.
Status
Signed - 1/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).