NL gov invests $30M in mega Placentia Bay salmon farm

News
3357

The Newfoundland and Labrador government is partnering with Grieg NL.

On Friday, the province revealed its stake in Grieg NL’s USD250 million Placentia Bay project to the sum of $30 million in repayable financial assistance. The equity investment is through its Aquaculture Capital Equity Program. It will complement a $10 million repayable federal investment through the Atlantic Canada Opportunities Agency’s Business Development Program (ACOA).

The Aquaculture Capital Equity Program objective is to help increase production of commercial aquaculture products in the province, from both hatcheries and marine sites, thereby increasing employment and spin-off opportunities in the processing, manufacturing, supply and service sectors, primarily in rural Newfoundland and Labrador, according to the program’s website. The ACOA supports projects that build the economies of Atlantic Canada’s communities.

“This equity investment from Government of Newfoundland and Labrador anchors Grieg NL’s significant investment of $210 million in the Project”, said Thomas Grieg, owner of Grieg NL in a press release. “Our financers and investors see this equity investment as a sign of confidence in the Project. Our company appreciates the Government’s aggressive approach to cultivate investment in aquaculture, and its determined approach to ensuring this equity investment also creates employment and business opportunities in Placentia Bay and throughout the province. We also appreciate the Province’s rigorous environmental policies leading to the acceptance of the Environmental Impact Statement last week”, added Mr. Grieg.

The project is set to create more than 800 jobs — 440 direct jobs at Grieg NL and its processing facilities, and about 380 jobs in affiliated sectors.

“Support for the project will flow over future years, based on the project delivering on job targets and satisfying environmental conditions,”said Newfoundland and Labrador Premier Dwight Ball according to CBC. “I’m pleased to say that our investment will be leveraged by the federal funding.”

Grieg NL said that the investment will help it to increase salmon production to 50,000 metric tonnes annually.