Chilean fish-farming company Smart Aquaculture SpA is continuing to gather both community support and the information it needs to pass the environmental approval process associated with building a USD 180 million (EUR 170 million) recirculating aquaculture system (RAS).
The company recently concluded another round in the citizens participation process – in which a firm meets with stakeholders to share information regarding the proposed project and answers any questions the community may have. The citizen participation process is one of the requirements in Chilean legislation for companies to gain environmental approval of new projects.
“The aquaculture industry, specifically salmon farming, urgently needs to adapt to the regulatory and environmental changes that are necessary for the sustainability of the national food industry,” Smart Aquaculture Founder Camilo Ruiz told SeafoodSource. “Furthermore, society is demanding that [salmon] producers leave lake areas and some marine areas, which is why we have proposed a project that will implement cutting-edge technology to develop the entire production process of salmonids – from egg to commercial size [of approximately 5.4 kilograms] – in a single, closed facility, isolated from the outside environment and controlling the different productive variables.”
Ruiz’s detailed explanation of the RAS was meant to address increased questioning that has arisen recently from the Chilean public, environmental NGOs, and the government over the country’s USD 6.6 billion (EUR 6.2 billion) per year salmon-farming industry. Much of the scrutiny lies in the fact that the industry typically operates in bodies of water located in pristine areas of southern Chile, often within the boundaries of national parks and reserves.
Chile’s President Gabriel Boric himself has prioritized reform of the country's fisheries law since he took office in March 2022, and over the past year, his government has ramped up its regulation of the aquaculture sector. In response to the discovery of numerous violations, Chile’s regulatory authorities have limited the industry's operational expansion, making the path for new entrants tougher than it once was.
However, worldwide population growth is resulting in increased demand for salmonid production, Boric said, citing World Bank data that global consumption of salmonid species is likely to reach 4 million to 4.5 million metric tons (MT) per year by 2030, compared to current world supply of 2.5 million MT per year.
While Smart Aquaculture’s project is designed to take place on land, the process – which involves incubation, feeding, smoltification, and fattening of fish – includes the use of saltwater for the grow-out phase.
“Large producers such as Norway are already migrating to this type of production and there are increasingly more investments in these total cycle cultivation projects on land,” Ruiz said.
According to the firm’s environmental assessment submitted to the Chilean environmental evaluation service (SEIA), the project includes the construction of four modules that will produce 5,400 MT each year of salmonids, bringing total projected production to 21,600 MT a year when fully built.
Once the company obtains environmental approval, Smart Aquaculture will look to secure financing “from national and international banks,” Ruiz said, without giving further detail. That is likely to take six months to a year, after which the company would launch construction.
The company estimates build out of the RAS to take 15 months per module, reaching full production six years after having obtained the permits and resources necessary to build.
However, in the meantime, there is no estimated approval date for the environmental permitting, as it will depend on the different evaluation processes and the new measurements or studies requested by environmental authorities. Since 2020, Smart Aquaculture has prepared and submitted 17 technical-scientific reports, as well as relevant data to determine that the area of influence remains limited to the proposed project site.
If all goes as planned, the 15.6-hectare RAS project will be on 50.7 hectares of land in the rural sector of El Espino in the borough of Maullín, located in southern Chile’s Los Lagos region.
Ruiz said that the company chose this area thanks to its highway accessibility; proximity to food and processing plants, shipping ports, and airports; and existing infrastructure such as power lines. These advantages will help in reducing logistics costs and fossil fuel consumption, he said, while also highlighting the surrounding area’s availability of human capital, with workers already having significant aquaculture industry experience. The project is estimated to generate about 80 jobs in the construction phase and 120 additional jobs per module in operation.
Photo courtesy of Smart Aquaculture/Camilo Ruiz
