Progress 09/01/21 to 08/31/24
Outputs
Target Audience:The general target audience for this project was the shellfish culture industry. Broadly, most operators in the industry worldwide have some interest in hatchery production. While there are still many sectors of the industry, especially in still developing parts of the world that rely on wild capture seed, hatchery produced seed is critically important in areas that have poor natural recruitment making the prospect of collecting wild seed difficult, and in places where pathogens or disease not only reduce recruitment, but can significantly reduce survival. The advent of breeding programs which tailor local stocks to be resilient to endemic disease can significantly increase survival in these disease troubled ares, but require hatcheries to propagate these genetically improved lines. In these areas industries are often entirely dependent on these improved shellfish stocks and likewise, on hatcheries. Hatcheries represent significant investment for companies looking to secure a stable source of genetically resilient seed. While the equipment and staffing requirements already require a steep price tag, the prospect of purchasing or leasing suitable waterfront property normally push the capital investment of such facilities into the multi-millions of dollars, which then carries an operating cost likely in the neighborhood of $1 million per annum. For this reason it is often only the biggest companies that can afford such an investment which not only leads to relatively few hatcheries relative to the size of most regions, but sets up a monopoly of sorts where often only one to a few large companies control the flow of seed into any one region. This paradigm can not only lead to reduced access for smaller companies to an adequate seed supply, but also to seed shortages because of the lack of redundancy and diversity in the seed marketplace. Poor production even for short periods of time (which is quite common in shellfish hatchery production) and one or two of the relative few hatcheries in a region can quickly lead to seed shortages. The concept of a small, moveable, shellfish hatchery- or MOH, as tested in this project is a possible solution to the some of the potential difficulties of larger hatcheries as described above. The capital and operational investment is significantly less than that of a large brick and mortar facility allowing for more companies to enter the hatchery market and potentially secure some, or all of there seed demands. While the output is obviously less than a large brick and mortar facility it can be enough for one large to medium size company or a few smaller companies looking to bring their production in house. By allowing for more companies to have access to their own production, it is also increasing diversity in the seed market as more diverse production reduces the risk of seed shortages should any one hatchery have production troubles. The mobility of this type of facility is also targeted to industries prone to disruption by storms. A good example of this is the Gulf of Mexico region which has struggled to adequately supply seed to the developing oyster culture industry there in part because of the disruption that hurricanes have on hatchery facilities there, some of which have been hit multiple times per season. A facility that can be shut down and transported out of harms way, then moved back into operation affords a shorter disruption in production and significant savings in capitol loss which can be significant with storm events. More narrowly, another target audience is the shellfish hatchery industry. While this is a significantly smaller audience, it is a critical one due to the importance to the industry in suppling seed. The phase1 project that led to this phase 2 project focused not he miniaturization of the oyster setting process. In order for a mobile facility to be capable of setting oysters (and not just producing larvae) it was necessary to change the industry standard practice for taking oyster larvae through metamorphosis which as is, requires too large a footprint to accomplish in the small space of the MOH. It should be noted here that the systems employed in the MOH are capable of growing many species of shellfish larvae, but currently, only taking through metamorphosis, oysters. The development of the TCS (true-cultchless setting) system was the breakthrough needed to complete close the lifecycle in the small 8'x53' space utilized in these facilities. This technology represents a significant break-through in the oyster hatchery research space as it has several advantages over the industry standard of setting oyster larvae on micro culture. TCS has a footprint, water usage demand and algae usage demand all about 1/4 that of standard downwelling techniques using micro culture. These space and resource savings are significant and can afford any oyster hatchery savings and increased efficiencies when employed and are not subject only to use in a MOH. The addition of the TCS system to other substantially efficient production systems including flow through broodstock conditioning, flow-through high density larvae systems and hanging-bag continuous algae production combine to make, conceptually, a highly efficient hatchery system capable of proportionally high volume production given the relatively small space. Whether utilized in a MOH or employed piecemeal in a more traditional facility there is significant food-for-thought in this project for hatchery operators. ? Changes/Problems:The only major change to the scope of the project was the lack of operation of MOH-1 at the OSH facility. The construction period for MOH-1 and 2 took longer than expected, and the decision was made to focus on completion of MOH-1 and 2 so they could be transported to the partner sites and get them operating as soon as possible. After the construction phase, it became impossible to find the construction time to finish refit of MOH-1. That said, at the time of this Report, MOH-1 is nearly operational and is intended now to be reserved at OSH and used as a training grounds for mobile hatchery customers, or for other use as needed As mentioned previously, we utilized MOH-4 as a pseudo third location, the data from which added an important perspective to the project and for future consideration of commercialization of the concept. What opportunities for training and professional development has the project provided?By nature of the partnership relationship and the requirement to train partners and customers on the systems and protocols associated with the type of production used at OSH there has been significant opportunity for training and professional development of students and staff. At the onset of the project and prior to the completion of the MOH-4, OSH hosted graduate students and staff for a three day training of systems employed at OSH and also utilized in the MOHs. This way operators were able to experience these systems in full swing at a high level of production while learning from the highly skilled staff at OSH, operating these systems day to day. This gave operators a jump start in the learning curve associated with operating the MOH. There has also been several opportunity for training on-site at the MOH locations as Congrove made multiple trips to each MOH during the operational season to aide in troubleshooting. In the case of MOH-3, FSU was in the process of outfitting a new brick and mortar facility and several of the systems in the MOH were paralleled in the FSU hatchery. In particular FSU adopted similar bottle nursery and hanging bag algae systems that were utilized in the MOH demonstrating a tangible transfer of technology from the project to a partner university. Several open houses were put on by UGA and FSU during the project period where tours of the MOH were given to the public and interested members of the aquaculture community. While not specifically training or development, these types of events help to spread the word about aquaculture in general and why it is important to our coastal communities and food systems. Having the public see the hatchery side of things, which is often hidden to them, often induces additional curiosity of the aquaculture process and a larger understanding of how complex and innovative the industry is, which in OSH's experience can hep to garner support for shellfish aquaculture more broadly. While not occurring during the project period, at the time of this report MOH-2 is being moved from UGA to Mississippi to a site managed by the Mississippi Department of Marne Fisheries where it will serve as a practical training facility for students of a new aquaculture training program developed in partnership with University of Southern Mississippi. This will serve as a unique professional development opportunity for interested parties to work hands on in a hatchery and actually culture the animals without having to work in a hatchery or take the leap for their own company. ? How have the results been disseminated to communities of interest?OSH has reported on the true-cultchless setting system and the concept of the MOH at the Oyster South Scientific Symposium, but not about the results of this project specifically. Now that the project has concluded and the final report is complete, it is our intention to report the results of this project at the Virginia Aquaculture Conference, the Oyster South Scientific Symposium, and the Northeast Aquaculture Conference and Exposition. These three conferences will cover dissemination along most of the east coast, as well as the Gulf of Mexico. OSH maintains an active social media presence and website and will prepare a series of infographics for release over several weeks on social media summarizing the results and major lessons learned from this project. OSH will also write a blog for publishing on the website. What do you plan to do during the next reporting period to accomplish the goals?
Nothing Reported
Impacts
What was accomplished under these goals?
Production: Three locations, one each in Georgia, Florida, and Texas hosted MOH-2, MOH-3, and MOH-4 respectively and cumulatively produced approximately 330 million eyed oyster larvae and 19.2 million oyster seed over the project period. MOH-2 was operated by our partners at the University of Georgia and produced all 3 seasons: 2022-2024. In each year sequentially; 8, 13, and 12 larvae cultures were attempted. Each year resulted in modest production output in each season, producing 27 million (M), 29M, and 9M eyed larvae in each operational year. At the UGA location, some eyed larvae produced was set in UGA setting system and some in MOH setting systems, but the combined seed production from larvae produced in MOH was approximately 2.5M, 2M, and 1M in years 2022, 2023, and 2024 respectively. MOH-3 was operated by our partners at Florida State University and produced the first two seasons: 2022 and 2023, but had no output in 2024. In those two years sequentially; 6 and 9 larvae cultures were attempted, due to persistent water quality issues. The first year output was 8M eyed larvae with 193M eyed larvae in the second. No seed was produced in year 1. While no seed were produced in 2023, approximately 1M seed were produced in 2023. MOH-4 was operated by our customers- Palacios Marine Agriculture Research and produced in 2023 and 2024. In those two years sequentially; 11 and 13 larvae cultures were attempted. The first year output was 117M eyed larvae and 3.4M seed with 100M eyed larvae and 9.3M seed in the second. Objective One: Goal one of the project was to test the output capacity of the MOH concept in remote locations and with different operational crews. The "on-paper" design capacity of the facility was conservatively 5M eyed larvae per culture and 0.5M seed per culture with double that possible in "good" runs. Most of the production over the course of the project period was below that benchmark. The exception to this was MOH-4 in 2023 and 2024 which had an average larvae produced per culture of 10.6M and 7.7M respectively. Seed production was below benchmark in all cases except MOH-4 in 2024 which had an average seed per culture of 0.72M. There are two primary takeaways of note here. One, it is rare for any hatchery to hit their design capacity in the first or even the second year. Often times it takes some iteration and system or protocol adjustment to get a site figured out and the filtration systems tailored to the site. Not to mention that even seasoned hatcheries have poor production seasons at times. While production was not to design capacity at all sites in all years, there were examples of production at capacity (on average) over time. There were also some exceptional cultures well above benchmark with the best single culture producing 61M eyed larvae. The second takeaway comes from the relatively consistent production of MOH-4. Representingthe next generation of MOH build standard, this faciltiysuggests that the development of the MOH design is on the right track. Another important lesson learned with MOH-4 is the difference in available staff and attention that was afforded to MOH-4 compared to MOH-2 and 3.MOH-4 had twice the staff available and spent more than twice the man-hours per week in the MOH (see below) and the production output reflects that. MOH-4 is also operated by a private firm that has a certain requirement for production that often times forces the issue of making it work that is not always present with experiments in the university setting. Objective Two: The second goal of the project sought to evaluate the production cost and economic viability of the MOH concept. Each MOH location recorded time spent in operation of the MOH. Hatchery facilities can be very time intensive, not only because of the work involved, but because they require attention 7 days a week. The hours of work each day during normal hatchery operation in the MOH ranges from 2-8 and there was a range of 35-100 man hours across the three MOHs for which data was collected. MOH-2 and 3 were near the low end of the range with MOH-4 reporting as high as 100 man hours per week. MOH-4 was using 2-3 employees to achieve these hours whereas the other two MOHs were using 1-2 employees. As reported above MOH-2 and 3 never reached design capacity. With the limited production achieved these two facilities would not have been financial solvent in any year of their operation. It is assumed that qualified staff in the MOH would cost a minimum of $25 per hour. The labor cost for a single technician over a 6 month season at that rate would be $26,000 assuming a 40 hour work week. This does not include any company overhead, nor does it consider that it would be difficult to find and retain qualified staff for an ostensibly seasonal position. This labor cost however (assuming a generous seed sale price of $10/thousand for 1mm seed) would require the production of 2.6M seed just to cover labor. In other utilities, consumables, maintenance, there is likely another $12,000 cost over a 6 month season bringing the necessary seed production in excess of 3.8M to cover the operation cost, still excluding overhead, insurance, etc. While the design capacity of the facility allows for revenue sufficient for a theoretical break even, this was not achieved by MOH - 2 or 3. MOH-4 did achieve design capacity, exceeding it in 2024, but with a significantly higher labor cost than MOH-2 and 3. At 100 hours and given the same $25/hour labor rate the labor cost of a 6 month season would be a minimum of $65,000. Other operational costs would be similar, estimated at $12,000 for the season bringing the total to 71,000. MOH-4s second year seed production of 9.3M would be sufficient to cover these costs. It must be kept in mind however, that this doesincorporate any other costs from a company that may own and operate an MOH to include the investment cost in the MOH itself, company overhead, management, payroll tax, employee benefits, insurance, etc. In the case of MOH-4 it is also important to note that setting took place out of the MOH and represents an additional system and cost not accounted for here in this simple analysis. Conclusion?: While the two primary objectives of this project were satisfied, the results associated with these objectives are not particularly evocative of a business model that makes sense. It seems rather that OSH should be a builder, tather than operator of these facilities, working individually with interested parties to design a facility that works for their needs and is owned outright by the soliciting company and operated under their own purview with support available from OSH for commissioning and training and after if, and as, needed. MOH-4 was indeed an example of this model that has to date been relatively successful. At the time of this report, OSH has another current contract with USVI Department of Fish and Wildlife to construct a MOH that will be used as a teaching facility. This model allows the MOH technology to continue moving forward and for OSH to continue to innovate and equip interested parties with turn key, movable hatcheries.
Publications
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Progress 09/01/22 to 08/31/23
Outputs
Target Audience:The MOH concept specifically addresses a bottleneck in the farm-raised shellfish process. The audience that will benefit from this work is shellfish farmers (particularly, at least currently, oyster farmers), that want to increase and/ or stabilize their access to high quality seed. Of these farmers, those that will have the resources to access this type of technology will be primarily bigger companies, and cooperatives or organizations that pool resources, and therefore seed demand, that would be equal to the output of a MOH. This type of audience can be found at various levels to include local areas of high intensity production, regional areas with spatially diverse needs, or national or international audiences currently without any or adequate seed production infrastructure. Another audeience outside of the commerical shellfish production worl is those firms involved in the production of shellfishi for restoration purposes. It is possible that the MOH concept coudl help boldeter production when large restorataion products call for more shellfish production in an area than could be served by the current capacity of hatcherie sin that areas. In this case the mobility of the MOH would allow for capacity to be moved in an our, or form restoration location to restoration location as needed. Changes/Problems:The only major change in this year to the original design was the lack of particpation of MOH-1 at the OSH brick and mortar location. It is our aim to get this unit operating for 2024 after a no-cost extension. What opportunities for training and professional development has the project provided?Continous training was provided by OSH as requested by operators to improve and refine MOH operations. Often times issues with production came down to water quality and was outside of the hands of the operators and the capabilities offiltration systems on board the MOH to correct. How have the results been disseminated to communities of interest?
Nothing Reported
What do you plan to do during the next reporting period to accomplish the goals?We plan to request a no cost extension to collect one more year of data that would include operation of MOH-1 and MOH-4. The same data collected in years 1 and 2 would be collected in this final year.
Impacts
What was accomplished under these goals?
In the 2023 season, MOH-2 and MOH-3 operated in their second year with both units accomplishing some production albeit under target levels. MOH-2, operating in Georgia attemopted 13 cultures and produced a total of 29M eyed larvae adn appriximately 2M seed. MOH-3, operating in Florida attempted 9 cultures and prouced a total of 40M eyed larvae and 1M seed. A third unit. MOH-4 was commisioned and put into opeartion in 2023 in Texas. This unit was a build commisioned by a cusomer, but who has aggreed to participate in the project and alloow for data collection on production and labor. MOH-4 attempted 11 cultures and produced a total of 117M eyed larvae and 3.4M seed. Target operational capcity for the MOHs is approximately 5M eyed larvae and 0.5M seed per culture with double that possible in "good" runs. The design of MOH-4 is different, with a focus on larvae production andno in house setting capacity, it has a design of 10M eyed larvae per culture with 20M possible on "good" runs. MOH-2 an average eyed larvae per cultur rate of 4.4, close to the 5M target, MOH-3 was less with a rate of only 2.2. MOH-4 was higher, with a rate of 10.6 reaching their target capacity on average for the season. Seed production was below target ratesat all locations with 2.1M produced atMOH-2, a rate of 0.16M/ culrture;1M at MOH-3, a rate of 0.11M/ culture;and 3.4 at MOH-4, a rate of 0.31M/culture.
Publications
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Progress 09/01/21 to 08/31/22
Outputs
Target Audience:The MOH concept specifically addressesa bottleneck in the farm-raised shellfish process. The audience that will benefit from this work is shellfish farmers (particularly, at least currently, oyster farmers), that want to increase and/ or stabilize their access to high quality seed. Of these farmers, those that will have the resources to access this type of technology will be primarily bigger companies, and cooperatives or organizations that pool resources, and therefore seed demand, that would be equal to the output of a MOH. This type of audience can be found at various levels to include local areas of high intensity production, regional areas with spatially diverse needs, or national or international audiences currently without any or adequate seed production infrastructure. Another audeience outside of the commerical shellfish production worl is those firms involved in the production of shellfishi for restoration purposes. It is possible that the MOH concept coudl help boldeter production when large restorataion products call for more shellfish production in an area than could be served by the current capacity of hatcherie sin that areas. In this case the mobility of the MOH would allow for capacity to be moved in an our, or form restoration location to restoration location as needed. Changes/Problems:The only major change we have had to make thus far in the project was to operate the first production season with only two of the MOH units in operation instead of the planned three. Construction of three of these units simultaneously within the amount of time available and with primary construction done exclusively in house proved to be more than we were able to accommodate. Construction of the unfinished unit will be finished in time for the 2023 season and all 3 MOH units will be in operation for this second production season. What opportunities for training and professional development has the project provided?The MOHs provide excellent opportunities for their hosts to train staff in commercial hatchery technology, particularly in live algae culture. Neither the Georgia or Florida hatcheries culture live algae regularly and the opportunity to operate these facilities has provided extensive capability to train staff on such systems. In fact UGA has inquired about setting up a similar algae production system for their own hatchery. The next season will provide further opportunity for more professional development. How have the results been disseminated to communities of interest?Results have not yet been disseminated to interested communities, but at teh culmination of the project we plan to offer up production and expense data to all interested parties and start "selling" the idea of the MOH in a more commerical manner, that is to say the MOH concept will be open for busines to interested parties. What do you plan to do during the next reporting period to accomplish the goals?The next reporting period will include the 2023 production season. We have had planning meetings with both FSU and UGA host operating teams and have a plan to start larvae production early in the season. We are hopeful that this will lead to more consistent larvae culture conditions. Additionally we are in the process of finishing the retrofit of the original MOH so that it will be available for operation at Oyster Seed Holdings. In all three locations we will have a 6-8 week spawning season in the spring starting around late February or early march. By end of May when it starts getting hot in the southern locations we will pause operations until a 4 week fall spawning season later in August or September.
Impacts
What was accomplished under these goals?
In the first year of this project we have accomplished construction and transport to remote operation locations, the two new MOH units. MOH2 was completed and transported to UGA's marine lab in Savannah, GA and MOH3 was completed and transported to FSU's coastal and marine lab in St Teresa Florida. While not specifically written in the objectives of this project, the first major goal was to construct the MOH units. OSH, at the time, was on its second iteration of the prototype MOH, and had a design for the the Beta version constructed here, but none had been constructed before this project. These two units were constructed and we can now report that the seawater filtration systems, seawater heating systems, algae culture systems are all working as designed. This was an unwritten, but very important objective that had to be accomplished first to allow for the research to take place. Operating costs were captured by tracking technician time in both MOHs operating during the 2022 season. Power consumption will be estimated and included in the financial analysis at the end of this project. Other costs like licensing and permitting will be considered, but these costs will vary with operation location of any one particular MOH. No seed were produced from either of the MOH units in this first season. Water quality issues in both locations plagues larvae culture with no cultured reaching maturity in Florida, and once a few cultures reaching maturity in Georgia. While this is a frustrating result for year one, we have made some filtration system changes for year 2 and will be starting much earlier in the season when water quality is often better and hope that this will allow for better larvae culture performance. Data and further information from both operating season will be presented in the interim report.
Publications
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