GREAT ATTENDANCE AT THE 2ND DANISH MACRO ALGEA CONFERENCE

GREAT ATTENDANCE AT THE 2ND DANISH MACRO ALGEA CONFERENCE AlgeCenter Denmark in cooperation with Nordic Algae Network hosted the conference and workshop in Grenaa, Denmark, the 19th and 20th of September 2012. Can you make profit from algae? This is an issue that was subject to enthusiastic discussion among 90 business people and researchers from small and large industrial enterprises and leading research institutions in Denmark, Iceland, Norway, Sweden and Great Britain, just to mention some of the nationalities which attended the conference Macro Algae from Research to Industry in a Nordic Perspective. For two successive years, AlgeCenter Denmark has been arranging the conference where the participants attending has the opportunity to obtain knowledge about how to produce algae in Denmark and not least how we can utilize algae. The conference applies to anybody who has an interest in using algae for different purposes, for instance to use it as a new gourmet vegetable, as animal feed, in organic soil improvement, production of ingredients for the food industry, water purification, energy or something totally different. The wide range of possibilities was reflected in the presentations, which varied from offshore cultivation of algae, business opportunities in China to utilization of algae for feed, food and energy. 1

Last year was the first time that the conference was held for researchers and the industry within the utilization of algae, and it was very fruitful. Not only many contacts were established; it was also an eye-opener to discover how keen the industry is to utilize the algae both in small scale and large scale, where tons in thousands can be used to produce sound and sustainable animal feed. This year, special attention was directed to our Nordic neighboring countries because the second day of the conference was dedicated to the Nordic Algae Network which is a project supported by Nordic Marine Innovation in Olso. Especially Norway and Iceland have long experience utilizing algae a knowledge and experience which the conference tried to communicate. Therefore it was extremely gratifying that so many foreigners attended the conference. 2

After two intensive days with presentations, posters, analyses and discussions, the news proved to be the fact that algae can be used for sustainable energy, sound and tasty food and as biological water purification filters. But also that the largest potential could be to use algae cultivated in Denmark in feed for pigs and fish bred in aquaculture, because algae contain proteins, vitamins, minerals and Ω-3 fatty acids. The two days of enthusiastic participants showed that there is a need for this platform in Denmark. With the conference s focus we hope to create even closer co-operative relations between industry and research and to secure a fertile soil for more constructive ideas pointing forward both in a small and a large perspective. Many participants at the conference expressed a need and desire for a defined legislation concerning the cultivation and utilization of algae at national as well as international level, and hopefully this conference as well as future conferences will help to create a relation between authorities, business sectors and researchers. One of the activities was a group discussion organized as a SWOT analysis of the Danish Industry in Algae utilization. The delegates was forming 5 groups, one English speaking, the others Danish speaking. The SWOT analysis is a well-known tool to unveil the position of a company or an industry sector in a market segment. The explanations of SWOT are: Strengths: Characteristics of the industry, which gives it an advantage over others. Weaknesses (or Limitations): Are characteristics that place the industry at a disadvantage relative to others. Opportunities: External chances to improve performance (e.g. make greater profits) in the environment for the industry. Threats: External elements in the environment that could cause trouble for the industry. In short, the outcome of the discussions was as follows (only few statements are mentioned): Strengths: Good Nordic brand, good access to coastal waters, NOMA (New Nordic Food), nitrogen uptake from aquatic systems, Denmark is an innovative country, good national network. Weakness: Already crowded coastal waters with Wild Life Protection Areas, ship routes, fishing activities. High labor costs in Denmark, Missing legislation on off-shore cultivation. Opportunities: Good branding as healthy food product, large world market, to be used in many different food and consumer products, the Danes are good in flexible solutions. Threats: Competition from Asia, no guidelines for the use of algae derived products, poor economy for bioenergy and bulk products, seaweed diseases, too much manual labor. Download the presentations from the conference on www.algecenterdanmark.dk. See more pictures from the conference here. 3

Interview with sponsor ORBICON: MARICULTURE BECOMES A LEVER FOR LARGE-SCALE PRODUCTION OF SEAWEED Orbicon gives advises within environment, supply and building, and their vision is to create sustainable and valuable solutions. Orbicon sees the mariculture industry s need to reduce the emission of nitrogen as a lever for large-scale production of seaweed, says Per Andersen, Lic. Scient., alga expert and Head of Section at Orbicon. Why did Orbicon choose to sponsor AlgeCenter Denmark s conference? We are very active within the blue biomass and involved in a series of research and development projects among these the projects MAB3 and KOMBI farming, where seaweed and mussels are the main issues. The KOMBI project searches for a possibility of using seaweed and mussels as compensation farming in the mariculture industry, and the MAB3 project examines the energy potential and the value-added products in seaweed. Moreover, we are involved in the development and establishment of ocean gardens, which are a kind of allotment garden at sea, for the present in Ebeltoft Creek, where the physical facilities are created by an association, which subsequently makes part of the facilities available for the association members for production of e.g. seaweed, mussels and oysters. The ocean garden concept also includes the creation of marine shelters or platforms for various activities and establishment of artificial reefs with fish, lobsters etc. We are involved in these projects because it is our hope to become advisors for the sector, and this requires good acquaintance with the sector. Which future prospects do you see in macro algae? We see big possibilities. We believe that macro algae in the future become an agent on equal terms with common mussels in connection with mariculture, which in Denmark has a strategic plan of multiplying its 4

production of farmed fish by five. The environmental authorities in Denmark require that the increased production of fish does not lead to an increase in nitrogen emissions, and this can be avoided by removing the nitrogen bound in biomass. Therefore we see the mariculture industry s increasing need for biomass production as a lever to change the macro alga production from small scale to a larger industrial scale. What did you learn at the conference? We gained a lot of knowledge by attending the conference. There were many relevant and technical presentations, and it was nice to become updated both within science and strategies in this field. It was also instructive, that the conference focused on the Nordic countries. The other Nordic countries have different natural conditions compared with Denmark, and therefore they approach things differently and we can learn a lot from them. Furthermore it was good to see the large frankness and willingness to cooperate in Denmark, which several of the Nordic participants emphasized as well. We represent a small country, we know each other crisscross and we have realized that we have to cooperate. Therefore the conference s frankness and fine dialogues were useful. Will Orbicon attend the conference in 2013? Sure we will. We will follow the process in this field very closely the next couple of years and I already look forward to the next conference. 5

Interview with sponsor HVEITI: LARGE-SCALE PRODUCTION OF SEEWEED IS A CHALLENGE Hveiti A/S from Grenaa, Denmark, has a mission: It wants to create growth and development through production of sustainably produced bioethanol, foodstuffs and feed and seaweed might be playing a decisive part in this field. But there are three obstacles when trying to reach the goal, says Steffen Cole Brandstrup, consultant at Hveiti. Why did Hveiti choose to sponsor AlgeCenter Denmark s conference? First of all because it is very important for us to be visible in the local area; but also because we want to attend to our network and keep updated in this field. Hveiti is right now searching for possibilities of creating a local production of brown algae as a future resource for biorefinery. It is a production concept which will take place in synergy with Hveiti s actual business plan which is to produce foodstuffs, feed and bioethanol out of winter wheat. Which challenges do you see in using macro algae for biorefinery? It has already been proved how to produce several species of brown algae, so an extension of the production will exclusively offer logistical challenges, which ought to be overcome. There are three main challenges, and the first is to find the sea area where the largest profits per hectare are achieved. The same problems exist onshore, but fortunately Grenaa is placed satisfactorily. The second challenge is the missing documentation of how the production will affect the ecosystem. Common sense points in the direction of a positive influence, but such things must be documented thoroughly - especially if the production at the same time should 6

function as compensation farming, e.g. in connection with mariculture and remove surplus nitrogen and phosphorus. Finally, it can be a slow affair to provide the necessary permissions from the authorities of getting at one s disposal the desired areas for a longer period of time. When being first movers in the field, it is really a bottleneck. These three issues constitute the primary obstacles for starting up a large-scale production of macro algae. Add to this that we need to develop the most cost-effective way to dry the seaweed and make it stable enough for storage. What did you learn at the conference? We used the conference to get updated in this field and to cultivate our network. We see a huge potential in a Danish large-scale production of brown algae with synergy to agriculture/mariculture. As mentioned, we have some challenges, but we believe that it soon becomes a reality. However, it is essential that commercial interests to a larger extent take the leadership when establishing such a production. We have moved far by now, and therefore we need practical persons to convert the theoretical knowledge to reasonable business plans, which start from the profitability of production meaning value-added products that are not far from the market. Theoretical considerations of a biorefinery potential do not become relevant until we have security for hectare profits and price. This year the attendance of a primary producer, Blue Food, was very inspiring. They represent the only company that actually is cultivating and applying the algae. It was a breath of fresh air and a fine response to the researchers more theoretical presentations of the potential. Will Hveiti attend the conference in 2013? Hveiti will definitely attend the conference next year. If we succeed in getting the biorefinery at Grenaa Harbour financed, it becomes even more relevant for Hveiti to participate and work targeted with the big potential of algae. 7

PROGRAM, SEPTEMBER 19 TH 2012 10.00-11.00 Registration: Kystvejens Hotel and Conference Center, Kystvejen 26, 8500 Grenaa 11.00-11.15 Welcome and info 11.15-11.45 Susan Holdt, Technical University of Denmark: Business opportunities for Nordic seaweed companies in China 11.45-12.05 Ólavur Gregersen, Ocean Rainforest: Ocean Rainforest and MacroBiotech - A viable means for the commercial cultivation of marine biomass in an open ocean environment 12.05-12.25 Rasmus Bjerregaard, Blue Food: Emerging commercial seaweed production in Denmark. An MTA approach 12.25-12.45 Bodil Pallesen, AgroTech: Drainage water for Protein Forage and Bioenergy - Cropping System for Aquatic Plants based on drainage water, a Demo Project 12.45-13.45 Lunch 13.45-14.05 Anne-Belinda Bjerre, Danish Technological Institute: The MacroAlgaeBiorefinery - sustainable production of bioenergy carriers and high value aquatic fish feed from macroalgae - the MAB3 project 14.05-14.25 Steffen Brandstrup, Brandstrup Consult A/S: Seaweed, an overlooked resource - A new approach towards a sustainable agricultural system 14.25-14.45 Merlin Alvarado-Morales, Department of Environmental Engineering, Technical University of Denmark: Life Cycle Assessment of biogas production process from Laminaria digitata 14.45-15.05 Behnaz Razi Parjikolaei, Institute of Chemical Engineering, Biotechnology and Environmental Technology, University of Southern Denmark: Determination of bioactive compounds in macroalgae from Nordic waters 15.05-15.45 Break 15.45-16.30 Michele Stanley, Scottish Association of Marine Science: Lessons and opportunities gained from BioMara 16.30-16.50 Andrew Ross, University of Leeds: Hydrothermal microwave extraction of macroalgae 16.50-17.10 Ramzi Cherad, University of Leeds: Supercritical water gasification of macroalgae 17.10-17.30 Annette Bruhn, Aarhus University: Algae for Biogas in the Central Denmark Region (2012-2013) 17.30-18.00 Ole G. Mouritsen: Seaweeds - in the name of deliciousness 18:00-18:10 End of conference 18:10-19:30 Poster session 8

PROGRAM, SEPTEMBER 20 TH 2012 08.00-08.45 Early tour by foot to AlgaeCenter Danmark, R&D facility 09.00-09.10 Nordic Algae Network in Brief. Lars Nikolaisen, Danish Technological Institute 09.10-09.30 State-of-Art on Algae activities in Iceland. Jón Trausti, MATÍS, Reykjavik 09.30-09.50 Short company profiles from Danish industry partners in the Nordic Algae Network. Ocean Center Denmark (Havets Hus), Orbicon A/S, Danish Shellfish Centre (Dansk Skaldyrscenter) 09.50-10.10 State-of-Art on Algae activities in Sweden. Eva Albers, Chalmers University of Technology 10.10-10.40 Coffee Break 10.40-10.55 The Seaweed Network in Denmark (Tangnetværket). Susan Løvstad Holdt, Ph.D 10.55-11.15 State-of-Art on Algae activities in Norway. Jorunn Skjermo, SINFEF, Trondheim 11.15-11.35 Industrial use of Macro Algae in Denmark over the last 100 years. Hans Porse 11.35-11.55 More short company profiles from Danish industry partners 11.55-12.15 State-of-Art on Algae activities in Denmark. Lars Nikolaisen, Danish Technological Institute 12.15-13.15 Lunch buffet 13.15-13.30 Introduction to SWOT analysis. Arrange working groups in DANISH and ENGLISH language 13.30-14.15 Group discussion SWOT 1: Threats and Weakness for the Danish Industry in Algae utilization 14.15-14.30 Plenum discussion for group conclusion in SWOT 1 14.30-15.00 Coffee Break 15.00-15.40 Group discussion SWOT 2: Strength and Opportunities for the Danish industry in Algae utilization 15.40-15.55 Plenum discussion for group conclusion in SWOT 2 15.55-16.00 Closing the workshop 9

PARTICIPANT LIST: Lars Nikolaisen Finn Skov Nielsen Peter Daugbjerg Jensen Lars D. M. Ottosen Bodil Pallesen Jeppe Bjerg Henning Lyngsø Foged Karin Svane Bech Henrik Jarlbæk DTU Søren Sørensen Poul Erik Nielsen Søren Espersen Søren Laurentius Nielsen Niels Enggaard Klausen Mads van Deurs Annette Bruhn Michael Bo Rasmussen Mette Nielsen Anne-Belinda Bjerre Hans Porse Agnes Mols Mortensen Andrew Ross Eleonora Miquel Becker Karin Loft Eybye Carsten Sjøholm Ramzi Cherad Behnaz Razi Parjikolaei Ditte Baun Larsen Anders Fredenslund Kurt Jensen Jonas Høeg Hansen Lone Frederiksen Poulsen Gitte Hastrup Lyngsø Einar Sveinn Ólafsson Eva Albers Jenny Veide Vilg Lone Thybo Mouritsen Grete Fogtmann Jensen Søren Hansen Heidi Timm Victor Abrahamsson Sidsel Sode Peter Jessen Irene Rodriquez Meizoso Lilli Mathilde Gruwier Larsen Krüger A/S AgroTech A/S DONG Energy A/S Agro Business Park A/S Fødevareinstituttet Mariendal Pen Agro ApS Søren Espersen Roskilde Universitet AgroTech A/S Nordshell Hans Porse Fiskaaling p/f University of Leeds Novozymes A/S University of Leeds University of Southern Denmark DTU Fødevareinstituttet Roskilde Universitet InterColloids Advisory Group Thorverk Ltd Chalmers University og Technology Chalmers University og Technology Havets Hus Havets Hus InvestInDenmark Orbicon Leif Hansen A/S Lund University Orbicon Leif Hansen A/S Snaptun Fisk Export A/S Lund University 10

Teis Max Boderskov Peter Schmedes Søren Sylvest Nilausen Jonathan Carl Eva-Mari Rahkola Michele Seghetta Olavur Gregersen Marianne Thomsen Ditte Tørring Jón Kárason Hans Ove Hansen Markus Klinger Hanne Mæhre Nicole Nicolajsen Kitte Kloster Nielsen Laila Kloster Nielsen Tanja Quottrup Egholm Ellinor Tjernström Alexander Dikly Merlin Alvarado-Morales Rasmus Bjerregaard Steffen Brandstrup Michele Stanley Susan Holdt Ole G. Mouritsen Sanne Schibsbye Svend Brandstrup Jens Kjerulf Christina Kjærby Hólmfridur Sveinsdottir Per Andersen Jorunn Skjermo Poul H. Madsen Laura Bailón Allegue Haraldur Hallgrímsson Kevin Philp Hordur G. Kristinsson Gudmundur Hreggvidsson VIFU, Videncenter for Fødevareudvikling Orbicon Leif Hansen A/S Det kongelige selskab for Norges vel Michele Seghetta Ocean Rainforest Aarhus University Dansk Skaldyrcenter Matis ohf/icelandic Food and Blotech R&D Dupont Nutrition Biosciences ApS Norwegian College of fishery Science DTU Trelleborgs Kommun Department of Bioteknologi, NTNU Technical University of Denmark BlueFood Brandstrup Consult Scottish Association of Marine Science Technical University of Denmark University of Southern Denmark Hveiti Hveiti Danish Shellfish Centre Regional Udvikling, Region Midtjylland Matis Orbicon Leif Hansen A/S SINTEF Grønt Center Matis CyberColloids Ltd Matis Matis SPONSORS: COLLABORATORS: 11