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Culture Based Enhancement of Soft Shell (Mya arenaria) Clam Beds in Western Nova Scotia

Innovative Fishery Products Inc.
AIMAP-2009-M04

Table of contents

Executive Summary

Innovative Fishery Products Inc (IFP) has been a major producer and employer in the shellfish industry in southwestern Nova Scotia since 1997. To grow its business and insure its sustainability, IFP has successfully integrated the harvest of clams from both the public fishery and from 1,682 hectares of managed clam beds. Beginning in 2009, in partnership with Fisheries and Oceans Canada (DFO) and the Nova Scotia Department of Fisheries and Aquaculture, IFP has again broadened its direct investment in the clam fishery by $1.1 million to establish a clam hatchery and nursery. IFP will use this new facility to significantly boost production of soft shell clams from its leases in Saint Mary’s Bay and the Annapolis Basin. Past production from these leases has been limited by inconsistent and unreliable natural seeding; a problem soon to be resolved through planting of hatchery produced seed clams. The new facility is located adjacent to the company’s St. Bernard processing plant in order to recapture the energy and nutrients currently lost in its wastewater. The success of this new venture will be bolstered by rigorous, environmental studies patterned after those which characterized IFP’s management of hard clam production over the past 14 years.
 
The facility is one part of a larger soft shell clam development project by IFP and the federal and provincial departments. The objectives of this broader project also include:

  • Provide IFP owners and staff with technical and financial expertise  necessary to operate a clam hatchery and nursery
  • Develop a detailed strategic plan to integrate the new activities with current clam depuration and processing business at IFP
  • Expand IFP staff to include a shellfish hatchery biologist and a least two technical support persons
  • Conduct a series of studies within the new facility to determine:
  • Optimal hatchery and nursery technologies and operating procedures suited to the environment of south west Nova Scotia
  • Recapture energy and usable shellfish food currently being lost in the wastewater of the company’s St. Bernard plant
  • Conduct a series of field research projects to determine:
  • Information on baseline levels of existing soft shell clam populations on company leases in St. Mary’s Bay and the Annapolis Basin 
  • Optimal lease seeding strategies including size of seed and timing of planting to maximize survivorship on various leases
  • Optimal harvest times and methods to maximize returns from each lease and to the overall business
  • Monitor the various beds and soft shell clam populations to develop comprehensive knowledge of wild and enhanced soft shell clam populations

Introduction / Background

Innovative Fisheries Products Inc (IFP) has managed a 1,682 ha quahog (Mercenaria mercenaria) lease in St. Mary’s Bay, Nova Scotia since 1997. The company created and practices a management strategy based on population modeling to optimize production on a long term basis. This model required a description of life history parameters and data on the quahog population and its commercial exploitation. Using similar strategies for soft shell clams IFP’s goal is to further develop enhancement strategies of managed soft shell clam beds using wild and hatchery reared seed with the following objectives:

  • To produce clam seed using an integrated hatchery facility and to optimize seed growth using integrated nursery techniques;
  • To evaluate managed clam beds in order to identify the optimal areas to conduct enhancement work and clam culture;
  • To enhance clam beds and culture clams using various seeding and predator control strategies.

With the assistance of the federal Industrial Research Assistance Program (IRAP) in May 2010 IFP contracted the services of Brian C Muise and Associates to conduct a preliminary design and feasibility study of the proposed project. That work provided IFP staff with a base level, working knowledge of the technical and financial aspects of the proposed hatchery and nursery. This study placed the cost for the hatchery/nursery facility and related research and development (R&D) projects of approximately $1,110,000.

In order to mitigate business risks associated with this new and novel approach to soft shell clam production, in 2008/09 IFP submitted applications to several national and provincial R&D funding support programs.

Through a competitive and rigorous selection process IFP was successful in receiving support for its new R&D program from two sources:

  • Aquaculture Innovation and Market Assistance Program (AIMAP) managed by DFO, and;
  • Aquaculture Development Fund managed by Nova Scotia Fisheries and Aquaculture

Methodology

This report was prepared for submission to AIMAP and focuses largely upon the nursery component towards which funding was provided. By virtue of its integration within a larger capital construction project much of what follows includes descriptions of items and issues of the larger project having direct impact upon design and construction of the nursery.

Major Items & Tasks

Through their experience with development of a large quahog business the owners of IFP were generally aware that the scale of investment likely to be required to bring their proposed soft shell clam project through to profitable cash flow would represent a significant challenge to their company.  Initial planning defined the major items & issues associated with the project as follows:

  • Business risk assessment and management
  • Define financial and technical risks
  • Identify risk mitigation strategies
  • Confirm available resources

This phase of the project was begun in a preliminary manner during the late months of 2009 leading to a feasibility and preliminary design study during May through July 2010. The results of that work were sufficiently encouraging to prompt IFP to seek resources to support the construction and research components. This work occupied IFP staff through much of 2010.

  • Pilot shellfish hatchery & nursery system
  • Familiarization with technologies
  • Planning and design of facilities and related studies
  • Site selection
  • Construction management
  • Operational Plan & Implementation

Construction of the hatchery and nursery took place through the winter of 2010 / 2011 with IFP owners serving as general contractor issuing contracts to, and supervising the work of thirteen local sub-contractors and suppliers. This work is scheduled for completion in April 2011 (hatchery) and June 2011 (nursery). Both facilities will be made operational through the summer and autumn of 2011.

  • Soft shell clam bed enhancement
  • Population baseline surveys  & habitat mapping
  • Population enhancement
  • Population monitoring

This is another area of work with which IFP owners and staff were very familiar through their years of similar work with quahog populations. Conduct of field studies to measure baseline population levels and to map existing soft shell clam populations on company leases establish base values against which the success of enhancement activities can be measured. Field studies will begin in April 2011 concurrent with the hatchery and nursery operations. Monitoring will be initiated with the planting of hatchery produced clam seed in September and October of this year.

Analysis and Discussion of Results on Deliverables

The full soft shell clam project is comprised of three main initiatives for the company:

  • Strategic Planning
  • Pilot shellfish hatchery & nursery system
  • Soft shell clam bed enhancement

This section will provide full details regarding the progress and status of the various components of the project within these categories.

Strategic Planning: Business risk assessment & mitigation

The owners of IFP possess a high level of expertise in management, harvesting, processing and marketing various species of near-shore clams. Their success with extensive management of quahogs convinced them that a similar business opportunity lay in improving their understanding and management of soft shell clams on the company’s lease holdings. In 2009, the company undertook two initiatives designed to better define and mitigate the business risks associated with a new soft shell clam production strategy:

1. Feasibility study with site selection & facility conceptual design

In April 2010 IFP contracted with Brian C. Muise and Associates Inc to conduct a feasibility study of the proposed project. The deliverables of this study included:

  • Provide the owners of IFP with a fundamental, working knowledge of the business, technical and management aspects of shellfish hatchery & nursery facilities.
  • Selection of optimal infrastructure and operating protocols, basic technologies & methods
  • Identify potential alternate sites for locating a clam hatchery & nursery
  • Determine the technical and financial feasibility of establishing and operating a soft shell clam hatchery on current company property or at a new site including;
  • Conceptual Designs
  • Financial Model

The feasibility study and financial modeling exercises offered the following conclusions and recommendations to IFP:

  • Return on investment over the 8 to 10 year term appears to be very promising for IFP.
  • Financing operations of the proposed new business through the initial 5 years to achieve revenues from primary sales will present the greatest challenge for IFP.
  • IFP must pursue all R&D support programs through the initial years in order to mitigate cash outflows and to infill data gaps on the biological performance of clams on their farms.
  • The proposed hatchery offers the potential to become a key infrastructure component to commercial expansion of other shellfish species such as native and European oysters, sea scallops, quahogs and bay scallops. 
  • The initial level of capital investment and operational risks associated with shellfish hatcheries present a significant barrier to entry. This limit to competition should enable IFP to take full advantage of the useful life of the project’s capital assets.
2. R&D funding assistance

Through the preliminary planning process IFP identified within their proposed soft shell clam strategy a number of information gaps for which answers could not be found within published literature or from research experts within the region. These critical information gaps were identified in applications submitted to various provincial and national R&D funding agencies through 2009.  In 2010, approvals for cost sharing of R&D risks were received from one federal and one provincial agency. 

The Aquaculture Innovation and Market Assistance Program (AIMAP) managed by DFO recognized the innovative aspects within the proposed work plan associated with energy recapture from wastewater effluents from IFP’s St. Bernard depuration and processing facility. Assistance from this program focuses primarily upon the utilization of this recaptured energy, in the forms of large volumes of seawater with an approximate 4 meter elevation / head above sea level and its enhanced micro-algae component, for controlled production of juvenile seed clams. This facility will grow post-settlement clams of 1.5 mm shell length to approximately 10 mm, a size at which their survival upon out-planting to intertidal flats will be significantly enhanced.

Under the “Green” component of the AIMAP program, DFO contributed $250,000 (AIMAP-2009-M04) towards IFP’s demonstrating the use of recaptured industrial waste energy for production of juvenile soft shell clams. It is this component of the overall project which is the major subject of this final report.

The Aquaculture Development Fund managed by Nova Scotia Fisheries and Aquaculture recognized the innovative significance of IFP’s proposed new soft shell clam strategy and it relevance to the province’s shellfish aquaculture sector. In spring 2010 the department approved a $250,000 contribution towards the capital cost of the new facilities. 

Conclusions Strategic Planning & Business Risk Assessment 

  • The initial feasibility study clarified many of the financial and technical risks of the new initiative and identified potential mitigation options
  • Sufficient biological and technological expertise is available within the region to provide critical support to the new initiative
  • Cost sharing of the R&D components of the program by federal and provincial agencies significantly reduces the direct financial risks to IFP 
  • The potential financial returns to IFP from its proposed soft shell clam initiative are sufficient to justify the investment risk
  • With risks more clearly defined and confirmation of two significant R&D contributions, the decision to proceed with the remaining project components was taken by IFP owners in September 2010.
  • Pilot hatchery & nursery
  • Associated field support studies

Pilot shellfish hatchery & nursery system

In addition to a financial model and risk analysis the feasibility study provided IFP owners with:

  • A working knowledge of shellfish hatchery and nursery technologies
  • Confirmation regarding the potential of the St. Bernard site for location of its proposed hatchery & nursery
  • A preliminary facility design
  • Preliminary implementation and operating plans

Based upon the information provided, IFP proceeded with planning and construction of the hatchery and nursery adjacent to its Saint Bernard depuration and processing plants.

Facility construction

The owners of IFP, being intimately familiar with the St. Bernard facility and experienced in the marine construction trade chose to serve as their own general contractors. In September 2010 construction of the new facility began with the issuance of contracts &/or orders to various service and equipment suppliers. Where possible, sub-contractors were chosen from the local area with contracts being issues on the basis of price, quality and availability.

Site clearing and preparation for construction of the main building to house the hatchery and nursery began in September and progressed through the winter months. To date, the main hatchery and nursery buildings and the associated plumbing main lines have been completed.

Equipment selection, purchase & installation took place concurrent with building construction. All general, physical plant equipment items were chosen by IFP staff based upon their own collective years of experience in operating marine systems and its compatibility with existing physical plant systems at the St. Bernard processing facility. Selection of specialized equipment for the hatchery and nursery advice were sought from experienced consultants and hatchery operators within the region.

Soft shell clam bed enhancement: Field support studies

  • Population baseline surveys  & habitat mapping
  • Population enhancement
  • Population monitoring

Field studies were postponed until construction of the hatchery and nursery was nearing completion. This work is now projected to begin with the employment of new staff in April 2011.

Comments on Construction and Field Studies

  • Construction phase of the project has missed the projected completion and initial operating dates.
  • The main causes of project delays include:
  • Complex and over-prescribed funding programs leading to delays in funding approval
  • Delayed approvals pushed construction into winter months
  • A particularly harsh winter hampered construction
  • Several issues related to contractor performance &/or quality of equipment installed
  • Despite these issues IFP anticipates operational testing of the hatchery and nursery facilities beginning in May 2011.
  • To date, pump and plumbing components of the hatchery and nursery systems have, where appropriate, been given initial, quick tests only. More lengthy, pre-operational testing will take place when all components are in place.
  • When fully operational, the hatchery & nursery will have an installed capacity of 30 million soft shell clam seed annually. IFP anticipates a ramping up to this level over the next few years.

Conclusion

DFO & Industry Collaboration

  • This project builds upon an established relationship between DFO Science branch and IFP which led to the commercialization of managed quahog production. The current project extends that relationship over time and into new areas of research.
  • IFP must continue to pursue all R&D support programs through the initial years in order to mitigate cash outflows and to infill data gaps on the biological performance of clams on their farms.

Technology Transfer & Commercialization

  • The strategic planning process, which included the initial feasibility study, has provided IFP owners with a solid working knowledge of the technical and financial aspects of hatchery & nursery operations for soft shell clams.
  • The construction of a hatchery and nursery at IFP’s St. Bernard site represents a significant expansion of the company’s technical and process control capabilities.
  • When fully operational, IFP’s hatchery & nursery will have an installed capacity of 30 million soft shell clam seed annually. IFP anticipates a ramping up to that level over the next few years.
  • The hiring of a biologist and support technicians will add further to IFP’s technical knowledge and capabilities.
  • IFP owners are comfortable that the initial level of capital investment and operational risks associated with shellfish hatcheries present a significant barrier to entry. This limit to competition should enable IFP to take full advantage of the useful life of the project’s capital assets.

Species Diversification

  • As a direct result of this new capacity, IFP fully anticipates a significant expansion of its soft shell clam harvesting and processing
  • Increased quantities of soft shell clams will further expand IFP’s export sales to the US
  • The proposed hatchery offers the potential to become a key infrastructure component to commercial expansion of other shellfish species such as native and European oysters, sea scallops, quahogs and bay scallops. 

Green Technology

  • Integration with the company’s depuration plant will result in the recapture of waste energy and food in plant outflows
  • Minimal costs to access large volumes of wastewater
  • Primary food source for nursery will be the food component of the wastewater

Environmental Performance

  • The energy recapture aspects of this project will further enhance IFP’s optimization of environmental performance

Next Steps

Employment

In April 2011, IFP will be expanding its staff to include a senior biologist and two support technicians whose responsibilities will include bring the new facility to operational testing through summer 2011. In addition, concurrent with facility testing, these new staff will be conducting field studies related to establishing baseline values for soft shell clam populations on company leases.

Operational testing

Complete testing of the hatchery and nursery will take place from May through September 2011, which will include:

  • Thorough testing of all mechanical and physical plant systems.
  • Ramping up spawning, larval culture, spat settlement and seed culture throughout the summer months.
  • Integration of the hatchery and nursery system within the depuration facility, particularly as indicated by routine water testing utilizing various multi-parameter probes for temperature, salinity, dissolved oxygen, pH, nitrates, food concentrations and others
  • Nursery production of seed to supply test stock for bed enhancement trials

Bed Enhancement

These studies will take place in three phases as detailed in the contribution agreement:

  • Initial population surveys to establish standing population structure
  • Mapping of substrate areas (May through August)
  • Enhancement with cultured seed from the nursery (September & October)
  • Predator monitoring and control
  • Population monitoring for:
  • Survivorship and growth
  • Overall gain in clam bed productivity 

Additional R&D needs

As was the case with building its quahog business, IFP anticipates that their new soft shell calm development project will, over time, identify key information gaps related to process control and production refinement. An ongoing relationship with R&D funding agencies to fill information gaps is anticipated.

Planned Communications

All public communication related to this project will be coordinated with DFO.

Date Modified: 2012-07-31

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