Private equity impact fund Ocean 14 Capital Fund has entered into an investment agreement with Norwegian cod farming operation KIME Akva to help grow production and supplement diminishing wild catches.
With around a fifth of the global catch, Norway is one of the largest producers and exporters of cod. However, supplies of the whitefish have faced strong headwinds with a 20% reduction in quotas in the Barents Sea in 2024 to 543,427 tonnes, on top of a 23% quota reduction in 2023. These cuts have driven prices higher.
Most Atlantic cod is caught in the Barents Sea by Norwegian and Russian producers, which collectively caught 761,000 tonnes in 2023, but catches have fallen 42% over the last eight years and are predicted to be down by almost 15% in 2024. Furthermore, quotas in Barents Sea have been reduced by another 25% in 2025 to 340,000 tonnes, with Norway’s share of the cod quota being 163,436 tonnes.
“What started as a side-project to my father’s fishing company, has over time become a real solution to the reduction of wild cod fishing through incrementally decreasing quotas,” said Ørjan Jensen, CEO of KIME Akva. “The back story, which we recount on our website, is interesting, but what has become apparent over time is that with the right processes in place, farming cod in their natural habitat in Northern Norway is not only potentially profitable, but perhaps more importantly a sustainable answer to the global need for fish protein.”
Established in 2020, Finnsnes-headquartered KIME Akva’s ambition is to become a cost-leading, fully integrated cod farmer by 2025. By building in-house juvenile production, it hopes the venture can assure high quality at lower costs.
The company has invested heavily in license development and aims to have nine sites by 2029. Currently, KIME Akva has acquired five sites in Northern Norway and has licenses for 12,900 tonnes approved and initiated application processes for roughly 44,000 tonnes of maximum allowable biomass (MAB).
In 2024, KIME Akva completed its first full production cycle and plans to scale production up to 24,000 tonnes harvest-weight per year by 2030.
“We are excited to partner with the strong team at Kime to provide a sustainable, high-quality supplement to wild cod, stocks of which are under pressure for a variety of reasons. Through our partnership with KIME, the Ocean 14 Capital Fund gains a foothold in the most efficient operator, with a well-structured team and leadership, in a market that is rapidly intensifying,” said Max Holtzman, Principal at Ocean 14 Capital.
In addition to supporting KIME Akva’s operational expansion, the Ocean 14 Capital Fund’s investment will also support the firm to develop tools to improve the forage fish dependency ratios (FFDRs) and feed conversion ratios (FCRs), as well as reducing waste and plastic pollution.
Cod farming requires significant amounts of feed, partly derived from wild fish stocks, while energy required for the various farm operations will contribute to the carbon footprint. The FFDR calculates the quantity of wild (forage) fish used in feeds in relation to the quantity of fed animal production, while the FCR measures the efficiency of feed conversion.
“We are excited to be working with the impact team at the Ocean 14 Capital Fund, as our aim is to lead the development of the sector by working with them to look into/investigate adopting Zero FFDR and test Regenerative Waste production models,” Jensen said.
Holtzman added: “The Ocean 14 Capital Fund and KIME are well aligned with driving and improving operational improvements and efficiencies at important intersection of sustainability and finance, each which complements the other.”
