Exports from the world's first red-feed factory

The factory in Sortland, Nordland, opened in August and will produce large quantities of dietary supplements and fish feed from the tiny zooplankton Calanus finmarchicus. This copepod accounts for most of the zooplankton in the Norwegian Sea ecosystem. Its large biomass and high protein and fat content give it commercial potential.

Zooca uses the raw material to produce oil, which is sold as a dietary supplement to consumers in the EU and the US. The company also produces protein products for the aquaculture industry across much of the world. Numerous studies have shown that the oil offers health benefits, and the company plans to invest even more in research going forward.

We have supported the company with grants, loans and advisory. In 2020, the company received an extraordinary innovation grant of NOK 7.5 million from us to develop a sustainable supply chain for products made from red feed.

'Our innovation grants are aimed at companies with ambitions for growth. The funding helps them carry out strong innovation projects that benefit society. Zooca's project meets our criteria and aligns with the Norwegian Government's bioeconomy strategy,' says Thomas Stien, financing adviser at our Arctic office.

'Our support strengthens the foundation for scaling up a new Norwegian biomarine value chain. The funding will help reduce risk as we bring our new factory online and successfully introduce our products in new countries and sales channels,' says Gunnar Rørstad, former CEO.

Rørstad has played a key role in developing the company founded in 2002 by Kurt Tande, Professor of Marine Biology. Nearly two decades of dedicated expertise, research and product development have made the world's first red feed factory a reality.

The goal is to increase production tenfold and expand internationally. In June 2021, the company raised NOK 100 million in new equity through a share issue with Broodstock Capital.

'There is significant potential for growth, and our plan is to work towards a stock market listing within one to two years. This initiative will create new opportunities for the fishing fleet, and we are working closely with technology developers to enable more people to harvest this unique resource,' says Zooca CEO Siv-Katrin Ramskjell.

The company will focus on Australia, China, India and South Korea in the coming years. These markets have shown considerable interest in Zooca's oil.

'But first, we need to overcome regulatory barriers to exports so that our products made from Calanus finmarchicus can gain approval in these markets. Innovation Norway plays an important role in our efforts and has helped us gain access to international markets. Without their support and confidence in us, this would have been a difficult and challenging undertaking,' says Ramskjell.

For products aimed at the aquaculture industry, the company will continue to pursue opportunities in markets with marine fish and shrimp farming, such as India and Indonesia.

Commercial harvesting of Calanus finmarchicus has sparked debate, with fishers in particular concerned that stocks of this vital food source for fish larvae will be severely depleted. They are also concerned about the amount of bycatch resulting from the harvesting.

'We are harvesting resources that belong to us all, and that demands responsibility at every level. Every aspect of harvesting Calanus finmarchicus has been thoroughly assessed, and the total annual quota reflects and follows the provisions of the Marine Resources Act and our management plan,' Ramskjell emphasises.

She adds that Zooca's work will create long-term opportunities for this value chain, benefiting everyone who wants to invest in these marine resources.

Read more about how Zooca presents its solution to international audiences on Business Norway.