Update

Aqua feasibility study3

In partnership with Mainstream Aquaculture and the Victorian Government, Opal Australian Paper has completed an Aquaculture feasibility study into Barramundi production in the Latrobe Valley. The study investigated the viability of establishing an enclosed Recirculating Aquaculture System (RAS) facility located in the Latrobe Valley with a capacity of up to 10,000 tonnes/year. Importantly the proposal would utilise infrastructure with spare capacity from the Maryvale pulp and paper mill.This $1.24 million feasibility study assessed the technical, commercial, social and environmental aspects of a leading edge RAS facility.The study concluded:• RAS design and location is optimised at a scale of 3,700tpa

located adjacent to Maryvale Mill.• during construction an estimated 239 jobs (including flow on)

would be created in the Latrobe Valley and 364 jobs in Victoria.• once operational it is estimated the project would provide 169

jobs (including flow on) in the Latrobe Valley and generate $36M in economic value add. For Victoria this would increase to 263 jobs and $55M value add.

• intensive aquaculture farming has excellent sustainability credentials including superior feed conversion, water conversion and space conversion efficiencies compared to traditional protein sources.

• the proposal requires significantly more capital funding than previously estimated.

Maryvale Aquaculture is

technically, socially and environmentally viable. Further work is required

to improve the commercial returns

of the project.

Barramundi Fingerlings Juvenile Barramundi

3AQUA FEASIBILITY STUDY UPDATE

Mainstream Aquaculture is a global leader in premium Barramundi production exporting to 24 countries around the world.

Stage 1 assessed Maryvale Mill infrastructure and spare resource capacity which could be leveraged to support a RAS. The Input Resources Study was completed in May 2019 and recommended a staged approach with a first stage 3,700 tpa production facility to best match the existing Maryvale Mill waste water treatment capacity. It also found that there is strong potential for significant further capacity increases.

Stage 2 identified significant employment opportunities, recommended a preferred logistics approach and network, assessed the most attractive target market segments and recommended a preferred product option. Preliminary plant layout and designs were completed and the facility site was selected. The Stage 2 Technology, Market and Logistics Study also identified further opportunities including the potential establishment of a Nursery and regional Processing facility.

Stage 3 evaluated the commercial viability and identified a significant increase in the capital funding requirement resulting in lower than anticipated returns for the proposal. Key additional costs from this stage included higher utilities connections costs, increased scope to include Nursery and Processing Facilities, and a longer startup period to produce fillet size Barramundi.

The study investigated three stages:-STAGE

01STAGE

02STAGE

03Input ResourcesStudy

COMPLETE

BusinessCase

Technology, Marketand Logistics Study

COMPLETE COMPLETE

CASE STUDY 1

CASE STUDY 2

STAGE

01

STAGE

02

STAGE

03

Source: Food and Agriculture Organisation of the United NationsFAO United Nations data measures whole fish equivalent in tonnes

Comparison of Australian seafood consumption and Australian seafood production in tonnes

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

700,000t

600,000t

500,000t

400,000t

300,000t

200,000t

100,000t

0t

IMPORTSAustralian

SeafoodConsumption

AustralianSeafood

Production

70% of Australia’sconsumed seafood is imported

70% 68%

68% of seafood imports are from Asia

Water Conversion E�ciency 1 Space Conversion E�ciency 5

4330 L/kg

6000 L/kg

10400 L/kg

15400 L/kg

Mainstream Barramundi 450 L/kg

3.53 m2/kg

3.76 m2/kg

7.19 m2/kg

8.11 m2/kg

Mainstream Barramundi 0.04 m2/kg

Wat

er re

quire

d (L

TR/k

g) p

er k

ilogr

am p

rodu

ced

Land

requ

ired

(m2 /k

g) p

er k

ilogr

am p

rodu

ced

Feed Conversion E�ciency 2,3,4

0 1 2 3 4 5 6 7 8

Mainstream Barramundi

Feed

requ

ired

(kg/

kg)

per k

ilogr

am p

rodu

ced

PoultryPork

LambBeef

The Opal Australian Paper and Mainstream Aquaculture Team thank you for your interest in this important study. We will now seek to find ways to reduce the project costs and improve the proposal’s commercial returns. We remain optimistic for the development of a significant new aquaculture sector in the Latrobe Valley.

References:1. Water Footprint Network, 2013. http://www.waterfootprint.org2. Poultry Sector Feed Conversion Ratios, 2014. http://webarchive.nationalarchives.gov.uk/20130123162956/3. Beef Cattle Feed Efficiency, 2014. http://www.beefusa.org/CMDocs/BeefUSA/Resources/cc2012-Beef-Feed-Efficiency--Dan-Shike.pdf4. Mainstream Aquaculture, 2014.5. The Walden Effect, 2014. http://www.waldeneffect.org/blog/Calories_per_acre_for_various_foods/