This was an Aquaculture presentation to the Dayton Water Conference on the fastest growing food industry in the world and which creates a large balance of trade for the U.S. It is also a new market for water treatment.

1. AQUACULTURE - An Emerging Market for Water Treatment
The Fastest Growing
Food Business in the
World is Aquaculture.
Phillip L. Hayden, Ph.D., P.E.
Slide 1

2. AQUACULTURE - An Emerging Market for Water Treatment
The Wild Fish in the Oceans
are becoming Endangered
Species:
• Factory Ships are
harvesting fish to
extinction;
• pH of the Oceans is
decreasing;
• Dead zones due to
Nutrification (N);
• Oil Spills;
• Toxic Organics, Hg; and
• Plastics.
Slide 2

3. AQUACULTURE - An Emerging Market for Water Treatment
• Aquaculture is one of the fastest growing
forms of food production in the world.
• Many worldwide fisheries have peaked and
aquaculture is widely recognized as critical to
increasing global seafood supplies.
Slide 3

4. AQUACULTURE - An Emerging Market for Water Treatment
• Aquaculture produces almost half of the fish
consumed by humans globally and that trend
continues to increase.
• Global wild fish harvest is between 90 and 95
million tons per year.
Slide 4

5. AQUACULTURE - An Emerging Market for Water Treatment
• Global aquaculture production is nearly 60
million tons, valued at $70 billion.
• U.S. freshwater and marine aquaculture
combine to provide about 5% of the seafood
consumed in the Unites States. Marine
aquaculture represents only 20% of domestic
aquaculture.
• The majority of U.S. commercial marine
aquaculture is shellfish – oysters, clams, and
mussels.
Slide 5

6. AQUACULTURE - An Emerging Market for Water Treatment
• Global wild fish harvest is between 90 and
95 million tons per year.
• Global aquaculture production is nearly 60
million tons, valued at $70 billion.
Slide 6

7. AQUACULTURE - An Emerging Market for Water Treatment
JAKARTA, Indonesia—The
world's biggest source of
tin and thermal coal now
wants to dominate the
global market for another
vital commodity: fish.
Exporters plan to double
the country's haul of
tilapia, catfish, lobster and
other seafood.
WSJ 4/18/2011
Slide 7

8. AQUACULTURE - An Emerging Market for Water Treatment
China, with one-fifth of the
world's population,
accounts for two-thirds of
the worlds
reported aquaculture
production.
China's 2005 reported
harvest was 32.4
million tonnes, more than
10 times that of the
second-ranked nation,
India, which reported 2.8
million tonnes.[2]
Slide 8

9. AQUACULTURE - An Emerging Market for Water Treatment
Slide 9

10. AQUACULTURE - An Emerging Market for Water Treatment
The impacts of
irresponsible expansion of
shrimp aquaculture
activities over the past 25
years have been many and
varied:
• Coastal Habitat Degradation
• Depletion of Wild Fish stocks
• Misuse of chemicals and
antibiotics, and coastal
pollution
• Spread of Diseases
• Introduction of Exotic Species
• Social impacts and Human
Rights Abuses Slide 10

11. AQUACULTURE - An Emerging Market for Water Treatment
Going Forward!
What are the Drivers in the U.S.?
Farm ponds will no
longer be able to
compete.
A new breed of
technologists will be
required to engineer,
build and operate
advanced processing
(manufacturing)
facilities.

12. AQUACULTURE - An Emerging Market for Water Treatment
Quality Must Improve!
• No Antibotics;
• No Infectious Bacteria,
Viruses, Fungi or Parasites;
• No Toxic Chemicals – Hg,
PCB’s, Cd, Pb, Pesticides, etc.;
Slide 12

13. AQUACULTURE - An Emerging Market for Water Treatment
Highly Automated and
Monitored!
• Environmental Conditions –
Temperature, DO, pH, TDS, N,
TOC/COD/BOD;
• Standby Power; and
• Monitor Growth.
Slide 13

14. AQUACULTURE - An Emerging Market for Water Treatment
• Fish Production Systems will cover
acres, not feet;
• Multi species of fish will be raised;
• Processing Facilities will be close
or on-site; and
• A multi-disciplinary staff will be
required.
Slide 14

15. AQUACULTURE - An Emerging Market for Water Treatment
Water Quality Treatment
• Recirculated System;
• Remove BOD – Oxygen
Consuming Wastes;
• Remove Suspended
Solids;
• Remove Excess N & P;
• Aeration – Maintain DO;
and
• Ozone for Disinfection. Slide 15

16. AQUACULTURE - An Emerging Market for Water Treatment
BOD Removal
• 10 lbs BOD5 generated per
30 lbs Fish;
• Excess Food;
• Remove BOD with:
• BioFilters;
• Activated Sludge; or
• Submerged Aquatic
Systems (Wetlands). Slide 16

17. AQUACULTURE - An Emerging Market for Water Treatment
Submerged Aerobic BioFilter:
• SAF utilizes attached bacteria to
high, surface-area media bed.
• Air is introduced from below.
Slide 17

18. AQUACULTURE - An Emerging Market for Water Treatment
Activated
Sludge
Process
utilizes
Suspended
Bacteria to
remove BOD.
Our plant in
Bucharest
Slide 18

19. AQUACULTURE - An Emerging Market for Water Treatment
• Submerged
Aquatic Filter –
Michrow, Poland
• 50 m x 100 m
• 1 m deep
• Discharged to
National Forest
Slide 19

20. AQUACULTURE - An Emerging Market for Water Treatment
• Gravity
Sand Filter
will remove
Suspended
Solids and
act as a
BioFilter
Slide 20

21. AQUACULTURE - An Emerging Market for Water Treatment
N & P Removed through Aquaponics
Slide 21

22. AQUACULTURE - An Emerging Market for Water Treatment
Ozone is a highly
Reactive and
Oxidative Gas
• Disinfectant;
• Oxidize
Organics; and
• Remove Odors.
Slide 22

23. How did I get interested in
Aquaculture?
We invested in Enviroflight, a
start-up company which is
developing bioconversion
technology to produce waste
materials into valuable products.
23

24. Our Founding Mission - Enviroflight
• Develop a natural, animal based
protein source to support the
aquaculture industry.
• Produce locally sustainable
proteins, natural oils, and
fertilizers in a clean, odor free,
and responsible way.
• Generate shareholder wealth
and reduce the environmental
and financial costs of our food
chain.
24

25. How Do We Do it?
Insect based Bioconversion
• EnviroFlight raises and process the
larvae of the Black Soldier Fly (Hermetia
Illucens) on an industrial scale
• Distribution
– Western Hemisphere
– South East Asia
– Australia.
• Damage
– Do not bite
– Not known to transmit any diseases.
25

26. $800.00
$1,000.00
$1,200.00
$1,600.00
$2,000.00
$1,400.00
Jan-06 $1,800.00
Apr-06
Jul-06
Oct-06
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
26

27. Market Opportunity
Replace Marine Sourced Materials in Aquaculture Feeds
Aquaculture is constrained
by the availability of cost- EnviroFlight bioconversion
The U.S. generates nearly
effective feeds. technology creates a cost –
40 million tons of Dried
effective, locally produced
Distillers Grains with Prices of fish meal and oil alternative to wild caught
Solubles (DDGS) annually have grown by 400% over aquaculture feeds
the last 20 years.
International Fishmeal and Fish Oil Association estimates that each ton of
fishmeal travels an average of 5,000 kilometers to reach its end-user in the
aquaculture industry.
27

28. The EnviroFlight Promise
Quality Ingredients / Quality, Socially Responsible Products
EnviroFlight starts with safe, sanitary, and FDA and AAFCO
approved feed ingredients in the development of its products.
Fertilizer or Protein Meal Oils
Feed Supplement
28

29. Research Manufacturing Plant
• Bioconversion System • Insect Rearing Facility
– System Automation – Greenhouse
(temperature, humidity) – Managed, predictable
– Remote Monitoring breeding
– 500 ton/year DDGS – Incubation Techniques
conversion capacity • Material Handling
• 62 ton/year protein meal
– Feed Mixtures
• 38 ton/year oil
• 390 ton/year fertilizer – Oil extraction
– Meal processing
– Fertilizer Packaging
29

30. Research Manufacturing Plant
30

31. Research Manufacturing Plant
31

32. Research Manufacturing Plant
32

33. AQUACULTURE - An Emerging Market for Water Treatment
After Studying Commercialization of Algae and
Black Soldier Flies, the best approach to the
market is BOOT (Build, Own, Operate & Transfer)
using a Multi-Disciplinary Engineering and
Scientific Team.
• ME, ChE, EE
• Envir E
• Fish Biologists
• Fish Feed Spec
• Fish Disease
• QC Techs
• BioSecurity
Slide 33

34. AQUACULTURE - An Emerging Market for Water Treatment
BSF
DDG C12 Oils
Castings (N&P)
Ethanol, Breweries, Distilleries
Food Wastes, Animal Wastes Larval Meal – N
Live
• Gravity Filter Fish
• Ozone
Fresh
Veggies
• BioFilter
Slide 34

35. AQUACULTURE - An Emerging Market for Water Treatment
Milwaukee
Sweet Water’s sustainable aquaculture system is based on Will
Allen’s (MacArthur Genius Award Winner and Founder of
Growing Power) three-tiered, bio-intensive, simulated wetland.
In the re-circulating systems, the fish waste acts as natural
fertilizer for plant growth and the plants act as a water filter. Our
current vegetation includes various lettuce and basil,
watercress, tomatoes, peppers, chard, and spinach. Our fish are
tilapia and perch.
Slide 35

36. AQUACULTURE - An Emerging Market for Water Treatment
The mission of the Ohio Center for Aquaculture
Research and Development (OCARD) is to increase the
productivity, innovation and profitability of Ohio and US
aquaculture operations, while respecting sustainability
and good stewardship, by implement of innovative
research, outreach, extension and education programs in
aquaculture.
Slide 36