The financial feasibility of sustainable open ocean sea bass farming using submerged net pens: European evidence

Abstract

This paper analyzes the financial feasibility of an open ocean sea bass farm that employs Innovasea technology in the offshore French Mediterranean Sea. Innovasea technology uses a suite of sensors, enhanced artificial intelligence and other advanced offshore technology to reduce labor costs, increase production, and lower environmental sensitivities related to fish medication and pesticides, fish mortality, excess feed losses, parasitic infections, and lack of monitoring. This study was conducted by employing a spatial analysis to identify the most suitable location, taking into consideration bathymetry, significant wave height, current velocity, distance from shore, and vessel traffic density. 80 cost categories were subsequently identified and populated, as were associated depreciation costs. In the ensuing financial analysis, the farm was projected to produce 5220 tons of sea bass annually (live weight equivalent) with an initial capital investment of $39,924,456, an IRR of 19.43%, and a project NPV of $681,583,178 (cash flow NPV of $113,227,788 and a horizon value NPV of $568,355,390). By approving this farm through existing regulatory parameters that facilitate existing mariculture operations, France stands to meet sustainability and production objectives that it has set for itself. This farm can help advance humanity across many domains including aquaculture, world food supply, upward economic mobility, employment, sustainability, the ocean economy, and maritime engineering. These domains interface strongly with United Nations Sustainable Development Goals 1 (No Poverty), 2 (Zero Hunger), 3 (Good Health and Well-Being), 8 (Decent Work and Economic Growth), 12 (Responsible Consumption and Production), and 14 (Life Below Water).