CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...

 
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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
CERMAQ CANADA LTD.
          Request for an Aquaculture Option to Lease

                                       Submitted to:

                                             Fisheries and Aquaculture
                                             1575 Lake Road
                                             Shelburne, Nova Scotia
                                             B0T 1W0

203-919 Island Highway Campbell River, BC V9W 2C2 250-286-0022           February 2019
CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
Cermaq Canada Request for an Option to Lease
                        to Nova Scotia Fisheries and Aquaculture

                                         Table of Contents

         i.     Introduction
        ii.     Who we are - Cermaq Canada
         iii.   Proponent and Company Information
         iv.    Pre-Request Meeting
         1.     Proposed Aquaculture Development
         2.     Maps of Interest Areas
         3.     Proposed Development
         4.     Benefits of the Proposed Development
         5.     Current Aquaculture Activities in Nova Scotia
         6.     Knowledge and Experience
         7.     Market Plan
         8.     Financial Capacity
         9.     Public Engagement
         10.    Other Information

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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
i. Introduction
Hello Nova Scotia.

A foreword by David Kiemele, Managing Director, Cermaq Canada
In the following options paper, you are going to read a lot about our company, what we do, how we do
it, and how we think we could add value to the Nova Scotian seafood story.

However, we are first and foremost, passionate salmon farmers who care about the communities in
which we live and work, the health and well-being of the environment and the planet, and being able to
provide healthy, sustainable protein for generations to come.

Wherever we operate, we connect and communicate with local people to build a sense of community
around the work we do. By sharing and respecting knowledge that has long been part of local cultures,
we take a natural approach to improving the future. We know that by supporting employees and
fostering their growth and development, we all become stronger. We believe that by creating strong
people, we support the strengthening of families, communities and the economy. This then supports
our work to help protect the iconic wild salmon, create enhancement hatcheries, support habitat and
beach clean-up work and clean the ocean, and provide delicious salmon for families.

I have been working in the aquaculture industry for over two decades, and every year we see new
technology and research, which helps to improve our farming practices. Between my executive team
and myself, we have well over 100-years of collective experience working directly in Atlantic salmon
farming, fish health, research, technology and community engagement and support. We are salmon
experts, and we are excited to bring this experience and strength to Nova Scotia to establish successful
salmon farms, and to help provide support and guidance for enhancement hatcheries looking to support
the return of the local Atlantic salmon populations, and grow the local economy.

We are the first patron sponsor of the United Nations Compact Action Platform for Sustainable Ocean
Business, and are also working to support the UN’s Sustainable Development Goals (SDGs) through our
business modelling and practices.

And we grow really delicious, sustainable and healthy salmon.
We look forward to working with the province and building relationships as we work through the
feasibility of our proposed expansion into Nova Scotia.

Request for an Aquaculture Option to Lease                                               February 2019
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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
If you have any questions, please reach out to us by phone 250-
286-0022, or email questions@cermaq.com. I would be happy to
talk about us as an organization, our potential expansion plans,
and why I think we could add value to Nova Scotia.

Thank you –

David Kiemele
Managing Director

ii. Who we are – Cermaq Canada
From egg to plate and everything in-between - we are your salmon farmer and champion for wild.

Cermaq is Canada`s West Coast’s second largest salmon farming company. Our head office is located in
Campbell River, a small town on Northern Vancouver Island.

We have 27 salmon farm licenses on both the east and west coast on Vancouver Island, four hatcheries
and a processing plant in Tofino. We also contract process with Brown’s Bay Packing just north of
Campbell River.
Annually, Cermaq Canada produces over 22,000 metric tons of healthy, sustainable salmon.

Request for an Aquaculture Option to Lease                                             February 2019
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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
We are part of Cermaq Global, headquartered in Oslo, Norway, with operations in Norway, Chile and
 Canada.

 As a global organization, we are aware of the challenges being
 faced around the world from climate change, ocean debris and
 micro-plastics, declining natural fish stocks, and loss of arable
 lands for traditional protein farming. We are supporting the
 United Nations and its work to combat these issues and are
 proud members of the United Nations Global Compact Action
 Platform on Sustainable Ocean Business.

 Cermaq is owned by Mitsubishi, and are part of the
 organization’s Fresh Foods Product division.

Request for an Aquaculture Option to Lease                                            February 2019
to Nova Scotia Fisheries and Aquaculture                                                     page 5
CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
iii. Proponent and Company Information
Proponent Information
       Proponent Name: Cermaq Canada Ltd.

       Phone: 250-286-0022

       Fax Number: 250-286-0042

       Email Address: questions@cermaq.com

       Mailing Address: 203-919 Island Highway
                         Campbell River, BC
                         V9W 2C2

iv. Pre- Request Meeting

Request for an Aquaculture Option to Lease       February 2019
to Nova Scotia Fisheries and Aquaculture                page 6
CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
Before submitting this request, you MUST participate in a pre-request meeting with the Manager of
Aquaculture Development, or an appropriate designate.

To arrange your pre-request meeting please call (902) 875-7439.

Once held, please indicate the date of your meeting.

        Date of Meeting: February 22, 2019

        Department representative Cermaq Canada met with:

               Bruce Hancock, Director of Aquaculture Division

1. Proposed Aquaculture Development

1. What is the nature of the proposed aquaculture development?

                  Marine Aquaculture - Finfish

                  Marine Aquaculture - Shellfish

                  Marine Aquaculture - Plant

                  Marine Aquaculture - Other

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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
2. Maps of Interest Areas
Attach a map that clearly identifies the body of water and the boundaries of the proposed geographic
area. (You are expected to work with the Department’s GIS Specialist to generate a map that defines the
area under consideration.

In evaluating this section, the Department will review information such as: other licensed aquaculture
activities in the area, and any environmental or physical limitations that would preclude the proposed
aquaculture activities from taking place.

    Cermaq Canada have the following areas of interest:

           Map A. Cermaq - Chedabucto Bay
           Map B. Cermaq - Bay of Rocks
           Map C. Cermaq - South Guysborough
           Map D. Cermaq - St. Marys Bay

    The attached maps identify the areas of interest within the red lines.

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CERMAQ CANADA LTD. Request for an Aquaculture Option to Lease - Submitted to: Fisheries and Aquaculture 1575 Lake Road Shelburne, Nova Scotia B0T ...
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3. Proposed Development
Attach a description of the proposed development. This should include but not be limited to: the species
(including strain, if relevant), method of cultivation, stage(s) to be cultivated, scale of the operation (for
finfish: maximum biomass, maximum densities and expected annual production in tons, for shellfish:
site size in HA and expected annual harvest either in number or weight in kg), anticipated date of
stocking, and any other information deemed necessary to describe the development.

In evaluating this section, the Department will review information such as: the biological feasibility of the
proposed species and cultivation method, compatibility and technical feasibility of the proposed
production scale with the requested area.

The table below outlines Cermaq Canada’s development plan.

  Species:                            Atlantic Salmon
  Strain:                             Local strain to be sought
  Stages:                             Egg to Harvest
  Broodstock:                         Domestic to be determined
  Freshwater Cultivation              On land recirculation facilities
  Method:
  Marine Cultivation Method:          120 to 160m polar circle pens with K-grid

  Annual Production:                  20,000MT
  Maximum Density:                    20kg/m3 will be the absolute maximum, however this number could
                                      be lower and will be based on specific site capacity
  Maximum Tonnage:                    3,500MT per site
  Anticipated Date of Stocking:       2023
  Vessels:                            15m to 24m work vessels per area. A 12m work vessel per site.
  Feed Barges:                        Concrete or steel feeding barges with a capacity of 440 to 660 Tonne
                                      silo barges
  Underwater Lighting:                LED lights – site and production stage specific
  On land infrastructure:             Hatcheries, Processing plants, works yards, wharfs and docks, offices,
                                      potential staff accommodation

Request for an Aquaculture Option to Lease                                                    February 2019
to Nova Scotia Fisheries and Aquaculture                                                            page 13
Our salmon are cared for from egg to harvest by a team of dedicated professionals, passionate farmers
and when the time comes for harvest, humane harvesting techniques that result in beautiful, fresh
salmon that is able to feed the world for generations to come.

Breeding. The eggs are harvested from broodstock fish, selected for qualities such as strong health, fast
growth and low early maturation.

On shore. Salmon spend the first part of their life in fresh water. From egg to smolt, the fish spends
about 14 months in a land based hatchery. After hatching, the salmon lives in fresh water tanks on land.

Seawater. Smolts are then entered into sea water to grow to full size (4-6 kg), for a period of 14-20
months. The fish has plenty of room, taking up to 2.5% of the pen volume. The location and use of the
sites follow strict governmental regulations and require favourable environmental conditions.

Harvesting. Harvesting is conducted with a strict focus on animal welfare and quality. The harvest
process is quick and it only takes hours until the fish is on its way to the customer.

Sales and Logistics. The sales office supply salmon to our customers 365 days a year. The fish is
transported by sea, air and land.

Nutritious and healthy meal. The final step is a healthy and nutritious meal served to families all over the
globe. Cermaq globally provides the world with 2.5 million daily salmon meals.

Request for an Aquaculture Option to Lease                                                  February 2019
to Nova Scotia Fisheries and Aquaculture                                                          page 14
4. Benefits of the Proposed Development
Attach a description of the benefits of the proposed development to the community in the area being
requested as well as to the Province. These should include socio-economic impacts such as the
anticipated direct local jobs created, use of local suppliers, potential spin off industries, complement to
other business development in the community and Province, other relevant information to demonstrate
the impacts to and scale of benefits.
In evaluating this section, the Department will review information such as: the number of fulltime, part
time, and seasonal employees directly related to the proposed development, sources of labour, types of
goods and services, predicted volumes of goods and services, hatchery or seed source, location of
processing of product, source and volume of feed, any other potential benefits.

Cermaq Canada is working hard to become an employer of choice, as we believe that our employees are
the secret to our success. We believe in creating a supportive, dynamic and fun culture – where
everyone is encouraged and provided with the tools, training and skills to grow and develop within the
company.

We have opportunities for people from all walks of life - all we ask is that you have a great attitude and a
love for the ocean, the environment, and most of all, our fish.

We provide on-the-job training as well as skill and knowledge development opportunities. We need
employees with all types of education, background, experience and talents to help us create our farms
and operations. We anticipate creating between 300 and 350 new jobs in the coastal communities near
our identified potential sites.

We also have an important role to play when it comes to improving the health of our oceans, supporting
wild salmon populations, fighting climate change and providing families with safe, healthy and nutritious
salmon for generations to come. We believe that with farmed salmon – you can have your salmon, and
eat it too. By choosing farmed salmon, you are helping to relieve the pressure wild populations, helping
to ensure their continued survival, and helping to support Cermaq’s research, projects and partnerships
to support and enhance wild salmon populations

We support the United Nations Sustainable Development Goals (SDGs) and were the first organization
to join the UNs Action Platform on Sustainable Ocean Business.

        Table 1. Anticipated direct full-time local jobs created

        Table 2. Use of local suppliers and spin offs

        Table 3. Economic and social impacts.

        Table 4. We spend where we work.

        Table 5. Adding value through direct and indirect spending

Request for an Aquaculture Option to Lease                                                  February 2019
to Nova Scotia Fisheries and Aquaculture                                                          page 15
Table 1. Anticipated direct full-time local jobs created

 Farm Sites                                     6 - Full time employees per active site
 Maintenance                                    2 or more per region
 Fish Health Technician:                        2 or more per region
 Fish Health Manager                            1
 Fish Health Coordinator                        1
                                                - a 15m work boat requires a minimum of 3 people
 Boat Operators
                                                - a 24m work boat requires a minimum of 4 people
 Divers                                         1 crew of 4 divers per area
 Net Washers                                    a 15m work boat requires a minimum of 3 people per area
 Environmental Contractors                      2 contractors and 2 field staff per area
 Hatcheries / Broodstock Facilities             12 full time people per hatchery
 Processing Plant                               35 employees
 Including - Administration, Information
 Technology (IT), Accounting, Production,
                                                30 employees
 Human Resources, Sales, Environmental,
 Community Engagement and Biologists

 Table 2. Use of local suppliers, potential spin off industries, complement to other business
 development in the community and Province

 Crew bus                             1 per area, 1 per processing plant
 Freight service trucks               (ie: smolt trucking, general freight, feed, nets, product, etc.)
                                      (harvesting, treatments, live fish transfers, etc.): 3 vessels with a 5 -7
 Well boats / boat
                                      person crew
 Suppliers
 Net lofts                            all netting material, repair and washing services
 Aquaculture support                  feeding systems, equipment maintenance, lights, etc
 Feed                                 manufacture and delivery via boat or truck - 26,000MT per year
 Marine Suppliers                     cage construction, anchoring hardware, rope, etc.
 Processed product packaging          boxes, pallets, liners, etc.
 General supplies                     general hardware, lubricants, etc
 Grocery stores
 Fuel suppliers
 Staff housing
 Staff support services               Technical certification training, etc
 Ticketed tradespersons               welders, electricians, plumbers, heavy duty mechanics, etc.
 Fish Health & Environmental
                                      Diagnostic services and supplies
 Laboratories

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 16
Table 3. Economic and social impacts. The good and the great.
We are committed to driving economic development and adding value to where we work and live.

             Average annual salary by community, compared to the average
              Cermaq employee base salary, and salary including benefits.
 $70,000                                                                                         $65,000
                                                                                  $58,000
 $60,000                                                  $52,171
 $50,000      $45,021        $45,917
                                            $41,123                    $38,645
 $40,000
 $30,000
 $20,000
 $10,000
      $0
           Campbell River   Port Alberni   Port Hardy   Port McNeill   Tofino      Cermaq       Cermaq
                                                                                  employee     employee
                                                                                             w/benefits incl.

Due to the nature of our business, we often live and work in rural and remote coastal communities.
Within our business model, we build the required infrastructure in these regions so we can grow our
eggs and smolts, farm in the ocean and eventually, harvest and process all within close proximity.
It makes good business sense and help us to provide the healthiest and freshest fish possible to the
markets if our required infrastructure - hatcheries, farms, offices and plants - are all within a short boat
trip or drive away. In order for our operations to be economically sustainable, we need to have a large
enough farming operation to support this required infrastructure. This translates into having about 20
farm licenses (not all will be farmed at the same time), two hatcheries and a processing plant.
We have between 300 and 350 full-time employees, depending on the staffing levels required at the
processing plants, and have an average annual payroll of $13.2 million with an additional $4.6 million
provided to employees in paid benefits.
The average annual salary of a Cermaq employee is just under $59,000, if benefits are included, the
average annual salary rises to almost $65,000.

Request for an Aquaculture Option to Lease                                                    February 2019
to Nova Scotia Fisheries and Aquaculture                                                            page 17
Table 4. We spend where we work
Since 2015, Cermaq has spent over $625 million with vendors, suppliers, consultants, equipment,
utilities, taxes, benefits, and maintenance. When possible, local suppliers, vendors and service providers
are used which helps to build and support a healthy, local economy.

Table 5. Adding Value through direct and indirect spending
Aside from providing thousands of direct employment opportunities, salmon farming supports
thousands of indirect jobs and supports over 3,000 companies such as suppliers, vendors and service
providers like hotel workers, car dealerships, health care employees, teachers and accountants.

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 18
We invest in communities and look for ways to add value.

In 2018, we contributed through donations and
in-kind support to the communities in which we
live and work.
We look for ways to add value to the
community by supporting existing passions and
programs, or in some cases, adding to or
improving the community’s infrastructure.
Strategic priority funding is defined as a
program, project or initiative, which helps to
further awareness and support for aquaculture,
or a project or initiative which
supports our sustainability work.

We share knowledge and engage in partnerships with like-minded Governments, organizations and
individuals to find solutions to common challenges.

We are transparent in our work to create trust, ensure traceability and be
accountable to our stakeholders.

We work continuously to create sustainable value through operational excellence, research and
innovation.

What can sustainable salmon farming do?
The United Nations has stated that a profound change of the global food and agriculture system is needed to
nourish the current estimated 765 million hungry people around the world, with an additional two billion hungry
people worldwide by 2050.

The former UN Secretary General Ban Ki-Moon stated during the 2018 Aquavision conference, “Fish farming is
central to being able to cope with climate change, ensure social responsibility, and meet sustainability goals while
reducing environmental impact.”

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 19
What will the world look like in 2050?

 Salmon farming has one of the smallest carbon footprints of all protein farming methods, and it also
 one of the most sustainable due to lower requirements for energy, arable land bases, efficient feed
 conversion rates and minimal fresh water requirements.

 Moving forward, salmon farming will have a significant role to play on proving future generations with
 a clean, healthy and sustainable protein source.

Request for an Aquaculture Option to Lease                                               February 2019
to Nova Scotia Fisheries and Aquaculture                                                       page 20
Supporting the UN’s Sustainable Development Goals and Action Platform.

Request for an Aquaculture Option to Lease                         February 2019
to Nova Scotia Fisheries and Aquaculture                                 page 21
What does a salmon farmer, the United Nations and a person who eats farmed salmon all have in common? We all
care about the future of the planet, and are doing things within our area of influence to help create a better future
for our children.

Not seeing the connection?
Well, as salmon farmers we know that we produce one of the most delicious, healthy, nutritious and
environmentally sustainable sources of protein. Our operations don’t require access to arable farmlands, use very
little fresh water and have low energy requirements. We also partner with organizations to carry out wild salmon
enhancement and protection initiatives - helping to support this iconic species.
By eating farmed salmon, you are supporting a low-carbon footprint organization, and helping to reduce the
demand on wild salmon stocks. In essence – you are having your salmon, and eating it too.
The United Nations is well known for its efforts to improve conditions world wide – including their recently launched
Sustainable Development Goals (SDGs) and Action Platform for Sustainable Ocean Business.
                                                               Cermaq was the first company to join the Action
                                                               Platform on Sustainable Ocean Business and while we
                                                               support all of the SDGs, we feel we can help influence:
                                                               SDG 2 – No Hunger; SDG 8 Good Jobs and Economic
                                                               Growth; SDG 12 - Responsible Consumption; SDG 13 –
                                                               Climate Action; and in particular, SDG 14 – Life Under
                                                               Water.

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 22
How Cermaq supports the UN’s SDGs
 United Nations SDGs                                                 Cermaq Commitment
                       SDG 2 seeks to achieve food security and
                       find sustainable solutions to end hunger in
                       all its forms by 2030. The aim is to ensure
                       that everyone – regardless where they live
                       - has enough good-quality food to lead a
                       healthy life.

                       SDG 8 supports sustained and inclusive
                       economic growth, and is a prerequisite for
                       sustainable development which can
                       contribute to improved livelihoods for
                       people around the world. Economic
                       growth can lead to new and better
                       employment opportunities and provide
                       greater economic security for all.

                       DG 12 supports sustainable growth and
                       development while minimizing the natural
                       resources and toxic materials used, and
                       the waste and pollutants generated,
                       throughout the entire production and
                       consumption process.

                       SDG 13 acknowledges that climate change
                       presents the single biggest threat to
                       development, and its widespread,
                       unprecedented effects disproportionately
                       burden the poorest and the most
                       vulnerable.

                       SDG 14 recognizes that healthy oceans,
                       seas and other marine resources are
                       essential to human well-being and social
                       and economic development worldwide.

Request for an Aquaculture Option to Lease                                         February 2019
to Nova Scotia Fisheries and Aquaculture                                                 page 23
Our business strategy is all about respect.
We farm our fish in some of the most beautiful places in the world. The mix of cold, clear and crisp ocean waters and
quiet isolation is what makes our fish so healthy, happy and delicious. Maintaining this environment, and all that
entails, is critical to maintaining our business operations. Knowing this, we are working hard to protect and enhance
our surroundings, including the fish and animals who live in it.

 Respecting nature. We are all linked.
                   One of our company values is long-term vision. We rely on healthy, thriving oceans and
                   an abundant marine ecosystem to produce our healthy salmon.
                   If the oceans suffer, our business, the people we provide food for and the livelihood of
                   our employees will suffer. Ecosystem integrity and access to marine resources are
                   necessary for us to grow our salmon and provide the world with healthy, fresh and
                   nutritious salmon
                   We work through partnerships with local associations and groups, including many First
                   Nations communities and organizations, to support ocean clean-up projects, shoreline
                   and intertidal cleanup and restoration, as well as support for wild salmon through
                   habitat restoration and hatchery enhancement projects.

 Respecting the basic human right to access healthy, nutritious foods.
                   Salmon is one of natures “super-foods.” This amazing fish is rich in minerals, vitamins,
                   protein and healthy Omega-3 oils. Salmon has been shown to reduce the risk for
                   cardiovascular disease and reduce the risk for a large number of other health risks such
                   as improving bone health, controlling blood pressure and reducing the risk for certain
                   types of cancers. Salmon has also been linked to healthy weight and a decreased
                   chance of Type 2 Diabetes.

                   Natural fish stocks and traditional fishing is not able to meet the growing demand for
                   sustainable protein. Our farmed salmon is a sustainable way to provide the world with
                   access to healthy, nutritious and delicious salmon for generations to come.

 Responsible production and the value chain approach.
                   Current farming and food production techniques will not be adequate to supply our
                   growing global demand for fresh food, water and energy. A major shift in the global
                   food supply system is going to be required – and farming our oceans is going to have a
                   large role to play in that.

Request for an Aquaculture Option to Lease                                                February 2019
to Nova Scotia Fisheries and Aquaculture                                                        page 24
We are actively working to meet environmental requirements and operate in a socially
                  responsible manner. To lower our environmental footprint, we work to optimize our
                  value chain – defined as the flow of our business, from egg to plate - by identifying,
                  managing and monitoring risk. Aquaculture Stewardship Council (ASC), Best
                  Aquaculture Practices (BAP), and Global G.A.P are independent third-party
                  certifications, which help drive our commitment to continuous improvement.

 Respect for the needs of the planet. And its inhabitants.
                  The production of food is a major part of our climate challenge and contributes to a
                  significant amount of global greenhouse gas (GHG) emissions. Moving forward, how
                  we farm and source our food will need to dramatically change. With sustianable
                  aquaculture, we can continue to provide sustainable and healthy salmon, while helping
                  reduce the overall pressures on the planet.

                  Cermaq has developed a Carbon and Energy Management Program for all its
                  operations globally, with the objective of reducing GHG emissions and energy use,
                  enhance social lisence to operate and lower operating costs. Being at the forefront of
                  sustainable aquaculture, salmon farming has the potential to drive innovation in
                  climate-friendly seafood and healthy protein choices going forward.

 Providing opportunity and respecting our employees, the communities where we operate and
 First Nations.
                  Salmon farming contributes to rural jobs and creates indirect benefits through
                  spending, wages and opportunity (called the value chain). According to the UN,
                  fisheries and aquaculture support the livelihoods of 12 percent of the world’s
                  population. Approximately 60 million people are directly employed by fishing and
                  aquaculture, with an additional 140 million people employed through the value chain.

                  Cermaq contributes to local value creation in many ways. We provide jobs, we
                  purchase and use local businesses, contractors and suppliers, we support community
                  events and initiatives through sponsorship, in-kind and participation. We also provide
                  education and learning opportunities through on the job training and specialized
                  programs for youth and communities.

Request for an Aquaculture Option to Lease                                               February 2019
to Nova Scotia Fisheries and Aquaculture                                                       page 25
Partnerships
We work closely with all of our strategic partners to ensure we are producing sustainable and high-quality salmon in
a responsible manner so that we can provide healthy, nutritious and delicious salmon for generations to come.

5. Current Aquaculture Activities in Nova Scotia

Request for an Aquaculture Option to Lease                                               February 2019
to Nova Scotia Fisheries and Aquaculture                                                       page 26
Attach a description of your current aquaculture activities in Nova Scotia, including the level of
production for each lease you hold, the reasons for the production levels (if they are not maximized),
and the contributions to the Nova Scotian economy associated with the operation(s).

In evaluating this section, the Department will review information such as: consistency with the
information the Department has on file for the operator and their current aquaculture activities; and the
level of site utilization on existing aquaculture sites.

    Cermaq Canada does not currently have aquaculture activities in Nova Scotia.

6. Knowledge and Experience

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 27
Attach description of your relevant knowledge and experience. This can include education, business
experience, aquaculture experience, previous aquaculture compliance history, previous experience in
community engagement, proposed management team (if known), other relevant information to
demonstrate the technical, community engagement and business skills available to execute the
proposed development.

In evaluating this section, the Department will review information such as: the relevance of experience to
the proposed aquaculture development, years of relevant experience, and past operational success.

The Cermaq Canada team have decades of local and international experience; we are salmon experts.
Our broad scope of experience ranges from technical, environmental, community engagement and
business skills.

        Cermaq Canada’s Executive Team

Third-party relationships and certifications.

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 28
Cermaq Canada works with several independent third-party certification organizations and complies
with stringent regulations and criteria to ensure we are producing our salmon in a sustainable, safe and
ethical manner. We currently hold certifications through the Aquaculture Stewardship Council (ASC), the
Best Aquaculture Practices (BAP), and through the Occupational Safety Standard of Excellent (OSSE).

Certified farms sites are regularly audited to ensure these tough standards continue to be met. Visit the
ASC website at: https://www.asc-aqua.org/ to find out more.

You can learn more about Best Aquaculture Practices and the certification process on their website at:
https://www.bapcertification.org/

Find out more about OSSE and the certification process on their website at:
http://www.safetyalliancebc.ca/osse/

We are the supporters of the United Nations Sustainable Development Goals (SDGs) and have been
named the most transparent seafood company (Seafood Intelligence Transparency Benchmark 2017).

7. Market Plan

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 29
Attach a description of your basic market plan. For example: what is the product you will be selling
(rough/whole, processed, value-added, etc.); what is the anticipated price; who is your target
market; how will you distribute your product; and how will you promote your product?

In evaluating this section, the Department will review information such as: is there evidence of a
plan to sell, promote, and distribute the product; is this plan reasonable?

Cermaq Canada will be selling fresh, whole, head on Atlantic salmon initially, with the potential for
further value adding being done at a later date. It will depend on market demand and processing
capacity.

       Marketing plan removed due to commercial sensitivity.

Please refer to the Cermaq Canada Corporate Brochure and Cermaq Canada Sustainability Brochure for
additional information:

  Cermaq Canada’s 2018 Sustainability report.

  Cermaq’s sustainability reports and annual reports
  can be viewed at the following link:

  https://www.cermaq.com/wps/wcm/connect/cerma
  q/cermaq/our-company/annual-report/

Request for an Aquaculture Option to Lease                                                  February 2019
to Nova Scotia Fisheries and Aquaculture                                                          page 30
Cermaq Canada’s corporate brochure.

  This brochure can be viewed at the following link:
  https://www.cermaq.com/wps/wcm/connect/295ad
  532-64a3-4161-9b3b-
  38a6eb5eef3d/Cermaq+Brochure.pdf?MOD=AJPERES
  &CONVERT_TO=url&CACHEID=ROOTWORKSPACE295
  ad532-64a3-4161-9b3b-38a6eb5eef3d

Request for an Aquaculture Option to Lease             February 2019
to Nova Scotia Fisheries and Aquaculture                     page 31
8. Financial Capacity
Attach a description of your financial ability to carry out the proposed development. This could include
confirmed and expected financial resources for this development; top line revenues and expenses, and
EBITDA three years back (if applicable) and one production cycle forward; strategic relationships that
can assist with the viability of the proposed development; other relevant information to demonstrate
the financial ability to execute the proposed development.

In evaluating this section, the Department will review information such as: are the financial resources
adequate for the proposed production level identified, and are the sources of financing identified debt or
equity based, and are they secure.

       Commercially confidential

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 32
9. Public Engagement
Attach a description of your plans for engaging with the public during the scoping period, should you be
successful in obtaining an aquaculture option to lease. Include also a description of how you will remain
engaged with the public throughout the term of a lease, should you be successful in your application.

In evaluating the section, the Department will review information such as: who will you engage with;
how will information be provided to the public meeting outlined in regulation that the Option Holder
must hold; how you will receive information from the public; and what is the relevant experience of the
lead on public engagement during the scoping.

Cermaq’s approach to public engagement
Cermaq has started to reach out to communities and associations in the identified areas, and plans to
launch an extensive public engagement program to determine and address concerns raised by
community, fishermen, associations and special interest groups.

As an organization, we believe in transparency, accountability and conducting open, two-way
engagement opportunities. If approved, the next stage of the project will involve a public
announcement of our intent to investigate the possibility of expanding our operations into Nova Scotia.

Following the announcement, Cermaq will immediately launch thorough engagement with local
communities, fishermen, associations and governments, along with further investigations into possible
site viability.

Through engagement, Cermaq plans to identify biophysical and social impacts, as well look for
opportunities to add value and provide benefits to other industry, communities and associations.

Cermaq will be establishing an office in the Guysborough region, which will serve as our main
consultation office, and plan to open satellite locations in those regions in which we have identified
possible farm opportunities. After gathering advice on the best method of engagement, we will be
hosting open houses in the summer through to late fall, and will be aiming to engage with communities,
fishermen, associations, local municipalities and special interest groups to gather feedback and look for
ways to address concerns and build shared value.

We do not have a target or end-date for our consultation. We will depend on the feedback received, and
input collected to determine next steps and potential timelines.

Cermaq will engage with the Mi’kmaq Nation in a separate and parallel process.

Request for an Aquaculture Option to Lease                                                 February 2019
to Nova Scotia Fisheries and Aquaculture                                                         page 33
Nova Scotia Expansion Investigation and Engagement Timeline

Request for an Aquaculture Option to Lease                         February 2019
to Nova Scotia Fisheries and Aquaculture                                 page 34
10. Other Information
Include any other information that you would like to be considered in review of this request.

For more information about Cermaq Canada please visit:

       cermaq.com/wps/wcm/connect/cermaq-ca/home

       facebook.com/cermaqcanada

       instagram.com/cermaqcanada/

       twitter.com/CermaqCan

       youtube.com/watch?v=vf6pZDTle0M

       youtube.com/watch?v=slWKpfTicJg

Request for an Aquaculture Option to Lease                                          February 2019
to Nova Scotia Fisheries and Aquaculture                                                  page 35
Public Notice and Disclosure

You are advised that in the event of a successful option request application, Fisheries and Aquaculture
may disclose, in accordance with the departmental Routine Access Policy, a proponent’s name, as well as
the nature, geographic area, and scale of the proposed development associated with an Aquaculture
Option to Lease.

Privacy Statement

The personal and business confidential information collected on this form and any attachments (“this
form”) will be used by the Nova Scotia Department of Fisheries and Aquaculture (“Fisheries and
Aquaculture”) for the purpose of deciding on your request for an Aquaculture Option to Lease. All
information collected is subject to the Freedom of Information and Protection of Privacy Act (“FOIPOP”)
and will only be used or disclosed in accordance with that Act.

By signing and submitting this form, I acknowledge that I have read, understand, and accept the above
statement regarding the collection, use and disclosure of the personal information provided on this form.

I also hereby certify that this information provided on this form is true and correct.

                                                                            February 28, 2019
                Signature of Proponent                                             Date

Request for an Aquaculture Option to Lease                                                  February 2019
to Nova Scotia Fisheries and Aquaculture                                                          page 36
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