Tag: financial assistance

Indoor Shrimp Farming: A New Market?

  • Russ Allen breeds and grows thousands of shrimp in a barn in his backyard. The entire process is contained. There's no water coming in or going out, and there's no waste leaving his farm. (Photo by Corbin Sullivan)

Recently, shrimp surpassed tuna as the most-consumed seafood in the United States. Most of the shrimp Americans eat is produced in Southeast Asia, India, Mexico and Brazil. Russ Allen wants to change that. He’s opened one of the world’s few indoor shrimp farms in the Midwest. Allen says his operation meets an obvious market demand, is good for the environment, and presents a new economic opportunity for the country. The Great Lakes Radio Consortium’s Erin Toner reports:

Transcript

Recently, shrimp surpassed tuna as the most-consumed seafood in the
United States. Most of the shrimp Americans eat is produced in
Southeast Asia, India, Mexico and Brazil. Russ Allen wants to change
that. He’s opened one of the world’s few indoor shrimp farms in the
Midwest. Allen says his operation meets an obvious market demand, is
good for the environment, and presents a new economic opportunity for
the country. The Great Lakes Radio Consortium’s Erin Toner reports:


In a big blue barn in Russ Allen’s backyard, there are thousands of
shrimp… beady-eyed, bacteria-munching, bottom-feeders.


Here, the life cycle of the shrimp starts in the breeding center, where
two big tanks of water mimic a place 150 feet deep off the shore of the
ocean where the water quality and temperature are stable. Allen says
it’s the perfect environment for shrimp to mate.


“Like in just about all animals the male chases the female, and they do a
little courtship dance, and then the male will deposit a spermatophore on
the female and when she spawns, the eggs pass through the
spermatophore, are fertilized and then go out into the water.”


A few months later, the shrimp end up in the production room where all
they do is eat, and sometimes, if they get excited or spooked, they jump
right out of their tanks.


“They don’t like light…”


“Oh (laughing)! Do you ever have them hit you as you’re standing
here?”


“Oh yeah, that’s why we have the nets up so they don’t jump.”


Russ Allen has been farming shrimp for three decades. He started in
Ecuador, and then went to Belize, where he started the country’s first
shrimp farms.


Allen and his wife moved back to Michigan in 1990, when he started
designing his indoor shrimp farm. It finally opened for business about a
year ago, and now, he’s selling all the shrimp he produces.


(Sound of shrimp market)


Allen says his indoor shrimp farm is one of the first of its kind in the
world. There’s no waste leaving his farm, so pollution’s not an issue,
and because there’s no water coming in or going out, there’s no danger
of introducing diseases into his system.


Allen says an indoor farm also moves shrimp farming away from fragile
coastal ecosystems. That’s where most of the industry has developed
around the world.


“In a place like the United States with all the development on the
coastline and land costs, you can’t really do it anywhere near the ocean
anyway. So, if you’re going to have a viable shrimp farming system in
the United States, you need to move it away from – you know – these coastal areas.”


But indoor farms haven’t always been a viable option, either.


In the 1980s, a handful of them opened in the U.S., including a big one in
Chicago. They all failed because the technology didn’t work quite right,
and because the cost of production made them unable to compete with
outdoor farms.


Bill More is a shrimp farming consultant and vice president of the
Aquaculture Certification Council. He says now, indoor shrimp farmers
have a better chance of making a go of it.


“Coming from third-world countries, there’s been a lot of issues with
illegal antibiotics being found in shrimp. There’s been environmental
and social issues that environmentalists have come down hard upon. It’s
sort of prompted the opportunity for a good indoor system where
you could manage those and you didn’t challenge the environment.”


But More says creating and maintaining a clean, organic indoor shrimp
farm is still very expensive, and it seems an even bigger problem now
that the price of shrimp is the lowest it’s been in a decade.


Shrimp farmer Russ Allen says he’s invested several million dollars in
his business. He’s the only guy in the game right now, which he
admits is good for business, but he doesn’t want it that way. He says
he’d like to see the industry grow in Michigan, and throughout the
country.


“In order to do that the government has got to be a partner in this, and
that has been the challenge… that when you don’t have an industry, you
don’t have lobbyists and nobody listens to you and you can’t get an
industry until they do listen to you. So, that’s been our real challenge
right now.”


Allen says he wants the government to offer tax breaks and other
financial assistance to the aquaculture industry like it does to other
sectors of the economy, but he says he can’t even get some local elected
officials to come and see his shrimp farm. He says with so many
companies moving jobs and factories overseas, he thinks government
leaders should be looking for ways to help new and perhaps
unconventional industries like his, grow.


For the GLRC, I’m Erin Toner.

Related Links

Converting Garbage Into Ethanol

A company in the Great Lakes region wants to convert trash into fuel. You might have heard of plants that burn garbage to create energy. But this plant is different. This plant would convert organic trash into ethanol. The Great Lakes Radio Consortium’s Julie Grant reports:

Transcript

A company in the Great Lakes region wants to convert trash into fuel. You might have
heard of plants that burn garbage to create energy. But this plant is different. This plant
would convert organic trash into ethanol. The Great Lakes Radio Consortium’s Julie
Grant reports:


The walls of Genahol, Inc., are covered with pictures of Donald Bogner’s wife and
children. Bogner is a ruddy-looking man with a friendly attitude. He’s the kind of guy
who likes to get things done. He started Genahol seven years ago, with the idea that he
could turn paper, leaves, and grass clippings into fuel.


“The green waste is such a problem, because, what do you do with it? Well, you chop it
up, you mix manure with it, you package it, and sooner or later you finally say, hey, I
can’t sell this stuff.”


Bogner says Genahol can make fuel out nearly any plant material. A lot of green waste
winds up in landfills. But Bogner patented a new kind of process. It converts green and
paper waste to sugar, distills the sugar into alcohol and transforms the alcohol into
ethanol. Until now, ethanol has usually been made from corn or other grains. Bogner
says they’ve been surprised by how many products they can re-use to make ethanol.
Anything from stale beer, to old perfume, or factory-rejected candy…


“You just can’t imagine the volume when you start talking about Christmas candy canes.
And a bad batch of candy canes may be three million candy canes that a producer has to
destroy because they came out wrong in a batch or whatever. So, you know, three
million candy canes (laughs).”


If a Genahol facility is built, Bogner says it could convert anywhere from one hundred to
one-thousand tons of waste per day and make up to three million gallons of ethanol a
year. As long as the selling price of ethanol remains over a dollar a gallon, Bogner says
Genahol can make money. But he needs a deal. He needs a city that’s willing to let him
sort through the trash. It should be an easy sell, he says, because cities could save landfill
space and get a cut of the profits from ethanol sales.


“The hardest sell right now is that we cannot right now take them to a facility and show
them ethanol coming out of a spigot.”


And that’s the problem not only with Genahol, but with other companies that want to
convert waste to ethanol. Their ideas are theoretical. But Bogner says things are about to
change for Genahol. He’s negotiating a contract with the Solid Waste Authority of
Central Ohio, known as SWACO. It is in charge of trash in Columbus and owns one of
the largest public landfills in the country. Executive Director Mike Long is interested in
Bogner’s ideas.


“We are always looking for new methods, cost effective methods to reduce, reuse and
recycle the waste stream to reduce reliance on landfills. That is our primary purpose at
SWACO, to reduce reliance on landfills.”


SWACO already diverts yard wastes and paper from the trash stream, but there hasn’t
been much of a market for those products. That’s why Long says contracting with
Genahol makes sense.


“It’s being approached on, I think, a very conservative point of view, small scale pilot
project. Trying to minimize the risk to SWACO and the public from a financial point of
view.”


It might be a bit of a risk. SWACO and other trash managers got burned in the mid-
1990s by waste-to-energy facilities. Some plants were forced to close because they
emitted too much pollution. Genahol’s Don Bogner says the only emissions from his
plant will be carbon dioxide, which he plans to capture and sell for industrial use.
Bogner and SWACO are negotiating one of the first deals in the nation for a trash-to-
ethanol plant. Many entrepreneurs trying to sell similar ideas are having a tough time
making a deal. Monte Shaw, an ethanol industry spokesperson, says these companies
should hang on a little longer.


“It’s always harder to be first. It’s always harder to convince investors, and banks, and
government agencies, that this is going to work. ”


The government is considering tax breaks and financial assistance to encourage new
ethanol plants. One reason the government is interested is to cut dependence on foreign
oil. Another reason, is ethanol is a good replacement for MTBE in gasoline. MTBE has
been used to reduce ozone pollution, but the chemical has contaminated water supplies
and the government wants to phase it out. Don Bogner expects the move from MTBE to
increase demand for ethanol. He’s wondering if that means Genahol will be able to turn a
profit.


“That’s what my wife asks me, are we going to make money this year?”


For the Great Lakes Radio Consortium, I’m Julie Grant in Kent.

CONVERTING GARBAGE INTO ETHANOL (Short Version)

A company in the Great Lakes region wants to convert trash into fuel. This could be one of the first plants in the nation to convert organic trash into ethanol. The Great Lakes Radio Consortium’s Julie Grant reports:

Transcript

A company in the Great Lakes region wants to convert trash into fuel. This could be one
of the first plants in the nation to convert organic trash into ethanol. The Great Lakes
Radio Consortium’s Julie Grant reports:


The president of Genahol, Inc., says his facilities can make fuel out of nearly any plant
material. A lot of paper, leaves, and grass clippings wind up in landfills. But Donald
Bogner patented a new kind of process. It converts green waste to sugar, distills the
sugar into alcohol and transforms the alcohol into ethanol. Ethanol is usually made from
corn or other grains. Bogner says Genahol reuses other people’s trash.


“Genahol actually receives payment for its materials. Rather than going out and having
to pay a dollar fifty to two fifty a bushel for corn or something, we actually get paid on a
tonnage basis. So it can be very, very profitable.”


No Genahol facility has yet been built. Bogner and the Solid Waste Authority of Central
Ohio are negotiating one of the first deals in the nation for a trash-to-ethanol plant.


For
the Great Lakes Radio Consortium, I’m Julie Grant in Kent.