PRODUCT CATALOGUE

HOW TO EXPAND THE FISH FARMING INDUSTRY

Versjon 1, 12-2-2016

COPYRIGHT AND DISCLAIMER

COPYRIHTCopyright of all published material including photographs, drawings and images in this document remains vested in Byggutengrenser, HeidelbergCement, Dr.techn. Olav Olsen, FishfarmingInnovation and the third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor used in any manner withoutexpress prior permission and applicable acknowledgements. No trademark, copyright or other notice shall be altered or removed from any production.

DISCLAIMERThis presentation includes and is based, inter alia, on information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and thispresentation are based on current expectations, estimates and projections as well as engineering judgement, best practice experience and evaluation of global economic conditions, that aresubject to uncertainties.

Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industriesthat may be relevant for the product described in this presentation.

Although Byggutengrenser, Dr.techn. Olav Olsen, HeidelbergCement and Fishfarming Innovation believe that its expectations and the presentation are based upon reasonable assumptions, itcan give no assurance that those expectations will be achieved or that actual results will be set out in the presentation. Byggutengrenser, Dr.techn. Olav Olsen, HeidelbergCement andFishfarming Innovation are making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and will not have any liability toyou or any other persons resulting from your use.

ILLUSTRATIONSAll illustrations in this pamphlet are made by the group, except the large shell structure shown in the middle of page 8. That structure, Centro Ovale Concrete Shell in Chiasso, Switzerland, is designed by Aurelio Muttoni. Some of the illustrations, as indicated in the text, are made in a project paid by Marine Harvest.

Contact information:

Tor Ole Olsen Per Helge Pedersen Jan Eldegard Jan Eldegard

too@olavolsen.no php@phpinnovation.no jan@byggutengrenser.no jan.eldegard@heidelbergcement.com

Phone: 0047 9510 1473 Phone: 0047 9060 1543 Phone: 0047 9117 9109 Phone: 0047 9117 9109

Dr.techn.Olav Olsen Fishfarming Innovation Byggutengrenser HeidelbergCement

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SUSTAINABLE FUTURE FISH FARMING

The world is demanding more healthy and sustainablefood. Consumers around the world do not get there needsmet, particularly the amount of fish and omega nutrients.Norway is considered the leading country in the worldwithin the fish farming industry, with salmon being thesecond largest national export product. The NorwegianGovernment wish to produce five times the amount offarmed fish within 2050. To achieve this goal, newtechnology needs to be incorporated into the industry.

However, the industry is looking at immenseenvironmental challenges that restrict expansion of fishfarming used with the current technology. One of the twomain environmental challenges is the increasing

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population of sea lice occupying the waters within the farming populations, as well as the increasing growth of licein the surrounding waters infiltration the wild salmon and trout. The second main challenge is the geneticinfluence escaping salmon has on the wild sea populations of salmon and trout. With these challenges, theindustry is now in need of a leap into new technology to meet the Governments goals of increasing the export offarmed salmon.

Is it possible that the building and construction industry can contribute to the solution of solving the challengesthe fish farming industry is facing? It is our belief that by combining the best from these two industries, theoutcome will contribute to the solution.

COMBINING KNOWLEDGE FOR A GREATER FISH FARMING

CHALLENGES IN THE INDUSTRY

SEA LICE AND SICKNESS

Parasites such as sea lice are an increasing threat to the reputation of the Norwegian salmon industry. The growth in the lice population is closelyconnected to the increasing amount of farmed fish. The lice, Lepeophtheirus salmonis, has ten life cycle stages. The ability to undergo a cycle change isdependent of fish mucous. When the sea lice encounter a salmon they adhere themselves to the skin, fins and gills of the fish. The salmon farms are anideal inhabitant for the sea lice, and during the adherent period, they feed off the skin, blood and mucous, giving the fish open wounds. The lice alsoworks as a vector for diseases existing in the fish farms, that then are transmitted into the wild salmon colonies.

The lice populations along the coastline are growing and therefore the problems connected to the parasite expand. Now there is a documented trend ofincreasing lice on both the farmed and wild fish. The allowed amount of lice per fish is strictly regulated by the Norwegian Government. Therefore, theincreasing lice contamination in the farms lead to slaughtering and financial loss of all the infected salmon, as well as an environmental risk for the wildsalmon and trout population.

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ESCAPING SALMON AND THE EFFECT ON THE SURROUNDING WILD POPULATIONSEvery year, millions of farmed salmon escape from the nets. This is due to extreme weather conditions or otherunfortunate events. The memo posts consists of two layered nets that can develop wholes without exposing it toexcessive force. When escape incidents occur, there is a large environmental impact on the surrounding waters. Escapedfarmed salmon increase the competition on the food resources, increase the sea lice population and the matingcompetition. Another alarming aspect of escaping salmon is how the fish contaminate the wild species with diseases thatoriginate from the farming populations.

POLLUTION FROM THE PLANTATIONS, BIOFUELSludge, chemicals and excrements from the fish in the farming nets pollute the surroundings waters. The waste productoriginate from fish feces, fish-feed and chemicals used for treatments against sea lice and sickness. The installationsalong the coast mainly generate fat and volatile suspended fish stool that lead to eutrophication of the sea soilunderneath the fishnets. Sludge contains large amounts of nutrients that may be recycled and utilized as biofuel and asphosphoric source for production of fish-feed. As an example sludge can be used as energy source for production ofcement hence reducing the use of fossil energy.

… AND THE SOLUTION

DEMAND OF EXPANDING. HOW TO MEET THE GOAL.

Marine rigid constructions have the ability to expand the quantity of farmed fish and reduce the amount of negative environmental influence. TheNorwegian Government has issued their view on the necessary expansion of the fish farming industry in Norway, in Report No. 16 to the Storting.Worldwide fish farming has the strongest growth in food production and Norway’s goal is to be leading this trend. In the report, it is stated that thenational objective is to produce 5.5 million tonnes of farmed salmon within 2050. This is five times the amount produced in 2014. To be able to reachthis goal a leap into a new technological field is necessary.

CLOSED CAGE FARMING

The main objective of closed cage fish farms is that they have the ability to prohibit the sea lice from infecting farmed- and wild salmon. This developedstructure also enables the opportunity of having regulated water temperatures and oxygen levels. By creating a closed environment for the farmed fish,it is possible to control and develop effective environmental factors in the fish farms. The waste products from sludge, food and medicine will becontrolled and accumulated through filters, and then recycled as bioenergy and source for proteins from algeas for production of fish-feed. There is aclear health benefit for the fish with the closed cage. Experiments show that there is a reduction from 20% fat to 10%, if a closed cage with the rightenvironment standards is used. The material of the cage varies from rigid concrete, composite, steel to thin lined clothing covered structures. A rigidconcrete structure has also the ability to reduce the environmental risk off escaping farmed fish due to a higher safety level.

THE FLOATING FISH FARMING CITY

An expansion of the rigid concrete structure is to develop a floating fish farming city. The concept is to establish a floating structure that enfolds therequired components to undergo controlled and sustainable fish farming. The personnel on the farm are stationed on a stable and rigid structure thatenables an increase in Health, Environment and Safety at work. Recycled sludge and other waste products produce biofuel and phosphorus foodnutrients. The concrete based frame has a durability to last for 100 years and can withstand immense forces relative to other thin materials. This opensup for the possibility of placing fish farms further from the coastline where the weather is windier and where the waves are greater.

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“The main objective with closed cage fish farms is that

they have the ability to prohibit the sea lice from

infecting farmed - and wild -

salmon.

CONCRETE STRUCTURES – EFFICIENCY THROUGH DECADES

BUILDING THE FUTURE WITH SHELL TECHNOLOGY

Reinforced posttensioned concrete shell structures have the opportunity to establish a whole new era in the fish farming industry. Developing a rigidconcrete frame around the fish farm will contribute to an increase in stability in the walls that will prevent escaping fish during extreme weatherconditions. The structure can be designed as an open or a closed frame. Combining an open concrete structure with the traditional fish farming nets willopen for new opportunities that will benefit the industry. This concrete structure establishes, as mentioned in the previous section, a safer environmentfor the industrial workers. By installing a water pump in the closed concrete structure, water can be pumped from 25- 30 meters below sea level, a levelwhere the sea lice population is close to non-existing, therefore the lice percentage in the farms will decrease immensely. This design thinking is takenfrom Norwegian experience from the platforms in the oil and gas industry.

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THE CONCEPT OF CONCRETE SHELL DESIGN

Concrete shell technology revolutionized the offshore projects.The competence gained from the offshore concrete platformsfor the oil and gas industry can be useful for otherapplications. The ability to reinforce a thin plated structureand still maintain the immense strength necessary for theweather conditions that these platforms are exposed todemonstrates the capacity of the reinforced concreteplatforms.

The shell structure requires minimal maintenance and repaircompared to net-based fish farming. Concrete is particularlydurable and it is built to last more than 100 years. Whenconsidering the fish farming city, the functions and serviceunits may change throughout the years, without the need todevelop a new concrete shell. Also recycling the concrete atthe end of the lifetime provides a sustainable circle of life.

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EXTENSIVE USE DEMONSTRATES THE STRENGTH OF CONCRETE

THE CONCEPT OF CONCRETE SHELL DESIGN

ILLUSTATION OF THE STRENGTH

The evolution of the oil and gas platforms is to design a shell structure that has optimal stiffness and dynamiccharacteristics. With the environmental forces from the extreme weather conditions, the marine structures need to bedesigned with the ability to withhold immense forces, how is this possible? Inspiration came from the strength of a simpleeggshell. How can the thin eggshell be able to resist the large scaled forces it can withhold?

The hydrostatic and hydrodynamic disciplines need to be included in the design process. In addition, the marine structure istypically a shell structure that needs to be able to provide buoyancy. Shell structures are efficient for distributed loads suchas hydrostatic pressure, and therefore light, but they require special skills to design.

The oil platforms are exposed to waves from all directions, and ballasting may have hundreds of different phases. Inaddition, the general shell element has ten stress resultants. This calls for efficient programs that handle the logistic as wellas performs sectional design and code checking. Recent development is to include non-linear response. The results of suchan approach is often very different from the results of the linear analysis. This program, ShellDesign, is therefore a tool forsafer and more economical design that also enables the structures to be built with a thinner shell than ever seen before.

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VISUALIZED CONCEPTS FOR FISH FARMING9

THE JELLY FISH TANK CONTAINED POSTS MOLT PRODUCTION

THE OVAL COMPARTMENTS TANK FISHFARMING INNOVATION

CONTAINED POST SMOLT PRODUCTION

CONCEPT

The first prototype design that resembles a sea-based closed system for fish farming. The structure was designed for Marine Harvest, for 200 000 kg offish and the geographic localization was right outside the smolt production facility in Masfjorden, Norway. The prototype illustrates a promising future forthe closed concrete fish farming.

After considering different materials and geometry, the concept phase landed on a circular concrete structure built up of a lower dome and a circularcaisson. In operation the water volume inside the structure is 4000 m3, accommodating the 200 000 kg of fish.

FUNCTIONS AND GEOMETRY

The caisson consists of an outer and inner wall, radial walls, and bottom and top slabs. The radial walls divide the caisson into 24 symmetrical cellswhere the cells are connected to each other through ballast compartments. This cell structure ensures buoyancy and hydrostatic stability in all designphases, the structure was even designed to lift the fish tank out of water.

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Key figures Value

Outer diameter 34.5 [m]

Wall thickness 250/150 [mm]

Volume of water 4000 [m3]

Volume of concrete 970 [m3]

Operational displacement 7350 [t]

CONTAINED POST SMOLT PRODUCTION

WHY THE DESIGN IS PREFERABLE

The water level inside the tank corresponds to the water level outside of the tank. The structure has a draft of 9.95 m with 2.4 m freeboard. The designenables the closed fish tank to be emptied for water between each production cycle, therefore cleaning and disinfection is a simple procedure.

Floating capacity, in case of accidents, is maintained through the cell structure described above. In case of accidents that damage the outer wall due toe.g. ship collisions, the structure will remain floating and stable as long as damage is limited to two cell compartments. In case of additional weight dueto e.g. dead fish, this can be compensated for by reducing the amount of ballast water.

A roof is designed to cover the water surface of the tank, this prohibits sun illumination and contamination from birds. The arrangement that was usedon the prototype was a roof made of steel trusses covering the tank.

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FISH FARMING INNOVATION

CONCEPT

How will a closed fish farm affect the fish and their environmental health compared to the traditional net design? Thisconcept was based on building a prototype for experimental use, and to get documented results on the farmed fisheshealth. The construction is supposed to be placed in Smøla, which is located in Møre og Romsdal. Throughout the testingphase, the technical aspects of the experiment will also be evaluated.

FUNCTIONS AND GEOMETRY

The structural geometry of the tank illustrates how the knowledge from other marine structures can be imbedded into fishfarming. By using shell design from the oil and gas industry, the prototype is constructed with a shell structure with only100 mm thick walls. Considering the span of the cylinder being 16 m, and the environmental forces that marineconstructions undergo, this geometry is remarkable.

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Key figures Value

Outer diameter 16.0 [m]

Wall thickness 100 [mm]

Volume of water 1000 [m3]

Volume of concrete 100 [m3]

FISHFARMING INNOVATION, BACKGROUND

> The company FishfarmingInnovation (FFI) is owned by PHP Innovation (60 %) and the contractorBetonmast (40 %). The background for the establishment is the wish to develop a new generationmethod of fishfarming. A system is developed for closed farming in concrete shell structures. Emphasis is on making the fishfarming the most environmentally friendly amongst the types offarming.

> By employing modern concretes and modern production methods the fishfarming structure will be cost effective. The structure may be designed for harsh environments.

> In addition to the tank structure where the fish will live and develop, a floating production facilitywill be developed for supporting one or several tank structures. This will greatly and positivelyinfluence the whole production system, including health, safety and environment.

> A cluster of specialists is established within the various disciplines, including concrete structures in the marine environment, and the research facilities at Sintef and NTNU, in Norway. By theknowledge of new materials advanced recepies for the concrete in the new fishfarming structuresare developed.

> The tanks will be equiped with the most modern equipment to endure good living and growingconditions for the fish. The health of the fish is given highest priority in developing the new FFI-system for aquaculture.

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FISH FARMING INNOVATIONWHY THE DESIGN IS PREFERABLE

The buoyancy is maintained with the structural beams being filledwith expanded polystyrene (EPS). The tank is designed for thehydrostatic pressures that occur through variable phases. Thisincludes different water levels inside the tank and alteringcombinations of wave forces.

The prototype is to be built during 2016. By building a prototypesuch as this one, for this purpose, the results from theexperiments will indicate if it is desirable to continue developingthis type of closed concrete fish tanks.

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CONCEPTS

THE JELLY FISH TANK15

THE OVAL COMPARTMENTS TANK

ECONOMY OF CLOSED FISH FARMS16

Basis for comparing profitability of closed concrete tanks with open nets

Not surprisingly, the capital cost of a closed concrete tank is higher compared to a net-cage. However, the cost of the licenceof a closed system should be significantly less than for an open system, however this is a political issue. The durability of a closed concrete tank is significantly better than a net, the lifetime of the closed tank will be many times that of a net.

Including the different depreciations, the cost of producing 1 kg of salmon is not so different for the two systems, the cost ofde-licing counteracts the depreciation.

The fish density of closed systems may be 2-3 times compared to open systems.

It’s also estimated that the quality and selling price of the salmon may be higher when grown in a closed system.

The cost difference of having to move nets to new locations, shut down time between production-cycles and otherenvironmental effects will influence the total picture. The risk of escaping salmon has also a cost for open systems.

Please take contact for a concrete discussion on costs and savings.

PLEASE CONTACT US FOR MORE INFORMATION