2015 - review

2015

REVIEWLEGASEA

- NORWEGIAN BIOMARINE RESOURCES

LEGASEA THEBLUE MARINECLUSTER

The Mre region represents one of the most complete clusters within marine ingredients

in the world, covering all functions in the value chain from fish resource to customer,

and it has developed a close collaboration between industry, suppliers, university and

research institutions. Legasea has set itself the goal of becoming a global power centre

for the production of sustainable marine ingredients that promote health, based on

working up trimmings from fish processing, and bio-mass which is not used as food.

In 2013 Legasea was granted the status of a Norwegian Innovation Cluster under

the Arena programme. The results of the collaboration appeared sooner than expected.

Making use of trimmings in this way will improve sustainability and the creation of value

throughout the marine food industry.

Legasea started out with 23 members, to sort out the strategic important elements to

establish new value chains. The cluster has now reached a point where it is natural to

move to the next level, and wishes to invite more members to join in 2016. In Mre there

are around 500 companies associated with marine foods, representing an annual turnover

of around NOK 38 billion (cf. graph at top p.9).

Biomarine industry in Mre

Norway can take a global position within

marine ingredients

The curves point upwards

Interview - Leif Kjetil Gjendemsj, Pharma Marine

We must exploit the blue ocean opportunities

Interview - Tormod Thomsen, Firmenich

Sustainable development

24-hour quality control

Interview - Tore Roaldsnes

Marine proteins and peptides

Management and focus

Focus Areas

Campus lesund

kp

Summary

Funding

4-5

6-7

8-9

10-11

12-15

16-17

18-19

20-21

22-23

24

25

26-27

28-29

30

31

32

The results of the collaboration appeared sooner than expected. The cluster has now reached a point where it is natural to move to the next level.

ODDVAR SKARBPROJECT MANAGER LEGASEA

2015 REVIEW

Design ELLE mELLE, Photo Kristin Stylen, Text Stein Lauritsen

Vikomar

Nordic Wildfish

Marine Harvest

Marine Harvest

Br. Sperre

Arctic Nutrition

Rimfrost

Orkla Health/Denomega

Pharma Marine

Berg LT

Vedde

FMC/Epax

Vital Seafood

Havfisk

Vartdal Havfiske / Eros

Strand Sea Service

Firmenich Bjrge Biom.

Marine Ingredients

Molde

lesund

Fosnavg

Stranda

Brattvg

rsta

Mre represent the most important seafood region in Norway

HC Omega3

HC Protein Ingredients

Fish oil / fish meal

Raw material suppliers in the project

Marine businesses - potential Legasea members

LEGASEA INDUSTRY MEMBERS:

GC Rieber Oils

Fortuna Oils

Kristiansund

NorthSea

NorwegianSea

Norway

Sweden

Germany

PolandUnited

Kingdom

Norway is no. 2 nation globally within seafood export.

Mre represent one of the most important seafood

regions globally (some 650.000 tons yearly).

Mre represent one of the most complete clusters

within marine ingredients globally, with major players

like Firmenich (proteins/peptides) and FMC/Epax

(lipids/omega3)

Mre hosts some 500 companies within the marine

sector. The potential for value creation within

marine ingredients is huge.

BIOMARINEINDUSTRYIN MRE

7MARINE INGREDIENTS KP - LEGASEA

NORWAY CAN TAKE A GLOBAL POSITION WITHIN MARINE INGREDIENTS

The world is faced with enormous challenges, two of the most significant being climate change and population growth. OECD states the world population will increase from the current 7 billion to 9.5 billion by 2050. Today 2-3 percent of the worlds food comes from the sea. This figure must increase substantially, to meet demands of proteins and environmental measures. On a global perspective, health problems caused by lifestyle are increasing dramatically. According to the World Health Organization 38 million people die of lifestyle diseases every year. Legasea is certain that Norway can contribute to solving some of these global challenges by further de-veloping our position as a superpower within seafood and marine nutraceuticals.

DOCUMENTED HEALTH BENEFITS Health benefits from omega-3 are documented in more than 24,000 published articles. The fatty acids are important for the development of the brain and sight, and prevent cardiac and vascular diseases. Documentation for further health benefits will occur.

With regard to marine proteins, research has shown that they also will be highly significant for human health and the worlds health budgets. Legasea is currently cooperat-ing with companies and trusts concerned with research and documentation to obtain public approved health claims, which will imply market game changers.

Global challanges, national possibilities

MARINEINGREDIENTS

100 %UTILI-ZATION

SUSTAIN-ABILITY

ENVIRONMENT/BIOECONEMY

LIFESTYLEDISEASES

VALUECREATIONOF MARINEBIOMASS

LEGASEA

7

MARINE INGREDIENTS KP - LEGASEA

82,9

5,9

30

CARBO

ON

FOOTPRIN

TM

easured as KG CO

2/KG edible part at slaughter

SUSTAINABILITY AND 100 % UTILIZATION OF MARINE BIOMASSAt the same time, Norway is faced with economic readjustment, from an oil based economy into bio economy, as sustainability and environ-ment are crucial factors. Compared with other sources of protein, fish has limited carbon footprint. Consumers and global distributors are demanding documented sustainability from their suppliers.

Today some 250 thousands of tons of marine biomass are not being utilized for high-value products. Marine ingredients consist of lipids (mainly omega-3) and proteins (mainly fishmeal). The large quantities of offal and bycatch from fishing and aquaculture can be used to produce effective nutraceuticals. Our goal is 100 % use of produced marine biomass.

TRACEABILITY AND VALUE CHAINSMarine ingredients are subject to strict demands for traceability and documented origin, which give Norwegian producers a competitive advantage. Most Norwegian-caught white fish is MSC-certified, and the value chain from sea to oils and proteins is short and transparent.

Qualified calculations show that marine ingredients could represent an increase in value creation from the current NOK 5 billion to NOK 70 billion in 2050 (see page 15). In addition will the 100 % use of produced marine biomass improve value creation and reputation of the entire seafood industry.

BACKGROUND

The world population is projected to increase to 9,5 million people in 2050

Lifestyle diseases and malnutrition is a growing global problem

Norway needs to convert from an oil economy to a bio economy

Current food production is not sustainable

Brain development

Sarcopenia

Diabetes

Anti-Inflammatory

Vision

Digestive health

Cardiovascular health

ObesityPROTEINS

LIPIDS

Marine ingredients have welldocumented health effects

9MARINE INGREDIENTS KP - LEGASEA

GROWTH The report Value created from productive oceans in 2050 states that the Norwegian marine ingredients industry will generate turnover for NOK 70 billion (see p. 15). This as-sumes an annual growth rate of 7%. In the last two years the industrial members of Legasea have shown growth rates of 16 % and 10 % (fig bottom left p.9). Naturally, the figures will vary from year to year, from one company to another and between different markets, but we are clearly on track. The most impressive growth figure among Legasea companies was achieved by Pharma Marine with an increase of 66 % in 2014 over 2013 (fig bottom right p.9) The total results before tax for Legasea companies have developed in a positive direction in recent years (fig bottom mid p.9). The great leap from 2013 to 2014 is quite unusual, and due among other things to good prices for the fishing boat operators in Legasea, with Havfisk in the lead. However, the companies producing ingredients only, such as Vedde, Pharma Marine and Firmenich, showed solid improvements on the bottom line. Even though growth has not been strong recently in the largest market for omega-3, the USA, there is considerable growth in other markets, in China for instance. The global megatrend is for investments in personal health to increase. With far more than 90% of production going to export, both the marine food industry and ingredients industry clearly target the global markets. At the same time, international competition is in-creasing in parallel with market needs. Many countries are running major national programmes, aiming at leading po-sitions in marine ingredients. The Norwegian ingredients industry is not backed by any major national investments as we face this competition. On the other hand, Norway has an excellent reputation, which is certainly an advantage as a good starting point.

CREATION OF VALUESome interesting comparisons have been made by Professor Ragnar Tveters, who was responsible for the Norwegian Official Report (NOU) on the framework conditions for the marine food industry from the perspective that resources from fish should be used in ways that create the highest value throughout the value chain. The graph (mid p.9) shows that the growth in value creation is far greater in the marine food industry than in any other Norwegian industry, including the oil sector. A high-value analysis of the trimmings from the marine food industry will help to raise this creation of value from Norwegian marine biomass even further. Few other indus-tries, if any at all, have greater potential in the Norwegian transfer from an oil economy to bio-economics.

LOOKING AT THE LEGASEA COMPANIES, THERE IS POSITIVE

DEVELOPMENT IN TURNOVER AND PROFITABILITY. DURING

2013 A GROWTH BY 16 % AND 2014 BY 10 % TOOK PLACE.

THIS DEVELOPMENT ATTRACTS INTERNATIONAL INVESTORS.

THE CURVESPOINT UPWARDS

Norwegian marine ingredients

industry will generate turnover

for NOK 70 billion in 2050. This

assumes an annual growth rate of

7%. The growth rates of industry

members of Legasea were 16% in

2013 and 10% in 2014.

10

7 0006 0005 0004 0003 0002 0001 000

0

LEGASEA INDUSTRY -TURNOVER

LEGASEA INDUSTRY -BOTTOM LINE (EBIT)

PHARMA MARINE -TURNOVER

2012

2013

2014

4836

5613

6186

+16%

+10%600500400300200100

0

2012

2013

2014

368

403

529

+10%

+31% 120100806040200

2012

2013

2014

43

66 109

+52%

Mill. NOK

+66%

Legasea started out with 23 leading members in 2013, to catalyze fruitful processes to develop new value chains.During 2015 this goal was acieved. In 2016 it is time to move to the next level.

Marine businesses in Mre

Legasea members

45,0

40,0

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0

2013 2014 2015 2016

15%

42%

YEARLY TURNOVER (BILLION NOK)2015 & 2016 = ESTIMATES

The graph shows the relative development of value creation in selected industries in Norway 1980-2009.(Index year 1980=100%) Source: Professor Ragnar Tveters, UiS

Inde

x (1

980=

100)

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Mainland industry in general, service business included

Seafood industry. (Marine ingredients industry only partly included, due to difficult NACE codes)1 000

900

800

700

600

500

400

300

200

100

0

RELATIVE DEVELOPMENT OF VALUE CREATION

Oil and gas industry

11


TOGETHER WE HAVE CREATED A PROFITABLENORWEGIAN VALUE CHAIN

ON BOARD THE HYPER-MODERN

TRAWLER FT HAVSTRAND THE

CATCH IS EXPLOITED 100% INTO

FROZEN HEADED AND GUTTED

FISH, FISHMEAL AND OIL. THE OIL

GOES TO LEIF KJETIL GJENDEMSJ

AND PHARMA MARINE AS. WHAT

FOLLOWS IS A STORY OF HOW

NOTHING IS LEFT TO CHANCE.

Raw oil, observes Leif Kjetil, looking over the cargo of newly unloaded cod oil. Once we have refined it into con-centrated Omega3 oil, it will be branded CodMarine and distributed round the world in 190 kg drums. It will then be packed in capsules or small bottles and sold to health-con-scious customers who know what they are looking for.

REAL STUFF, PROVIDED BY HONEST PEOPLE But it must be made from cod. Why cod?There are several reasons. Cod as a species is caught ex-clusively for human consumption, which guarantees good handling and top quality raw material. Secondly, cod has a good combination of the important fatty acids EPA and DHA. Cod-liver and cod-liver oil have been known to be good for the body and health for a thousand years. Perhaps no-one knew why or how, but they knew. Refining and export-ing fish oil have given rise to huge fortunes up and down the Norwegian coast. This story is well-known and true, so

12

we can make use of it. We now have solid documentation of the effects of fish oil on humans, and future research will bring even more to light, says Leif Kjetil. He continues: We have another true story, this time about sustainability and traceability. It is widely known that Norwegian cod fishing is subject to strict quota re-strictions based on knowledge of the size of the cod stocks. The trimmings are also used, so that none of this important resource goes to waste. Pharma Marine supports MSC - The Marine Stewardship Council and is allowed to use the blue Ecolabel on its CodMarine. It shows that the product is based on sustainable fishing, which means a lot to our end-customers. And then theres traceability. We highlight the fact that our raw materials come from the FT Havstrand, which people can follow on Marine Traffic 24 hours a day. Our distributor in the US has a link on its website. The ship is active at its permitted location, with full transparency. Traceability has

become so important that the big supermarket chains will not look at your product if you dont document its origin and genuineness. Consumer power is enormous.

A COMPLEMENTARY MARKET-DRIVEN VALUE CHAINThis is the essence of the cooperation between FT Havstrand and Pharma Marine AS. The two complement each other in creating products for which there is a willing market. Leif Kjetil Gjendemsj is convinced of the importance of this kind of cooperation. Building a ship like the Havstrand costs lots of money. 100% exploitation of raw materials provides the owner with higher revenues and more avenues for distributing costs. Pharma Marine wins with a traceable first-class raw material which gives added product value. Globally, it is important that nothing is wasted, and that fuel consumption and emissions are proportionate to overall use value and value creation. For those of us in this venture, it means a lot that we have been able to create a 100% Norwegian value chain. This is clearly one of the benefits of cluster cooperation. Our collaboration with Havstrand is nothing unusual within the cluster. They say that no-one wins the world championship on their own.Thats quite right, and our ambition is for the region to become a global focus for the development of high-quality marine bio-products.

DID YOU KNOW?

FISHING TRAWLER HAVSTRAND

Total catch per year: 9,000 t

Weight of frozen H/G fish: 6,500 t

Weight of trimmings: 2,500 t

Weight of fishmeal: 500 t

Weight of oil: 100 t

Weight of water removed in

production of fishmeal and oil: 1,900 t

13


Norway has a potential to develop three global knowledge hubs. A global maritime-off-shore knowledge hub, a global petroleum-renewable energy knowledge hub and a global seafood-marine resource hub. Norways global positions are in maritime and marine.

Professor Torger Reve, BI Norwegian Business School

Norwegians proximity to the sea has for generations in-spired new thinking and innovation, which have given us leadership in many areas: navigation, off-shore oil service, underwater operations, development of ships and ship equipment, fishing, fish farming and marine ingredients. When Norway is to pull out of an oil economy, it seems very obvious that we need to transition to bio-economics and chiefly to marine bio-economics.

We are at ease with the ocean, we have the expertise and technology and we are able to cover more of the worlds requirement for proper nutrition in a sustainable manner. It is a matter of harvesting stocks responsibly on a foundation of research, more farming of fish and marine animals, the cultivation of seaweed and at the heart of it all 100% exploitation of produced biomass.

WE MUST EXPLOIT THE BLUE OCEAN OPPORTUNITIES

14

15


MADE IN

NORWAY

ENORMOUS POTENTIALThe Norwegian sea-based economy recorded turnover of NOK 90 billion in 2010. A working party set up by the Royal Norwegian Society of Science (DKNVS) and the Norwegian Academy of Technical Science (NTVA) calculated a potential of NOK 550 billion by 2050 (see diagram opposite). Devel-opment is driven by markets but contingent on expertise and technology. This gives Norway special advantages in the race to become a global seafood-marine resource hub.

MARINE INGREDIENTS FOR NOK 70 BILLION.Marine ingredients consist mainly of lipids (oils chiefly Omega-3) and proteins (fishmeal or liquid concentrate). These are in large measure produced from the trimmings from wild-caught and farmed fish. Norway, and the Mre region in particular, are currently world leaders in turning trimmings into high-value products. With a higher degree of harvesting, farming and cul-tivation, the working party calculates that the amount of trimmings will increase from 0.9 million tonnes in 2010 to 4.4 million tonnes in 2050. In the same period, value creation in the marine ingredients industry is expected to increase from NOK 5 billion to NOK 70 billion.

MRE REGION AS GLOBAL HUB FOR MARINE INGREDIENTSThe region is currently a major centre for fishing and ma-rine ingredients and an important factor in fish farming. A number of players work together through the LEGASEA business cluster. The cluster represents complete value chains, and is working to create even more of them. For local and global companies to work so closely towards shared goals is unique. At the same time, the Mre Region is a leader in the development, construction, equipping and operation of

advanced ships. These industries cooperate in the busisi-ness cluster Blue Maritime, with its status as a Global Cen-tre of Expertise. Both clusters are organised as part of the competence and innovation company lesund Kunnskapspark (KP/AAKP). Proximity and cooperation between clusters is vi-tal, for instance when a value chain starts life on board a fishing vessel. Here it is important that the treatment of trimmings is integrated in the handling of the catch and on-board production in order to achieve the optimum quality, efficiency and use of space. In this context, ship designers, ship owners and equipment suppliers are all important for producing Omega-3 and proteins. In total, the sea-based industry at Mre has an annual turnover of about NOK 100 billion. Few if any other regions in the world can match this.

RESEARCH AND EDUCATION ARE IN PLACEThe Mre Region also has a close cooperation with educa-tional and research establishments. Marine and maritime subjects are offered in secondary schools, technical schools and technical universities. Since 1 January 2016, the Tech-nical University of lesund has been part of the Norwegian University of Science and Technology (NTNU), Norways largest university. This will have positive consequences for both education and research in the relevant areas. Mrefor-skning Marin, a company managed from lesund, is involved in several research projects, including cultivation and dry-ing of macro-algae to produce high-quality proteins.

MADE IN NORWAYmust be the aim

Per Sandberg - Norwegian Minister of Fisheries

16

2010 2030 2050

600

500

400

300

200

100

0

NORWEGIAN MARINEVALUE CREATION 2050

Bioeconomy is all about developing new knowledge and new value chains. It is advanced industrial exploitation

of marine biomass and rest raw material.

Within this field there are opportunities I strongly want to contribute to take to the next level.

Per Sandberg

Sea farming

Suppliers

Marine ingredients

Wild catch

Algae

Others

Billio

n N

OK

The newly appointed Minister of Fisheries Per Sandberg visited Legasea , Firmenich and

Nordic Wildfish 13 January 2016.

17


MAJOR SWISS GROUP OPTEDFOR NORWAY AND LEGASEA

THE SWISS FIRM FIRMENICH IS ONE OF THE WORLDS LEADING FLAVOUR HOUSES,

SUPPLYING FLAVOUR AND FRAGRANCE INGREDIENTS FOR THE FOOD AND COSMETICS

INDUSTRIES WORLDWIDE. THE GROUPS SUBSTANTIAL INVESTMENT IN MARINE

INGREDIENTS WITH HEALTH BENEFITS IS CONTROLLED FROM ELLINGSY, NORWAY.

Firmenich acquired Bjrge Biomarin AS in 2002 in the light of solid knowledge of the following global trends: in the rich world people were becoming increasingly aware of the food they were eating, while there was increasing interest in sustainable ways of covering the protein requirements of a growing world population. Marine bio-lipids (oils) and fishmeal proteins have an enormous potential. General Manager of Firmenich Bjrge Biomarin and Di-rector Global Category Seafood, Tormod Thomsen, explains why Norway is so important: Expertise, sustainability and ethics, he says, without a moments hesitation. In Norway, and especially the Mre region and among members of Legasea, people understand the whole value chain and have tremendous expertise in creating high-quality products from trimmings from sus-tainable fisheries. Norway also has strict quota regimes and well-regulated working conditions in all areas of working life. Firmenichs customers include global companies who are very insistent that all raw materials and production can be traced and documented. Only the most scrupulous suppliers can be accepted.

LIFESTYLE DISEASES AND BASIC NUTRITIONIt is well known that marine oils and proteins are good for health, but isnt that just a fad in the industrialized West? In 2050, there will be 9 billion humans on the earth. By that time, we will not just be thinking about health; there will be a huge protein deficit. Meat consumption will no longer be sustainable and the worlds fishing re-sources will be under pressure. A large part of the worlds population will be surviving on relatively low-nutrition maize or rice. One of the avenues being researched today is whether marine proteins from trimmings can be used to supplement this diet. If the answer is yes, and we can extract even more of this raw material, we will be moving in the right direction.

Firmenich spends SFR 300 million 10% of the Groups turnover on research and development. Most of this is related to the future needs of a world facing new challenges.

STRONG FAITH IN MARINE PEPTIDES Mr. Thomsen explains that Legasea is focused on devel-oping products and areas of application which can be scaled up to meet the worlds rising demands. Products based on marine peptides come into this category. It is well known that their anti-inflammatory properties are beneficial for people with stomach and digestive problems. New research is investigating the ability of marine peptides to stabilize blood sugar levels, pro-vide feelings of fullness and, not least, to counteract sarcopenia the muscle loss that comes with aging. Sarcopenia is part of the normal aging process, and one of the main causes for falls in elderly people. Research of this type to produce scientific docu-mentation is crucial, as all health benefits of ingredi-ents and dietary supplements need to be documented. (See article on page 24).

GLOBAL COMPANIES IMPORTANT IN ESTABLISHMENT OF NEW MARKETS Your company is the dominant member of Legasea. Do you enjoy benefits which other, smaller companies are unable to achieve? Establishing new markets and commercializing new products can be hard work and time-consuming. Firmenich has long-term customer relations and on-go-ing dialogues with several of the worlds food giants. If we can provide new products and create volume, it will be much easier for our smaller colleagues to achieve success with equivalent products for other customers who also want a slice of the cake. This is a global arena after all. There are commercial opportunities for us all, Thomsen concludes.

17


DID YOU KNOW?

FIRMENICH

Established 1895

Family owned

Group turnover: 3 bn SFR (2015)

No. of employees 6,000

Manufacturing: 28 sites

R&D centres: 4

Global presence: 63 countries,

100+ markets

SUSTAINABLE DEVELOPMENT

Consumer groups have a particular responsibility for the enor-mous impact of the idea of sustainable development. We all remember the case of palm oil. Production is destroying the rain forest, and anyway the product is bad for your health, the saying went. Consequently, traders refused to distribute it, and within six months, food producers were well on the way to replacing palm oil with other solutions. The demand for sustainable de-velopment is a global trend, which is closely followed by large international businesses. Besides, the big consumer groups are not just content to make demands. They are also willing to pay more for sustainable products with a documented life cycle. As a result, documented sustainability has become a significant sales argument all over the world. The Paris climate deal will only reinforce this development.We have seen how production of marine ingredients based on trimmings is contributing to sustainable development.

19


7 OUTOF 10VESSELS WHICH PROCESS

BYPRODUCTS ON BOARD ARE

LEGASEA MEMBERS, WITH A

HOME BASE AT MRE.

20

ENVIRONMENT:Much of the trimmings from Norwegian seafood production goes for further processing. The majority of this biomass goes to production of feed for fish and livestock. Nevertheless, 250,000 tonnes of white fish trimmings from on-board production in sea-going fishing vessels are flushed out to sea. This biomass is a valuable resource and a focus area for Legasea. Seven out of ten vessels which process byproducts on board are Legasea members, with a home base at Mre. Advanced factory plants can convert 100% of the trimmings into high-value products. And opti-mum use of resources is an important environmental meas-ure. All Norwegian fishing for white fish is MSC approved. The vessels are designed and equipped for low fuel consumption and reduced emissions. Legasea members co-operate closely with the maritime cluster at Mre, which is a world leader in the development of environmentally friendly ships.

ECONOMY:Handling and exploiting trimmings on board ship requires a significant investment. The production of ingredients for animal feed has barely justified these investments, which is one of the reasons why so much raw material has vanished overboard. The profitability of producing marine ingredients for human consumption is far greater, despite the higher investment. We are convinced that this profitability will lead far more vessels to think afresh, so considerably less of the trimmings will be lost. Higher profitability also means that fishermen can keep up with developments and replace their fleets with more environmentally friendly ships, making even better use of raw materials.

SOCIAL:Research shows that seafood is valuable for health in many ways. It has also been demonstrated that even Norwegians have a lower intake of essential substances than the au-thorities recommend. Eighty per cent of them should be taking a dietary supplement based on marine ingredients. In some parts of the world, the need is far greater. Legasea is working to ensure that far more of the ma-rine biomass goes to human consumption in the form of dietary supplements and food ingredients. This will have a positive effect on human health and quality of life in countries at many different levels of development.

ENVIRON-MENT

SOCIAL

SUSTAIN-ABILITY

ECONOMIC

VIABLE

BEAR

ABLE

EQUITABLE

The most frequently quoted definition ofSustainability is from Our common future,also known as the Brundtland-Report (1987).

21


24-HOURQUALITY CONTROL

Natalia Rnneberg Dahl is Key Account Manager for Eurofins Food & Feed Testing Norway AS. The company provides a variety of services to member enterprises in Legasea, but at present the greatest interest is in NIR analyses Near In-frared Spectroscopy based on the reflection and absorp-tion of near-infrared radiation. Analyses are performed with a small device at the companies premises, and results are ready within a couple of minutes. We met Ms Dahl in the Processing Bay at Vedde AS, producers of fish oil and fishmeal, and asked her to explain: The NIR instrument is trained to analyse different nutrients in a given material by calibrating the instru-ment on the basis of chemical analyses. Whenever a sample of oil or fishmeal is tested, the result of the analysis is instantaneously checked against Veddes own calibration data, which is stored on a Eurofins server in the USA. If the operator at Vedde receives a non-conforming test re-sult, this is confirmed almost simultaneously by the server, and the operator is able to adjust production or take other action immediately. So what is being measured?With fishmeal, its normally water content, protein con-tent, fat and ash. With oil, we measure the contents of EPA, DHA, total Omega-3, glycerides, ethyl esters and antioxi-dants. This reflects the quality requirements demanded by the LEGASEA companies customers.

Ola Dybvik, CEO of Vedde AS, is keen to build up experi-ence with NIR: We test our production continuously and get the results back straight away. Bear in mind that the processing industry operates 24 hours a day. Previously, we had to wait for the laboratory to open, and chemical analyses took time. Now, the process operators can run NIR analyses at any time of day and are able to correct production as they go. This allows us to integrate our quality control and pro-duction management, and achieve better product control. Such advances are very valuable to us. We still need to use chemical analysis, but NIR is here to stay.

IMPORTANT TO TAKE A LEADING ROLE IN DEVELOPMENTMs Dahl has nothing but praise for the Legasea members: They show an exciting combination of high standards and openness to all kinds of solutions including some from entirely different sectors. Eurofins originally developed NIR oil tests for analysing biodiesel. We are now working together to find new analysis pa-rameters, such as oxidation parameters, which will boost the products from the Legasea companies even further up the quality scale. We know that testing and documentation requirements can only become stricter, so why wait? We get a competitive advantage from presenting the solutions before the customer has formulated its requirements.

EUROFINS SCIENTIFIC IS A WORLD LEADER IN

CHEMICAL, MICROBIOLOGICAL AND SENSORY

LABORATORY ANALYSES. THE GROUP HAS 20,000

EMPLOYEES IN 39 COUNTRIES, BUT WHEN IT

DECIDED TO FOCUS ON MARINE INGREDIENTS,

LESUND AND LEGASEA WERE A NATURAL CHOICE

FOR FURTHER DEVELOPMENT.

22

20,000EMPLOYEES

39COUNTRIES

With fishmeal, its normally water con-tent, protein content, fat and ash. With oil, we measure the contents of EPA, DHA, total Omega-3, glycerides, ethyl esters and antioxidants. This reflects the quality requirements demanded by the LEGASEA companies customers.

23


MODERN FISHERIESARE VERY MUCH AHIGH-SKILLS INDUSTRYTORE ROALDSNES, CEO AT NORDIC WILDFISH AS, IS CONVINCED THAT NORWEGIAN

TRAWLERS WILL ONCE AGAIN BE ALLOWED TO PRODUCE FILLETS ON BOARD, WHICH

MEAN MORE OF HIGH QUALITY TRIMMINGS. IN THE MEANTIME HE IS REBUILDING THE

FACTORY FACILITIES ON THE TRAWLER MOLNES, IN ORDER TO DEVELOP EXPERIENCE

AND SKILLS IN HYDROLYSIS-BASED EXPLOITATION OF THIS VALUABLE RAW MATERIAL.

24

MADE IN

NORWAY

In order to protect shore-based fish processing, Norwegian factory trawlers have only been permitted to produce head-ed and gutted (H/G) fish. Unfortunately, the shore industry has failed financially and H/G fish are being sent to China for filleting and further processing. Tore Roaldsnes is not alone in feeling that Norwegian quality fish and marine bi-omass products known as trimmings ought to be processed in Norway and sold as 100% Norwegian. The plan is to build a whole new trawler, Tore Roaldsnes says. It will have an on-board factory for fillet production and further processing, fractioning of the trimmings into different categories, and hydrolysis-based production of high-quality fishmeal and oil for human consumption. Compared to H/G production, filleting gives more trim-mings with more regular fish flesh. The time from catch to processing is also short, so the quality is first class. Currently, most on-board produced fishmeal goes to feed-production. Now we want to take it higher up the value pyramid.

FT MOLNES AS A FLOATING LABORATORY While the new trawler is still at the planning stage, wait-ing for an amendment to the legislation, FT Molnes is being restructured at the Vard Sviknes shipyard. A new factory is being installed, including a hydrolysis unit for produc-ing liquid protein concentrate - an ingredient for salmon feed made from trimmings from on-board H/G production. Hydrolysis involves a very gentle treatment of the raw materials, partly because the method requires far lower temperatures. The heat for this is recycled from the en-gine, so it costs nothing and is emission-free.

WHY SALMON FEED?Think of it as a result of cluster thinking. We need to develop experience and skills. The fish farming industry needs marine ingredients. Salmon feed must not be made of salmon, and fishmeal from herring and mackerel has become costly. In addition, Norwegian fish from the stocks we trawl is MSC-certified. That is a story which Norwegian fish farmers can tell their customers.

100% NORWEGIAN

YOU MENTIONED A LABORATORY?As I see it, we are still at the early stages of exploiting marine biomass. So, in addition to being good at running this type of production unit, we need to work hard at finding out what else we can get out of it. Fish bones will be a separate project. We know that fish calcium is more easily absorbed than other calcium, and that osteoporosis is a problem for both individuals and for health budgets. So we have to find out how we can handle the resource of fish bones with a view to medical production. We must never stop looking for new opportunities.

TORE ROALDSNES EMPHASIZES THE IMPORTANCE OF TAKING AN ACTIVE PART IN CLUSTER COOPERATION: There is always someone with knowledge to share and someone with a need to be met. That creates an incredi-ble dynamic. And here Im not just talking about the marine bio-industry cluster. I can assure you, the shipyard here has met some challenges of its own in installing the new pro-duction facilities on Molnes, which will prepare them for building the ships of the future. And thats a skill we need.

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Many studies have been carried out, and they point in the right direction. Fish proteins may be important in prevent-ing lifestyle diseases such as obesity, high blood pressure and diabetes, commonly known as metabolic syndrome dis-orders. Whats more, the emerging scientific data collected from both animal and human studies show that fish protein hydrolysates may have significant biogenic effects affect-ing blood cholesterol, postprandial blood glucose, satiety, fat metabolism and deposition, inflammation, and muscle protein synthesis, even at very low dietary concentrations. Overall, fish protein hydrolysates and their health related functional qualities make them useful as nutri-tional tools for weight, blood glucose and blood pressure management as well as for stimulating protein synthesis in muscle tissue and improving digestive health. Studies also suggest that fish protein hydrolysates may be used as sports nutritional tools to improve performance as well as aid recovery following training and competition. Starting in 2017, we will also begin to look system-atically at possible health effects from combinations of ingredients, known as cocktail effects. There are several studies which suggest that omega-3 and marine peptides could have positive effects in combination.

HOW WE ARE BUILDING UP THE NETWORKWe are setting up collaborations nationally and internation-ally, with universities, hospitals and others in the health and welfare services. In this way we gain access both to laboratory research and clinical research, which provides considerable breadth and strong progress. In April 2016 Legasea and Firmenich are organising a symposium, which will gather 80-100 of the worlds leading researchers. There is enormous interest in a theme like this, which can enhance quality of life and help to control grow-ing health costs.

HEALTH EFFECTS OF MARINEPROTEINS AND PEPTIDESMUST BE DOCUMENTEDTHERE ARE GOOD GROUNDS FOR CLAIMING THAT MARINE PROTEINS AND PEPTIDES HAVE A POSITIVE

EFFECT ON HUMAN HEALTH AND QUALITY OF LIFE. LEGASEA IS NOW BUILDING UP AN INTERNATIONAL

NETWORK OF EXPERTS ON PROTEINS IN ORDER TO DOCUMENT HEALTH CLAIMS AND HAVE THEM OFFI-

CIALLY APPROVED IN THE SAME WAY AS FOR OMEGA-3. WHEN WE SUCCEED, IT WILL OPEN UP ENORMOUS

OPPORTUNITIES IN PHARMACEUTICALS AND THE FOODSTUFF INDUSTRY.

DID YOU KNOW?

LOCAL COLLABORATION

Linda K. Nygrd at Molde University College is taking her doctorate for investigating whether marine peptides can delay natural sarcopenia (loss of muscle mass) in the el-derly. A clinical study will be carried out, in which it is hoped that results will show a measurable reduction in fall injuries in patients taking these peptides.

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MANAGEMENTAND FOCUS

PER ERIK DALEN ELISABETH MARK STLE MARIANNE SYNNES MARIT AURSAND ODDVAR SKARB

TORMOD THOMSENLEIF KJETIL GJENDEMSJBJRNAR KLEIVEN TORE ROALDSNESODD GJRTZ

For all organisations it is vital to find the balance between long-term development and short term results. Legasea is built on the following principles:

1. The purpose of Legasea is to serve as a catalyst for market-driven commercial development.2. We want a close-knit and homogenous organisation, where industry has a majority and management functions in all responsible bodies. To the greatest possible extent, the leaders of the Focus Groups will also be member of the Steering Committee/ Management Group.

In this way, long-term aspects such as identity, attractive-ness as a host, education and R&D will also be based on the needs of the commercial actors.

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MADE IN

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MARINE LIPIDES MARINE PROTEINSAND PEPTIDESThe perspective of Legaseas mission is long-term industri-al development. New value chains are to be established, and new technological solutions must be set up. It was expected that reaching target 1 would take 35 years. Through the efforts of innovative companies and good collaboration in the cluster, the first product in the new, entirely Norwe-gian value chain was already out in the market in 2015. This product was CodMarine, distributed by Pharma Ma-rine in the USA. The raw oil is extracted from trimmings on board F/T Havstrand. CodMarine has all the properties which Legasea is endeavouring to establish as standard: sustainability, Norwegian origin and full traceability, and a degree of freshness that can hardly be exceeded.

The new value chain also enhances sustainability, creation of value and the reputation of the fishing fleet, since off-cuts that previously were washed out to sea are now the raw material for products in nutrition and health products. It also helps to meet both national and global challenges. In principle, target 1 has been reached for lipids. Thus the objective is shifted towards increasing volumes, so that imported raw oil can be replaced by raw oil based on Nor-wegian biomass.

With regard to the protein content of trimmings from the fishing fleet and other Norwegian sources, there are two particular challenges:1. The market for marine proteins and peptides lacks ap-proved health claims like those for omega-3. 2. The technology must be improved to achieve the highest quality, which is required for high value products used in human health and nutrition.

The Steering Committee and the Focus Groups have initiat-ed the following measures and projects in 2015: PROMAC (Research Council of Norway/NFR project led by Mreforsking) with several focuses, one of which is drying technology. Collaboration with Tafjord Kraftvarme is hoped for, as a new infrastructure arena. A separate project has been carried out to define possible drying technologies. Firmenich is investing tens of millions of Norwegian Kroner in a new production line. Nordic Wildfish several hundred million Kroner in new technology to process trimmings on ships at sea. On 1 March 2016, F/T Molnes will become the worlds first white fish trawler with hydrolysis plant on board. Legasea has set up a Network for Health Effects to channel (inter)national community activities to document health effects of marine proteins and peptides. Publicly approved health claims are required if the market is to develop.

Target 1 for marine proteins and peptides remains in force. Efforts are being intensified in 2016 to document health effects. Nordic Wildfish and Firmenich will see the effects of their investments in technology during 2016.

FOCUS AREAS

1 DEVELOPE COMPLETE, COMPLEMENTARY AND MARKET DRIVEN VALUE CHAINS:

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R & DPROJECTSBUSINESS

2 4

3

COLLABORATION WITH LEADINGACTORS IN THE MARKET

TO BECOME KNOWN AS A LEADINGMARINE INGREDIENTS CLUSTER

STRENGTHENING THE CLUSTER MECHANISMS

It is an obvious precondition that developments in the cluster must be driven by the market. 2015 was a break-through year for the cluster from several angles. Firmenich (p. 16), assumed active leadership of developments in the market for marine proteins. The group has decided to in-vest globally and develop marine peptides for the health and nutrition sector. The headquarters for this are in lesund. Firmenich is core-listed with global actors, and in direct dialogue with them.

Legasea participated for the first time with its own stand at Vitafoods Europe 2015, the worlds leading trade fair in the field of nutraceuticals. Based on the experience gained, Legasea will participate with a national pavilion in 2016. Among members taking part, Orkla, the largest brand-ed consumer goods conglomerate in the Nordic region will be represented by the Orkla Health division, Denomega.

Several measures have been taken to strengthen the cluster mechanisms. The most important of these was to introduce professional networks as a new level in the organisation. Their purpose is to organise a tangible collaboration which will benefit the creation of value in the companies and/or their environmental audit. Three of these networks have been established: Duties/regulations, By-products and Health effects. Some 30 people from among the mem-bers are active in the professional networks. This element of the organisation will be further developed in 2016.

During 2015 Legasea has taken several small steps towards becoming an internationally recognised cluster, but it is a long route. Legasea was invited to Open Days in Brussels in 2014, and was subsequently one of two bio-economic clus-ters invited to Growth in Blue Bio-Economy, the Nordic Council of Ministers top-level conference in 2015. The Au-gust edition of Innovations of Food Technology introduced Legasea in a feature entitled Unlocking the potential of marine ingredients.

Work on international profiling will be intensified in 2016, with special focus on: 1. The Legasea Signal conference in April, in collaboration with Firmenich, where the aim is to gather the worlds leading researchers in the field of health effects of marine proteins and peptides. 2. A guided tour for the press, introducing international journalists to the region and the members of the cluster.

R & DPROJECTS

INSTITUTES

LEAGAL ENTITY PROJECT MANAGER STEERING COMMITTEE

KNOWLEDGE

BYPRODUCTS

MARKET INFRASTRUCTURE

HEALTH EFFECTSREGULATORIES

HOST ATTRACTIVENESS

GENERAL MEETING

Strategic groups

Reporting

Operationalgroups

SEE BACK PAGE

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NTNU IN LESUNDThe University College of lesund merged with the Nor-wegian University of Science and Technology (NTNU) on 1 January 2016, assuming the new name of NTNU in lesund. The university is a central player on the campus, and is experiencing a record demand for study places in marine and maritime subjects. There is vigorous growth in busi-ness-related research too. The prestigious Centre for Re-search-Based Innovation (SFI) was established at the uni-versity in 2014. SFI MOVE Marine Operations has as its main goal the establishment of a world-leading research and innovation centre for demanding marine operations.

CAMPUS LESUND IS GROWINGThe Norwegian Maritime Competence Center (NMK) has been successful in both the maritime and the marine sectors in Sunnmre District. The owners are now investing more than NOK 500 million in a 15,000 m2 expansion. NMK 2 will be ready for occupation in 2017. Naturally, we cant close our eyes to the current nega-tive reports from the maritime and oil and gas industries. But we feel our perspective has to be higher and more far-

sighted. Marine activities in particular will see a brighter future, says Board Chair of NMK, Leif Arne Langy.

COMBINING STUDY COURSES WITHIN MARITIME OPER-ATIONSNTNU in lesund has signed a tenancy agreement for the fourth floor of the new NMK2 building. The plan is to gath-er all nautical activities, with all the simulators and the Maritime Operations course centre, in one location. The project will strengthen us as a leading national location for maritime education, research and training courses, says Marianne Synnes, Vice-Rector of NTNU in lesund.

SEVERAL NEW TENANTSAlongside NTNU in lesund, the local County Council will also be relocating its marine and maritime courses from Fagerlia Secondary School and lesund Technical School to the new premises. Other tenants will be the internation-al group, Inmarsat Solutions, and Blue Ocean Innovation Arena AS.

- A POWER CENTRE FOR BLUE OCEAN INDUSTRIESCampus lesund is a completely new way of thinking in education, research and business development. Here you will find Norways most fully integrated teaching and innovation arena. Nowhere else are theory and practice better combined. Nowhere else are business and the academic community more closely connected. This is how to turn knowledge about the seas into Norways future livelihood.

CAMPUS LESUND

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BLUE OCEAN INNOVATION ARENA ASKP and SIVA are forming a new joint stock company to take part in implementing the open innovation arena of the future at Campus lesund. Blue Ocean Innovation Arena is intended to be a shared innovation infrastructure for the whole area of sea-based industry. It will house the promising new technology areas of Virtual Prototyping, Big Data and 3D Cave. It will also offer a high-speed incu-bator for entrepreneurs and growth businesses. The dynamism of Campus lesund is attracting great national and international interest, and every year the campus receives a large number of visitors and delega-tions, wanting to know more about research, education and business activities in the marine and maritime clusters. Campus lesund has become a meeting place of choice for anyone with an interest in marine and maritime industries.

DID YOU KNOW?

CAMPUS LESUND

Campus lesund currently consists of the Norwegian University of Science and Tech-nology (NTNU) in lesund, the Norwegian Maritime Competence Center (NMK), lesund Technical School, Fagerlia Secondary School and Sunnmre District Museum. Companies located on the Campus include: Rolls-Royce Marine, Aker Solutions, Offshore Simulator Centre, Mreforsking, Sintef, KP, Patogen, Zacco and about 20 more large and small businesses. In total, there are about 3000 students and 1500 employees on the Campus.

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Occupying a central position on Campus lesund is the inno-vation company KP. The companys core business is helping to create the workplaces of the future and an attractive region for living and working. KP is currently a regional magnet for innovation and business development, operat-ing one of Norways most complete incubator systems, the Blue Maritime Cluster. (Global Centre of Expertise) Legasea, Norwegian Rooms and several other national and international projects. The County of Mre og Romsdal is currently the home of world-class sea-based business clusters. Many of KPs activities are linked to these important industries, but at the same time, the company is actively endeavouring to transfer knowledge and experience of innovation processes, organ-isation and culture to other industrial settings and public sector activities. According to KP CEO Per Erik Dalen, the company strives to be a driving force for innovative thinking, ac-tively connecting business, the academic community and the public sector in processes which will create sustain-able values. KPs fully integrated and synchronised innovation system will help to create new growth businesses and develop existing businesses. In close cooperation with business, research and development and policy implemen-tation systems, KP has established a model which will give rise to mutual benefits between innovative businesses and cluster programmes. Start-up businesses need the support

of networks, financial muscle, strong innovation environ-ments and cluster programmes if they are to succeed. On their part, business clusters need new ideas, innovation and businesses in order to grow and strengthen their com-petitiveness in the global market. This is a dynamic which KP is there to amplify. We feel that our model ensures a robust and fu-ture-oriented innovation system. All our activities are inter-connected and reinforce each other, while employees make contributions to all projects across professional boundaries and departments. We call this: one idea, many heads. In this way our customers have access to the full expertise and network within our organisation, says Mr Dalen. This network thinking and seamless innovation model is unique in Norway. The aim is to stimulate and develop a basis for future value creation in the region.

KP

DID YOU KNOW?

KP

KP was founded in 1999 and is owned by local authorities and businesses in the region, by Mre og Romsdal County and by SIVA. The company has nine permanent employees and six project ap-pointments. KP has three strategic focus areas: KP Nyskaping (Innovation), KP Regional Utvikling (Regional Development) and KP Havrom (Blue Ocean).

KP NYSKAPING/INNOVATION: First-line service for start-up companies Incubator Early capital and business fund

KP REGIONAL UTVIKLING/REGIONAL DEVELOPMENT: Campus lesund MIT Reap Byregion lesund Norwegian Rooms

KP HAVROM/BLUE OCEAN: Blue Maritime Cluster Global Centre of Expertise Legasea Norwegian Biomarine Resources Ecowinds Ronomar 2

INNOVATIVE INTERPLAY

IN PRACTICE

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MADE IN

NORWAY

SUMMARY FROM OIL ECONOMY TO BIO ECONOMY

SUSTAINABLE PRODUCTION OF NORWEGIAN MARINE INGREDIENTS

100 % UTIALIZATION HIGH VALUE PRODUCTS

KNOWLEDGE BASED INDUSTRY

BASIC NEEDS GLOBALLY: NUTRITION & HEALTH

100%Utilization - high value products

INSPIRE YOUNG TALENTS!

INSPIRE COMPANIES!

INSPIRE INVESTORS!

LEGASEA C/O KP, Borgundvegen 3406009 lesund, NorwayT: +47 70 32 92 [email protected]

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Legasea is a complete business cluster project within ma-rine ingredients. Legasea started out with 23 members in 2013, to sort out the strategic important elements to establish new value chains. The cluster has now reached a point where it is natural to move to the next level. In Mre there are around 500 companies associated with marine biomass, representing a turnover of some 38 billion NOK.

Legasea is part of the governmental program Norwe-gian Innovation Clusters, financed by Innovasion Nor-way, The Reasearch Council of Norway and SIVA. The project is facilitated by KP (AAKP). Mre & Romsdal County is another important partner, including partial financing.

Members of Legasea 2015:(In addition to the industry members shown on page 3):Suppliers: Eurofins and Innolipid.R&D: Mreforsking and Sintef fishery and aquaculture.University: NTNU lesund.

LESUND KUNNSKAPSPARK

sivafor nyskaping og vekstkraft

2015 - review

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