Funded project – Enzymatic conversion of seafood waste into products

Last updated: 21 September 2023
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Project lead: Mantzaris Fisheries Pty Ltd
Project partners: Deakin University
Status: Complete
Funding source: Circular Economy Innovation Fund – Round one
Funding amount: $150,000
Co-contribution: $324,240

This project has up scaled a green manufacturing process for obtaining a high value, omega-3 rich nutritional oil from squid processing waste, which was previously either used for low value applications or sent to landfill.

Background

Mantzaris Fisheries is Australia's largest producer/processor of arrow squid products and a key player in the European scallop market. They are a family-owned and operated company with a strong presence in the seafood industry for over 30 years, boasting over 45 years of experience. In addition to their core focus on squid and scallops, Mantzaris is also involved in the production and sale of fish fillets. During the processing of seafood, a significant amount of waste is generated, including fish and squid guts, heads, and backbones resulting from filleting. In the case of squids, more than one-third of the total weight consists of these waste byproducts. Surprisingly, the waste material contains a noteworthy 10-12% of healthy omega-3 oils and is rich in protein, making it suitable for fertiliser use.

The project focused on addressing the issue of seafood waste, which poses challenges for wild harvest fisheries, processors, and aquaculture industries. Combining seafood waste with other food waste can create complications due to the instability of long-chain omega-3 oil, leading to machinery malfunctions. Additionally, dried food waste remains oily and unstable. By processing this waste material into valuable omega-3 rich oil for human consumption and protein for animal or aquaculture feed, the project aims to create a value stream from what was once considered waste. This approach reduces the amount of seafood waste ending up in landfills and solves problems associated with the presence of unstable long-chain omega-3 oils in food waste.

Objectives

The objectives of the project were to:

  • address the issue of seafood waste and reduce materials to landfill and other waste destinations
  • increase material efficiency across sectors and supply chains
  • create new local jobs and increase circular economy skills in the workforce
  • reduce greenhouse gas emissions and pollution.

Process

  • Design and construct 200L pilot-scale reactor for utilizing immobilized and unimmobilized enzymes, enabling enzyme recovery and up to 100 recycles.
  • Conduct lab-scale experiments using fish waste (salmon and orange roughy) to optimize oil and protein production, comparing with squid gut products. Focus on omega-3 fats.
  • Develop, test, and optimize pilot-scale processes for squid oil production from squid gut waste. Integrate 200L enzyme reactor for re-esterification.
  • Collaborate with Therapeutic Goods Administration (TGA) for regulatory approval of squid oil as nutritional supplement. Conduct 3 Good Manufacturing Practice (GMP) runs at RMIT or CSIRO GMP facility.
  • Perform commercial and environmental impact assessment, project evaluation, and submit final report.

Challenges

  • Pilot-scale reactor assembly faced initial challenges with an ill-equipped supplier but improved with a specialist engineering firm.
  • Design and assembly of the pilot-scale system exceeded expectations due to supply chain issues, causing project delays.
  • Implementation and optimisation of the pilot-scale process required significant modifications, aided by engineers and specialists.
  • Regulatory and manufacturing requirements for complementary medicine posed challenges, resolved by engaging an expert in the field.
  • Ensuring a skilled workforce and managing rising costs are challenges for future commercial production of squid oil as complementary medicine.
  • Adapting to evolving consumer and market perceptions led to the incorporation of an additional oil finishing step in the manufacturing process.

Insights

  • Having a well-defined plan is crucial for project development and launch. Set clear milestones, identify potential delays, and structure the project to avoid complete halts due to single delays.
  • Ambitious yet achievable milestones and regular check-ins aid progress and issue identification. Clearly outline project steps and requirements, assess team capabilities, involve expertise early, and seek guidance and support.
  • Consult stakeholders to onboard necessary expertise, reducing errors and delays. Remember, you don't need to be an expert in everything. Utilise available resources to ensure successful project execution.

Outcomes and Impact

  • Developed a pilot scale process for enzymatic conversion of squid processing waste into nutritional oil.
  • Successfully built a 200L pilot scale reactor and tested the process using squid processing waste.
  • Engaged regulatory expertise to establish pathway for approval of squid oil as nutritional supplement.
  • Demonstrated potential to divert 300 tonnes/year of squid processing waste from landfill, with future expansion up to 6000 tonnes/year.
  • Demonstrated reduction of 300 tonnes/year of greenhouse gas emissions (CO2 equivalents) by preventing methane release.
  • Creation of 2 circular products: nutritional oil and protein-rich fertilizer, with 2 additional ideas for future consideration.
  • Current revenue opportunity of $2.25 million per annum with plans for further expansion in commercial production.
  • Collaboration with Complementary Medicines Group for marketing and sales proposal development.
  • Contribution to City of Greater Geelong Waste and Resource Recovery Strategy 2020 – 2030, Barwon Southwest regional circular economy plan, and Victorian Government Circular Economy (Waste Reduction and Recycling) Act 2021.
  • Project activities resulted in significant return on investment for Mantzaris Fisheries.

What’s next?

  • Refine pilot-scale manufacturing process and transition to commercial scale to create local manufacturing jobs and divert squid processing waste from landfill.
  • Pilot-scale process requires further refinement for taste, storage stability, and consumer preferences of the oil.
  • Future goals include expanding the project to valorise waste from processing other seafood species like salmon and orange roughy.
  • Leverage project success to secure additional investment and research funding for addressing these challenges.
  • Opportunity for a PhD research project to develop improved methods for quality testing of highly colored oils like squid oil, which contains astaxanthin with antioxidant health benefits.
  • Current industry standard methods are better suited for testing highly refined opaque oils, necessitating the development of specialized testing methods for squid oil.
Two large oil containers with metal bars. Bulk squid oil is stored after extraction, separation and decanting, awaiting processing using the enzyme reactor system to produce human nutraceutical supplements.

More information

Visit Mantzaris Fisheries

Learn more about Australia Omega Oils

This project contributes to further research, development and growth of the Deakin BioFactory, a facility operating to convert food, agricultural and marine waste into protein rich feeds, nutritional ingredients, fertilizer, cosmetic ingredients and biomaterials for medical and textile applications.

Read the article on the Deakin BioFactory

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