Royal CARIDEA LLC 1. ROYAL CARIDEA LLC Problem - World-wide Shrimp Production Practices are...

Royal CARIDEA LLCRoyal CARIDEA LLC

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ROYAL CARIDEA LLCROYAL CARIDEA LLC

Problem - World-wide Shrimp Production Practices are Unsustainable because of Climate Restrictions, Ecological Limitations, Feed Concerns, Labor Abuse, Shrimp Disease (EMS) and Health Concerns (Illegal Antibiotics)

Solution: Super-Intensive Raceway Shrimp Farming Technology (SIRSFT)

Why SIRSFT is a Disruptive Technology – what it is and how it works

Why will SIRSFT be Successful

People Behind the Technology

Intellectual Property

Presentation OverviewPresentation Overview

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CARIDEA CARIDEA LLCCARIDEA CARIDEA LLC

The ProblemThe Problem

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Global “capture” production ofGlobal “capture” production ofLitopenaeus vannameiLitopenaeus vannamei

Global aquaculture production ofGlobal aquaculture production ofLitopenaeus vannameiLitopenaeus vannamei

Fisheries worldwide are in collapse4


In Asia, the average intensive farm has been found to survive for only 2-5 years before serious pollution and disease problems cause early pond closures.

Overstocking and indiscriminate use of low quality feeds, antibiotics, and water additives are widely practiced.

Over half of the shrimp ponds in Thailand (where 85% of the production systems are intensive) have shutdown within the first decade of operation leaving behind a lasting negative ecologic impact.

Unsustainability of Industrial Shrimp Unsustainability of Industrial Shrimp Farming - Alfredo QuartoFarming - Alfredo Quarto

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Disease outbreaks, environmental degradation, and management practices result in reduced production at all levels.

Only 17% of nutrients in feed are converted into harvested shrimp in an intensive farm operation.

Waste feed and fecal matter result in reduced oxygen and environmental pollution of nearby estuaries. Water recycled into ponds carries with it microbial pathogens.

Major impact – Reduced survival and limited growth.

Unsustainability of Industrial Shrimp Unsustainability of Industrial Shrimp Farming - Alfredo QuartoFarming - Alfredo Quarto

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United States consumes over 556,000 tons per year, wild capture and farmed shrimp fill <6% of demand.

Market demand in Europe is increasing and elsewhere.

China is now net shrimp importer. Ecuador now exports majority of production to China.

There is very limited land left to exploit.

Unsustainability of Industrial ShrimpUnsustainability of Industrial Shrimp

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SIRSFT SIRSFT addresses all of these addresses all of these concernsconcerns in a in a positive and effective mannerpositive and effective manner.

There is an obvious and growing need to farm There is an obvious and growing need to farm shrimp in a shrimp in a responsibleresponsible, , sustainablesustainable, , traceable,traceable, and and low environmental impact manner low environmental impact manner which can which can enhance biosecurity (pathogen control), and help enhance biosecurity (pathogen control), and help protect the environment, whilst producing shrimp in protect the environment, whilst producing shrimp in a cost efficient manner a cost efficient manner

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Super-Intensive Raceway Shrimp Super-Intensive Raceway Shrimp Farming Technology (SIRSFT):Farming Technology (SIRSFT):

Sustainable Technology DrivenSustainable Technology DrivenAquaculture Aquaculture

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The SolutionThe Solution


What makes it a Disruptive Technology?

How SIRSFT Works.

SIRSFT Viable and Commercially Practical.

Super-Intensive Raceway Shrimp Super-Intensive Raceway Shrimp Farming Technology (SIRSFT)Farming Technology (SIRSFT)

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Research demonstrates that shrimp can be propagated at high densities in shallow water (water depths <30 cm). No environmental destruction (no use of ponds). No ground or water contamination.

Understanding the nutritive optimum requirements of shrimp grown under high stress conditions.

Formulation of a feed that optimizes growth under conditions of super-intensive cultivation.

Demonstration that Shrimp can be effectively grown in “warehouse” facilities, permitting shrimp production at any location and at any time world-wide.

The disruptive nature of SIRSFT is predicated The disruptive nature of SIRSFT is predicated

on four technological advances:on four technological advances:

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Shrimp survivability >85%.

Biosecurity - System prevents introduction of pathogens and eliminates the need for chemicals and antibiotics.

Shrimp production >1000mt/ha/yr >1000mt/ha/yr vs <25mt/ha/yr in ponds

Technology is tested and validated.

SIRSFT MAKES SHRIMP PRODUCTION SUSTAINABLE, PROFITABLE, AND ECO-FRIENDLY.

Additional disruptive features of SIRSFT:Additional disruptive features of SIRSFT:

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ROYAL CARIDEA LLCROYAL CARIDEA LLCHow SIRSFT Works From A Performance Perspective How SIRSFT Works From A Performance Perspective

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Stocking densities are dramatically higher than that for intensive ponds (30g shrimp are harvested at a density of 100 shrimp/m2).

Each vertical stack will have shrimp in various stages of grow out. Shrimp 16, 24 and 30g can be harvested and ready for market every day of the year. This is accomplished by employing a multi-phasic multi-phasic production and partial harvest model production and partial harvest model

System uses minimal water and is ecologically and sustainably sound

Shrimp survival in excess of 80% is significantly greater than that obtained in intensive pond operations

Benefits Specific to Growing Shrimp in Stacked Benefits Specific to Growing Shrimp in Stacked RacewaysRaceways

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Shrimp are grown in vertically stacked shallow water raceways.

Post-larvae are stocked in nursery tank and after one month are transferred to

“Raceway #1”. Thereafter, they are rotated at monthly intervals from #1 to #2A

and #2B, then to #3A and #3B followed by #4A and #4B. Production pattern Production pattern

can be varied to meet market demand.can be varied to meet market demand.

Partial harvests at monthly intervals are executed at the end of 3 months, 4

months and at 4-5 month grow out periods allowing for harvest of 16, 25 and 30-

32g shrimp every month per stack (see Raceway Stack and Table 1: Production

Model).

Note: Every time raceway #1 is vacated it is restocked to start cycle over.

Thus, production is continuous in synchronous pattern

How SIRSFT WorksHow SIRSFT Works

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ROYAL CARIDEA LLCROYAL CARIDEA LLCRaceway Stack Showing Perspective Raceway Stack Showing Perspective

Raceway #2A

Raceway #3A

Raceway #4A

Raceway #1

Raceway #4B

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Raceway #2B

Raceway #3B

At completion of cycle marketable shrimp are maintained till harvested

in #4A & #4B

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TABLE 1: SEVEN TIER SUPER-INTENSIVE PRODUCTION MODEL

Unit Size Shrimp per Shrimp Shrimp Shrimp Weight of Biomass HarvestedBiomass

(Kg) Biomass (Kg)

Production Raceway Square Shrimp perShrimp

per % Harvested Harvested Shrimp Harvested Kilograms Harvested Harvested per

Phase Time Number Meters Square Meter Unit Survival Unit Square Meter grams per Square Meter per Unit Year (20 stacks)

2 2nd 4 weeks 1 160 560 89,600 0.9 80640 504 7 3.5 564 7338.2

3 3rd 4 weeks 2A 160 252 40,320 95 36288 227 15 3.4 544 7076.2

3 3rd 4 weeks 2B 160 252 40,320 95 36288 227 15 3.4 544 7076.2

Par Har 2A 160 92 14,688 1 14688 92 15 1.4 220 2864.2

Par Har 2B 160 92 14,688 1 14688 92 15 1.4 220 2864.2

4 4th 4weeks 3A 160 135 21,600 0.97 20952 131 24 3.14 503 6537.0

4 4th 4weeks 3B 160 135 21,600 0.97 20952 131 24 3.14 503 6537.0

Pa Har 3A 160 31 4,952 1 4952 31 24 0.74 119 1545.0

Par Har 3B 160 31 4,952 1 4952 30.95 24 0.74 119 1545.0

5 2 week completion 4A 160 100 16,000 0.98 15680 98 31 3.0 486 6319.0

5 2 week completion 4B 160 100 16,000 0.98 15616 98 31 3.0 484 6293.2

Total Harvest: kg /sq meter/stack/4 wk phase = 10.3032

Assumptions: 4wk/raceway phase, 2.4g/wk in linear growth phase to 25g, 2g/wk to 33gFirst 4 weeeks are carried out in PL tank. Pls ~0.7 g are then transferred to Raceway #1The target biomass for production is 3 kg per square meter. Four weeks in phase 1, 4 weeks in phase 3, then a partial harvest and transfer to phase 4.

After an additional 4 weeks a second partial harvest is performede and reamaining animals are moved to phase 5 to complete grow out cycle.

Based on this production cycle, 13 crops can be produced per year

Cycle can be varied to meet market demands.

Total Production (kg/sq meter)/stack = Par Ha 2Ar+Par Har 2B +Par har 3A+Par 3B+4A+4B/4 wk cycle= 10.30kg/sq meter/cycle

Grand total / stack /

year = 133.9kg/sq meter/yr

Grand total kg / stack

/ yr = 21424kg/stack/yr

Grand total kg / 20 stacks (plant) /yr = 428480kg/plant (20 stacks)

The above growth, survival, and production values are typical as represented by data for experiments by data for experiments conducted at theTexas Agrilife Research Maricukture Laboratory at Port Aransas.

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Notable Raceway FeaturesNotable Raceway FeaturesROYAL CARIDEA LLCROYAL CARIDEA LLC

Shrimp growth in shallow water 8 inches or 20 cm.

Design in particular center apex facilitates water circulation and center point feeding.

Large harvest pit, maximizes shrimp transfer, waste removal, etc.

All raceways have same design. Reduces cost.

Water use is minimized and reprocessed using recycling system

Using new fabrication techniques access to all parts of the raceway are accessible for operations and maintenance

Harvest Pit

Center Apex

Water Circulation

ROYAL CARIDEA LLCROYAL CARIDEA LLCStacked Raceway Design Considerations to Facilitate ModularStacked Raceway Design Considerations to Facilitate Modular

Construction and Environmental Requirements Construction and Environmental Requirements

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Raceway water depth 8 inches (41.25 lb./ft2). Seven raceways per stack having total

surface area of 1712 ft2/stack with a total water weight of 484,340 lb. that must be

supported by structure. Shrimp growth maximized at 88°F: Necessitates methods to minimize energy costs,

water evaporation and maximize water aeration, feed distribution and utilization, etc.

Requirement: Requirement: Development of fully enclosed system, self-Development of fully enclosed system, self-supporting, fully accessible design, totally independent of supporting, fully accessible design, totally independent of surrounding building constructionsurrounding building construction

Solution: Intermodal shipping containers:o Reduced costo Structural integrity when stackedo Self-containedo Readily available

ROYAL CARIDEA LLCROYAL CARIDEA LLCStacked Raceway Design To Facilitate ModularStacked Raceway Design To Facilitate Modular

Construction From Pre-Fabricated Components Construction From Pre-Fabricated Components

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Raceways constructed inside container,

containers bolted together along linear axis to

create a fully functional seven raceway stack.

Feed, water for recirculation and harvesting

shrimp, aeration, etc. will be ported through

the sides. Each raceway will be physically

separated from the one above and below.

Walls insulated to minimize heat loss or gain.

Monitoring of shrimp, feed, etc., monitored by

computer linked sensors and digital cameras

installed through ports in the side of each

container.

ROYAL CARIDEA LLCROYAL CARIDEA LLCStacked Raceway Design To Facilitate ModularStacked Raceway Design To Facilitate Modular

Construction From Pre-Fabricated Components Construction From Pre-Fabricated Components

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Side View of Two 53” Stacked Containers

Containers fully self-supporting – can be stacked seven high.


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Aspects ofsustainability Extensive

Semi-intensive Intensive

Super-intensive(SIRSFT)

Financial IRR(Internal Rate of Return)Financial PMProfit MarginLabor Cost(number of employees)Land productivity(kg/ha; $/ha)Water productivity(kg/m3) Nutrient conversion efficiency

Energy efficiency

Effluent quality

Risk of production failure

Long term sustainability of production

Low to High

Low to High

Very Low

Low

Low

Low to HighMedium to Very High

Low to Very High

Low to Very High

Low to Very High

Low to Medium

Low to Medium

Low to Medium

Low to Medium

Medium

Low-medium

Low to Medium

Medium to High

Low to High

Low to Very High

Low to Medium

Low to Medium

Medium to High

Medium to High

High

Low to High

Low to High

Medium to High

Low to High

Low to Very High

Medium to High

Medium to High

Medium to High

Very High

Very-high

Medium to Very-high

High to Very High

High to Very High

Low to Medium

High to Very High

Farming Intensity and Aspects of SustainabilityFarming Intensity and Aspects of Sustainability

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Why will SIRSFT be Successful?Why will SIRSFT be Successful?


Feed has been formulated and repeatedly tested to maximize

growth and minimize animal stress in a high stocking density

environment.

High quality floating feed is provided 24/7. Minimal wastage and

no diurnal variation. Feed conversion ratios (FCRs) of 1.6 or better

maintained with a production of >100 kg of shrimp/year/m2 of floor

space occupied by a stack.

Shrimp are maintained under disease free ideal conditions.

Reduced production and capital costs.

Sustainable with significantly reduced environmental issues..Sustainable with significantly reduced environmental issues..

SIRSFT will Succeed because:SIRSFT will Succeed because:

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BiosecurityBiosecurity - Raceway system is biosecure; no exposure to marine pathogens.

PredictabilityPredictability - Year round, reliable production – elimination of seasonal market restrictions due to availability.

Price Point Price Point - Large U15 (30g +) freshly harvested product (never frozen) commands a higher price point, and live

shrimp commands an even higher price (as much as 2-4 times higher than frozen heads-on.

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SIRSFT will Succeed because of:SIRSFT will Succeed because of:


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True value of technology as stated True value of technology as stated by shrimp producer in Thailand:by shrimp producer in Thailand:

Durwood M. Dugger ([email protected]): When you combine theft losses, diseases that might be averted with a closed (and biosecure) environment and the multi-crop advantage of temperature controlled, year-round production without seasonal growth slumps due to low temps (common even in the tropics with equatorial dry seasons), the additional capital for recirculation aquaculture systems (RAS) seems economically justified in the long term.


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Who are the Principles Behind the Who are the Principles Behind the Technology?Technology?


An early pioneer in how to breed and propagate shrimp in captivity

Developed the feed formulation that promotes growth and production in a super-intensive raceway system.

Invented the technology that allows propagation of shrimp in

shallow stacked raceways shallow stacked raceways (break through (break through technology)technology)..

Conducted five consecutive trials at the world’s largest shrimp nutrition mariculture facility to verify growth parameters, culture conditions, feed formulations, and most importantly

economic feasibility.

Expertise of the SIRSFT inventor: Expertise of the SIRSFT inventor:

Dr. Addison LawrenceDr. Addison Lawrence

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Dr. Lawrence is a world authority on shrimp nutrition and aquaculture. Consults for companies

worldwide.

He is a Senior Faculty Fellow, Regents Fellow and Project Leader at Texas A&M University. He has mentored over 90 graduate students and carried out >$17 MM of research.

He developed and runs the largest shrimp nutrition mariculture facility in the world, located in Port

Aransas, TX.

Expertise of the SIRSFT inventor: Expertise of the SIRSFT inventor:

Dr. Addison LawrenceDr. Addison Lawrence

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Ph.D. in medical microbiology with specialization in virology.

Academic and Pharmaceutical Research appointments. Served as Associate Professor of Veterinary Microbiology

at Texas A&M University. Worldwide business experience. CTO and co-founder of Mionix Corporation, a developer

and distributor of antimicrobial food and feed products to the agriculture and aquaculture industries. Developer

of Vitoxal® a shrimp feed additive that controls pathogens in shrimp without the need for antibiotics.

Dr. Maurice KempDr. Maurice Kemp

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USA patent # 8,336,498 System and Method For Super-Intensive Shrimp Production issued December 25, 2012.

System and Method For Super-Intensive Shrimp Production issued in EU and China November 2013

Construction of Multi-Phasic Integrated Super-Intensive Shrimp Production System (Filed February 19, 2014)

Patents and Patents PendingPatents and Patents Pending


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Questions and AnswersQuestions and Answers

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