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NLIS 1
May 29, 2001
(Fisheries and Aquaculture)

 

Minister announces new licences for the processing of shellfish waste

Gerry Reid, Minister of Fisheries and Aquaculture, announced today that the department has issued two licences for the processing of shellfish waste. These licences were issued in response to a Request for Proposals (RFP) which was issued by the department for the processing of shellfish waste into products such as chitin or chitosan. After receiving and carefully evaluating five proposals, the department today issued a shellfish waste processing licence to the two successful companies.

The successful companies are Grand Atlantic Seafoods in partnership with Applied Preservation Technologies Ltd., and Quinlan Group Ltd., who has partnered with a Chinese company, Guong Dong Zhong Tian Investment Company. The two companies have access to raw material and have presented a strong business case for their proposed operations. The technologies to be used by Grand Atlantic have come as a result of patented research at Memorial University and through research at the Marine Institute. The Quinlan Group intends to transfer technology from their Chinese partner.

"Since the collapse of the groundfish fishery in 1992, government and industry have worked diligently to revitalize and diversify the fishery in Newfoundland and Labrador," said Reid. "One of the most successful emerging sectors has been in shellfish harvesting and processing, and after building this industry we are now ready to develop associated business ventures. The processing of shellfish waste has been identified as a viable and potentially lucrative venture which could have a significant impact on the province�s economy through revenue generation and increased employment."

In response to the RFP, government received five proposals which were evaluated by a committee. Based on the amount of resource available and the level of risk and capital costs associated with such a venture, government decided to issue only two licences at this time. While the initial RFP called for the issuance of only two licences, government reserves the right to issue other licences. This situation will be reviewed in 2002-2003, and depending on resource utilization, another RFP may be issued. At this time, other processors will be prohibited from processing secondary products from shellfish waste though a departmental condition of licence.

"This industry will help to further diversify and grow the fishery in the province, and will increase the utilization of our marine resources, thereby increasing economic returns to the province," added Reid. "Within the next two to three years, the issuance of these two licences could add an additional $45 million into the province�s economy."

To ensure better utilization of all fish resources, government will prohibit the dumping of shellfish waste. The enforcement of this regulation will be phased in over a two-year period beginning in 2002. In addition, the department will not restrict existing producers from the crushing and drying of shellfish products however, such processing must be carried out under a processing licence. "This will allow for the development of infrastructures that could supply prepared raw material to the industry and provide opportunities for other processing operators," added Reid.

Some products that can be produced from shellfish discards are chitin, chitosan and cartenoproteins. There are technologies for the extraction of these products from shells, and excellent markets for the products produced. Prices for chitin and chitosan range from $10 to $1,000 per kilogram depending on product quality. Furthermore, some cartenoprotein products can sell for as much as $2,000 to $3,000 per kilogram.

Media contact: Elizabeth Matthews, Communications, (709) 729-3733.

Backgrounder

Chitin/chitosan and Other Products

Chitin is the second-most abundant natural polymer (chemical compound) on earth. It may be extracted from many natural sources, including the exoskeletons of shellfish such as crab or shrimp. Chitin has many unique properties: it is a biodegradable, non-toxic, positively charged biopolymer. Chitin is insoluble in almost all solvents. The further processed form of chitin is known as chitosan. Market prices for chitin and chitosan range from about $10 to $1,000 depending on product quality and end use.

The most common application of chitosan is in the treatment of waste water, where it is used to remove precipitates and toxic metals such as silver, cadmium, lead, chromium, mercury and nickel. Chitosan has many uses stemming from its ability to bind with lipids, and as chitosan is indigestible, it is often used as a weight loss agent. Additional uses range from ingredients in shampoo, to film coating for fresh fruit, textiles and photographic application. Biomedical applications include use as an accelerator for wound healing, a vehicle for drug delivery, fibres for sutures, wound and burn dressings, and a cholesterol reducer.

Chitin and chitosan are typically supplied in the form of flakes, powders, beads, fibres, sheets and films.

Shellfish processing results in large quantities of waste materials which can be processed into chitin, or its more valuable derivative, chitosan. The amount of chitin present in the shell may be affected by a number of factors, such as type of shell (e.g. shrimp, lobster, crab), shell freshness, and portion of the shell used. Typically shell portions with high calcium concentrations are low in chitin. Shrimp shells generally have a higher content of chitin than crab offal. Crab parts which have higher chitin content include legs, shoulders, and tips.

The chitin/chitosan process involves the crushing and drying of crab shell or other suitable species of crustaceans such as shrimp shell waste. The product is processed with acid and alkaline in order to remove protein and calcium. The product is then further dried and ground and packaged as a finished or semi-finished product. A plant set-up would involve a number of pieces of equipment for grinding or particulization, drying, acid and alkaline treatment, packaging and effluent treatment.

Other products that can be produced from shellfish waste include glucosamine and carotenoids. Glucosamine is a further derivative of the chitin/chitosan process. It is an amino sugar and is actually glucosamine hypochloride combined with either sodium or potasium sulphate. It has been observed that glucosamine has a beneficial effect on treatment and symptoms of osteoarthritis as it helps regenerate joint cartilage.

Carotenoids can also be extracted from crab and shrimp shells in a separate process which does not influence or depend on chitin/chitosan extraction. The process is achieved by using chemicals to dissolve the pigment for removal and drying but can possibly be modified by the addition of natural enzymes in order to achieve lower costs of production. Carotenoids can be used in such as primary applications in salmon and trout feed and it is now also being recognized for its vitamin-like qualities.

2001 05 29                                             10:15 a.m. 


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