US firm plans $100 mln expansion of sustainable aquaculture project in central Vietnam

Massachusetts-based Australis Aquaculture will sign an MoU with Khanh Hoa province to invest an additional $100 million to expand sustainable aquaculture operations in Van Phong Bay.

The information was mentioned in a White House statement issued following September 10 talks between U.S. President Joe Biden and Vietnam Party General Secretary Nguyen Phu Trong in Hanoi. The MoU was mentioned in the final chapter of the release concerning business-to-business ties.

Australis Aquaculture is well-known as the world’s largest barramundi farmer, capable of producing up to 10,000 tons in 2022, a major leap from its humble 30-ton production of 2008.

One of the earliest FDI investors in Van Phong Economic Zone, Australis has, with great support from the Khanh Hoa administration for over 15 years, spent almost $200 million to apply the most advanced marine aquaculture technology.

Barramundi (Lates calcarifer) or seabass was chosen because of its high economic and environmental efficiency that could probably rival salmon.

The combination of ocean overfishing and climate change has been intensifying risks to global food supply and marine economy prospects. Through an innovative approach to fish farming, processing and marketing, Australis says it has developed a sustainable model for large-scale ocean aquaculture that creates synergic benefits for workers and coastal communities, enhances global food security, protects wild fisheries, and builds climate resilience.

Josh Goldman, founder and CEO of Australis, said that the company has an ambitious goal to scale its production up to 50,000 tons per year.

Towards this the Asian Development Bank (ADB) in March this year signed an agreement with the company to invest in a portfolio of convertible notes valued at $15 million to help Australis expand its business and realize its vision.

An additional grant of $3 million from CIDF (Climate Innovation and Development Fund) will also be allocated to Australis. This amount will support the company’s Greener Grazing project, to develop commercial cultivation technologies for Asparagopsis taxiformis.

This can be a “game changer” in significantly reducing methane emissions (by up to 80%) in livestock and dairy industries, numerous studies have shown.

On the other hand, seaweed farming holds a great potential to mitigate ocean acidification and enhance the resilience of marine ecosystems to climate change, as well as capturing a huge volume of carbon dioxide.

In early April 2023, Australis was granted a new investment certificate at Khanh Hoa province's ceremony to announce its Van Phong Economic Zone master plan. Previously, in late 2021, the company was honored with the Award for Corporate Excellence (ACE) by U.S Secretary of State Antony Blinken for its achievements in “Climate Innovation.”