Atlantic Sapphire salmon farm seeks $250 million public loan
A Norwegian fish-farming complex that plans to produce at build-out 1 billion servings of salmon a year near Homestead at what would be the world’s largest aquaculture facility is to get a $250 million loan boost via industrial revenue bonds up for approval by county commissioners this week.
The commission already approved the loan package in April 2023, but under the federal tax code that OK to issue bonds was only good for a year and the county’s industrial development authority hasn’t issued them yet, so new commission approval is required.
Atlantic Sapphire USA is in expansion mode at its 22275 SW 272nd St. operation, where it now employs 180 people and projects hiring about 100 more with an annual $15 million-plus payroll as it completes its scheduled expansion.
The parent company, which is listed on the Oslo, Norway, Euronext Oslo Stock Exchange, plans to use proceeds of the facility bonds to improve wastewater treatment and disposal for the land-based, full growth cycle salmon farming on about 20 acres.
Neither the Miami-Dade County Industrial Development Authority nor the county would have any liability for repayment of the bonds. Bond underwriter Wells Fargo expects the bonds to be issued during 2024.
The company now has a capacity of 9,500 tons of salmon a year and says the next phase of its expansion will bring capacity to 25,000 tons.
Construction of that phase has begun, and the company has design and construction contracts signed. The first growing systems are expected to be completed early next year, with full capacity of 25,000 tons flowing in 2027.
Subject to future approvals, Atlantic Sapphire plans to gradually expand production at its Homestead Bluehouse to 220,000 tons of annual capacity.
In addition to the $250 million in bonds, the company plans to provide $100 million from equity to complete the current phase of development.
Atlantic Sapphire originally raised its fish in Denmark but moved all operations to Homestead. Its largest single customer as of last year was Publix, which sold Atlantic Sapphire salmon in all its 818 Florida supermarkets.
Bluehouse fish farming differs from traditional land-based methods in that the fish are raised in one location, swimming through a series of tanks known as bluehouses that simulate the salmon’s growth cycle in nature. Atlantic Sapphire’s first bluehouses were built and refined in a small village in Denmark, and European investors still constitute a majority of its shareholders.
The company says its Homestead bluehouse contains all facilities needed for salmon’s growth, from egg hatchery to grow-out-tanks to harvest processing. The company says it completed its first commercial harvesting from the Homestead site in September 2020.
The bond issue is to be spent on a wastewater treatment plant and related construction, with the $100 million equity investment to include $60 million in machinery and equipment.
Jim Tatum
May 8, 2024 at 8:15 am
Please deny all permits for Atlantic Sapphire. A few jobs are not worth the risk to our environment and health. If you will do a basic research on aquaculture you will soon see the negative aspects of this industry.
Chemical Inputs. Excessive use of chemicals, such as antibiotics, anti-foulants and pesticides, or the use of banned chemicals can have unintended consequences for marine organisms and human health.
Disease and Parasites. …
Escapes. …
Nutrient Pollution and Carrying Capacity. …
Jim Tatum, 112 W Minnehaha St. Tampa Fl 33604
Peter. George
May 8, 2024 at 5:51 pm
The advantage of genuine RAS salmon farms is that the incidence of disease and antibiotic use is virtually – if not entirely – eliminated in facilities around the world.
Escapes are non-existent.
Dealing with waste water and solids is a potential issue but strict regulation – including serious penalties for regulatory breaches – reduces the potential for spillage.
Some RAS facilities do not emit any waste water at all and solids go to fertiliser.
The biggest issues remain the feed using soy, fish meal and sometime krill. Insect farms can alleviate the feed issue.
This is written by no fan of fish farms – Neighbours of Fish Farming in Tasmania, of which I am president – is fighting the Atlantic salmon multinationals destroying our waterways and marine life – including driving a 60-million-year-old survivor of the dinosaurs, the Maugean Skate, tenth edge of extinction in remote Macquarie Harbour.
Land-based, RAS (Recirculated Aquaculture Systems) are a leap forward in industrial farming – but it’s still industrial farming, of course.
Peter George
noff.au
Ralph
May 8, 2024 at 7:45 pm
My stock in Atlantic Saphire has cratered and worth virtually nothing now. So I smile at expansion plans.
Sal
May 9, 2024 at 9:59 am
Some months ago (maybe a year) I was at Publix in Brickell Miami and seen a very few pieces of this salmon of this specific producer in a little corner, just put there as it was the latest quality salmon on earth. Dunno what to think really!
Orin
May 11, 2024 at 7:00 am
Atlantic Sapphire didn’t anticipated the energy cost it takes to cool water during the South Florida summers. They lose money on every fish they produce. They have burned through hundreds of millions of investor dollars. The CEO and CFO have both bolted. I don’t know who is underwriting these bonds, but they will never be paid back.
Jose
May 11, 2024 at 5:54 pm
The frozen wild-caught Sockeye Salmon at Costco is cheaper and taste better…
Tom
May 14, 2024 at 8:49 am
This loan will never be paid back. The infrastructure of the facility is collapsing the walls are deteriorating because of excess acid spills. The dirt under fish tanks are basically floating & on the verge of collapsing because of the run off. Way too many things going on that place that nobody is talking about. Fish are being rush through maturity which then causes mutations & the salmon tasting horrible. But once again they get another loan. They’re already debt. But yet all upper management including HR gives themselves bonuses every quarter.
Danc
May 14, 2024 at 1:39 pm
Have you looked at their balance sheet? They don’t actually have that much debt. Pretty low current ratio for a growth company. On the facility side of things I hope that you are wrong but I have not seen their facilities. ^^