NATI Biotechnology Luncheon

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ATLANTIC CANADA FISHERY BY-PRODUCTS RESEARCH
CENTRE COMMERCIAL DEVELOPMENT OF MARINE
BIOACTIVE COMPOUNDS AND EXTRACTION PROCESSES FROM
FISHERY AND AQUACULTURE BY-PRODUCTS
NATI Biotechnology Luncheon  January 28th
2004 Nigel V. Allen Director, C-ASD
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Global By-product Utilization

• Fish meals (different grades)
• Marine Oils
• Fish Sauces and Pastes
• Biochemicals
• - chitin and derivatives
• - enzymes
• - glucosamine
• - pigments
• - chemo-attractants
• - isinglass
• Other e.g. Fish leather, mother of pearl

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Current Research in By-product Derivatives

• Nutraceutical applications
• Pharmaceutical applications
• Cosmetics
• Industrial chemicals
• Human nutrition
• Fish and animal nutrition
• Plant nutrition
• Food Science

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History of By-product Utilization in Newfoundland
and Labrador

• Traditional Cod Liver Oil, Salted sounds
• Capelin fertilizer
• 1960s- present Fish Meal (low grade)
• Fish (herring) Oil
• Fish Sauce
• Present Seal Oil
• Dried Crustacean Shell
• Fish Silage
• Antifreeze Protein

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Newfoundland Initiated Feasibility Studies

• Industrial Fisheries
• LT (high grade) fishmeal
• Crustacean Shell drying (primary)
• Chitin and Chitosan Production (secondary)
• Fish Silage (primary)
• Fish Silage Concentrate (secondary)
• Flavourants
• Marine mammal oils

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Newfoundland LabradorFish Waste 2002
Tonnes
Total Available Waste - 94,835 Tonnes
Source Government of Newfoundland and Labrador.
Department of Fisheries and Aquaculture
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Constraints to Commercial Development
Atlantic Canada's Fish Processing Industry
discards gt 350,000 MT/annum of "wastes"

• High Risk of ROI
• Ability of individual companies to support
  required RD
• Lack of facilities
• Logistics of materials collection
• Logistics of quality preservation
• Lack of tech transfer mechanisms

• Awareness of markets and opportunities for
  products
• Awareness of high value products and
  extraction technologies
• Weak communications between researchers and
  industry

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Solutions ?

• Silage
• Dried Shell
• Chitin, Chitosan
• Fish and Animal Feed
• Compost
• Fertilizer
• Others

• Dehydration
• Stabilization/Shipping
• Prices
• Market Development
• Processing Technology

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Technical Challenges

• Development of Cost Effective Silage De-Hydration
  Techniques
• Chitin/Chitosan Extraction using less chemicals
• Water removal from crab and shrimp shell
• Stabilization and compaction of crab and shrimp
  shell
• Filtration of plant process water through peat or
  other materials
• New Compost Techniques
• Liquid Fish Fertilizer
• Other Enzymatic Processing

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Fishery By-product Research Facility principal
concepts

• Intent
• Dedicated applied industrial research centre
  directed toward commercializing by-product
  utilization
• How ?
• Collaborative, interdisciplinary research
  teams. R Fundamental- Applied - Industrial -
  Pilot Scale D
• Why ?
• To improve economic returns to industry
• Socio economic benefits to rural areas
• Address environmental issues.
• Funding 5.385 million
• Duration 3 years

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Project Costs and Funding Sources

• Project Costs
• Wages Salaries 1,337,566
• Materials 195,000
• Infrastructure 2,317,500
• Operating 295,986
• Sub-contracting 240,000
• Travel 57,000
• Patents 80,000
• O/H 60,000
• Other 49,500
• Space rental 753,000
• Total 5,385,552

• Funding Sources
• Cash In Kind
• Provincial Govts 41,000 485,000
• Partner Institutes 71,000 1,236,577
• Industry 225,000 321,250
• IRAP/CCFI 375,000
• NSERC 75,000
• Supplier Discounts 214,700
• CFI 890,800
• CEDA 450,000
• BDP 1,000,225
• Total 3,128,025 2,257,527
• 5,385,552
• Denotes contractual revenues

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Atlantic Fishery By-Products Research Centre

• Approved Funding
• ACOA BDP 1 million
• ACOA CEDA 0.454 million
• CFI 0.891 million
• Total hard funding 2.345 million
• In-kind and revenues 3.041 million
• Total Budget 5.386 million
• Duration August 2003 March 2007

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Budget Allocations

• Buildings and structures 320,000
• Machinery/equipment 1,997,500
• Salaries/wages 1,337,556
• Materials and supplies 195,000
• Consultants 240,000
• Travel 57,000
• Rent 753,000
• Other operating 295,986
• Innovation costs 80,000
• Other 109,500
• TOTAL 5,386,000

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The Real s

• Hard costs
• Equipment 1337000
• Building 260000
• Materials 195000
• Sub contracts 240000
• Travel 57000
• Publishing/shipping 49500
• Salaries 993724 TOTAL 3132224

• Hard financing
• CFI 890800
• CEDA 454200
• BDP 1000000
• NSRIT 82000
• TOTAL 2427000

Shortfall 705,224
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Dedicated Fundamental, Applied Industrial
Research Centre

• Processing Equipment
• Grinders,choppers, extruders, reaction vessels,
  continuous centrifuge, flash evaporators, RO
  unit, spray drier
• Research equipment
• Fast Performance Liquid Chromotography (FPLC)
• Liquid Chromotography Mass Spec/Mass spec
  (LC-MS/MS)
• Gas Chromotography/Mass Spectrophotometry (GC/MS)
• Molecular distillation/deodorizer unit
• Supercritical extraction unit
• Bioreactor
• Particle size analyzer
• Dual channel analyzer
• 16 node Beowulf system (computer simulation of
  bioactive molecule inter-phase interactions)

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Dedicated Fundamental, Applied Industrial
Research Centre

• Infrastructure
• Pilot Plant 320 m2 (190 m2 expansion)
• Research laboratories _at_
• Memorial University
• Dalhousie University
• St. Francis Xavier University
• McGill University
• Industrial Sites
• Commercial partners across Atlantic Canada

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Project Team Organization
Industry Advisory Group
Project Manager (NVA)
Project Coordinator
Project Accountant
Principal Researchers
Core RD Group
Industry
Grad Students RAs
Sub contracts C-ASD others
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RD objectives

• Identify novel biomolecules and their potential
  applications
• Develop commercially efficient extraction and
  concentration processes
• Investigate new or more efficient industrial
  processes for by-product processing
• Identify potential markets and market demands
• Develop environmental friendly waste disposal
  technologies
• Bring new products, processes and/or technologies
  to commercial realization

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Collaborative, interdisciplinary research teams.

• Industry advisory board
• C-ASD
• Industrial technology
• Process engineering
• Project Management
• Principal Investigators
• Dr. Shahidi (MUN) marine lipids, peptides
  chitin/chitosan derivatives
• Dr. Gill (Dalhousie) cationic antimicrobial
  peptides, proteins
• Dr. Simpson (McGill) enzymes and biopolymers
• Dr. Daneshtalab (MUN) pharmaceutical/nutraceutical
  applications
• Dr. Al-Taweel (Dalhousie) advanced separation,
  bioreactors and process design
• Dr. Pink (St. FX) mathematical modeling of
  interphase interactions
• Dr. Helleur (MUN) isolation and characterization
  of biopolymers
• Industry partners
• Materials, sites, market information, economic
  information

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Focus Areas for Applied Research

• Salmonid aquaculture
• Pan Atlantic industry
• Significant volumes of wastematerials
• Available year-round
• Fresh quality
• Good potential source of marine enzymes, oils,
  and other bioactive substances
• Strong potential for short medium term positive
  impacts.
• Shrimp peeling plants.
• Large volumes of waste materials. ( gt35K
  MT/annum)
• Source of known bioactive materials(chitin,
  chitosan derivatives)
• Logistical and economic constraints
• Strong potential for short medium term positive
  impacts.

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C-ASD (MI)Industrial technology, Process
engineeringProject management

• Logistical GIS based study on by-product streams
  from NL processing operations.
• Stabilization and compaction of shrimp shell.
• Control of hydrolytic processes of crustacean
  proteins.
• Control of hydrolytic processes of salmonid
  proteins.
• Protein/oil separation of salmonid hydrolysates
• Cost effective concentrating of hydrolysates
• Pilot scale process development

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Progress to Date and Current Status

• Multi- institutional agreement signed between
  MUN, Dalhousie and St. FX.
• MI designated as project lead. (Operations
  financial)
• Inaugural workshop of PIs, funding agencies and
  internal project management held _at_ MI Nov
  17th-18th 2003
• Equipment purchasing progressing. POs issued,
  tender calls announced.
• Building renovations tender closing January 26th.
• PI research proposals and budgets due January
  9th.
• Appointments to advisory board by March 31st.
• 2 new C-ASD positions, (Food Scientist and
  Process Engineer) April 1st.

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Economic, Socio-economic and environmental
benefits

• Strengthen/create alliances and partnerships
• Increase employment in rural areas
• Enhance the market value and sales from finite
  marine resources
• Train highly qualified personnel
• Increase RD employment
• Leverage RD funding from external sources
• Reduce industrial environmental impacts

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THE VISION
A Centre of Excellence, providing a One
Stop Shop for R D directed towards the
Commercial Development of Marine Bioactive
Compounds