Province confirms major aquaculture project for Placentia Bay

The Newfoundland and Labradorgovernment has reached an agreement with a company called Grieg Newfoundland AS that could this see province rival British Columbia inaquaculture production.

Municipal and Intergovernmental Affairs MinisterKeith Hutchings announced Monday in Marystown that Griegwill invest some $251-million ina project that will more than double aquaculture in the province and create roughly 325 direct jobs.

He said the province will commit up to $45 million to acquire an equity position in the company.

"This MOU sets the stage to make Newfoundland and Labrador the largest aquaculture producer in eastern Canada. We will rival the output of British Columbia, which currently leads among the Canadian provinces," saidHutchings.

"The project proposed by Grieg will lead to significant new employment and business opportunities for Newfoundlanders and Labradorians, particularly in the Burin Peninsula and Placentia Bay regions," he added.

Largest nursery/hatchery in Canada

Grieg's plans include a new $75-million state-of-the-art hatchery/nursery facility in Marystown that will produce seven million smolts annually to stock 11 sea cage sites for the subsequent grow out and harvest of 33,000 tonnes of Atlantic salmon.

Four bay management areas will be developed along the western side of Placentia Bay and near Long Harbour.

According to a news release, the hatchery/nursery will be the largest in Canada and one of the largest in the world utilizing the latest technology.

Grow-out operations will include new cage and netting system technology, automated feed systems, well boats and value added processing.

"This project will take our aquaculture industry to a whole new level and make us a major global player," saidFisheries andAquaculture MinisterVaughn Granter.

Company has Norwegian roots

Grieg Newfoundland AS is part of the Grieg Group of companies in Bergen, Norway, which has been involved insalmon farming for 23 years in Norway, Scotland and British Columbia.

Construction of the hatchery is scheduled tobe completed by 2017, at which time constructionof the grow-out sites will also begin.

The company plans to reach peak production by 2023, with a requirement for secondary processing, including a minimum of "75 per cent beyond dressed head-on."

All processing must take place in the province, the release stated.

GriegGroup spokesmanPerGriegJr., described thepotential for salmon farming in Newfoundland and Labrador as huge, and said the company will use modern sustainable farming methods.

"We believe the province can be developed into a substantial producer of fresh salmon products for the whole North American market," he said.

Ocean Choice International, one of the province's largest seafood processing companies, is a partner in the project, said Grieg.

Government's investment is part of a 20-year agreement, in the form ofan equity position in the company through preferred shares, with the investmentexpected to be repaid by 2035.

A formal agreement is expected to be reached by Jan. 31, said Hutchings.