Photo / Kuterra LP website
Kuterra LP has been growing Atlantic salmon on northern Vancouver Island since 2013 in a facility currently owned entirely by the ‘Namgis First Nation.
June 3, 2019
Whole Oceans’ parent offers to buy majority stake in British Columbia salmon company
Photo / Kuterra LP website
Emergent Holdings, the parent company of Whole Oceans, which is developing a state-of-the-art land-based salmon aquafarm in Bucksport, is offering to buy a majority stake in Kuterra LP, a British Columbia-based company that pioneered growing salmon on land. Kuterra has been growing Atlantic salmon on northern Vancouver Island since 2013 in a facility currently owned entirely by the ‘Namgis First Nation.
By Staff
Emergent Holdings, the parent company of Whole Oceans, which is developing a state-of-the-art land-based salmon aquafarm in Bucksport, is offering to buy a majority stake in Kuterra LP, a British Columbia-based company that pioneered growing salmon on land.
The two companies have agreed on an offer that could give the U.S. investor a majority stake in Kuterra, which has been growing Atlantic salmon on northern Vancouver Island since 2013 in a facility currently owned entirely by the ‘Namgis First Nation. Terms were not disclosed, but Emergent Holdings said it would advance its mission to become a major producer of Atlantic salmon in North America through land-based recirculating aquaculture systems.
The offer requires approval by ‘Namgis First Nation and a decision is expected in early July.
Kuterra was the first commercial pilot scale operation in North America and the second in the world.
“Kuterra has shown that land-based RAS Atlantic salmon farming is environmentally safe and economically sound at scale, and that it grows premium quality, sustainably produced Atlantic salmon that meets consumers' expectations,” Emergent Holdings said in a news release sent to Mainebiz today.
Whole Oceans, the Portland-based company owned by Emergent Holdings, plans to build initially a $75 million land-based aquafarm to raise Atlantic salmon in Bucksport. It completed a purchase-and-sale agreement with American Iron and Metal Development USA LLC for a parcel on the site of the former Verso paper mill in Bucksport, according to a May 21 news release emailed to Mainebiz and expects to break ground on its “recirculating aquaculture systems” facility later this year.
Its Phase 1 project will initially produce 5,000 metric tons of Atlantic salmon annually, create 50 jobs and produce 5,000 metric tons of Atlantic salmon per year. The company plans over the next 15 years to produce as much as 20,000 metric tons per year, with an overall investment of more than $250 million in a phased, multi-year plan, according to the February 2018 news release announcing the launch of its project in Bucksport.
How Kuterra fits in with Maine plans
Jacob Bartlett of Emergent Holdings said Kuterra’s work in British Columbia accelerated the growth of the land-based aquaculture industry and would benefit Emergent's operations in several ways.
“Kuterra's expertise in growing fish will support Whole Oceans’ operations on the East Coast,” he said. “And when Kuterra's expertise is combined with Emergent's new production systems, we'll have a strong base of operations from which we can build our West Coast capacity."
Emergent Holdings aims to capture at least 10% of the North American market for Atlantic salmon by developing vertically integrated facilities close to consumers. “The combination of location and integration will improve logistics, limit the environmental footprint, and offer controlled, traceable, sustainable production of very fresh, premium quality Atlantic salmon,” the company said in its news release.
Kuterra chair Eric Hobson said the Kuterra board has recommended the Emergent offer to 'Namgis Council.
"We're delighted with the synergies between Emergent and Kuterra, which will accelerate our companies' business growth and land-based industry growth, while advancing the mission of the 'Namgis First Nation to develop next-generation Atlantic salmon aquaculture on land,” he said.
Whole Oceans President Jason Mitchell said that if the majority stake investment offer goes through, it would greatly benefit the Bucksport aquafarm project.
“Given Kuterra’s successful proof of concept, we are excited to work with their experienced staff and gain valuable insights and synergies to advance our workforce training, as well as technological and marketing expertise,” he said. “We look forward to being part of a larger picture that will deliver fresh, premium salmon to both coasts of North America."
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