R52,5m injection for Western Cape abalone farm (Engineering News Online)
Article as appeared on Engineering News (1 April 2011)
Local private-equity firm Inspired Evolution’s environmental and new energy technology fund has invested R52,5-million in Western Cape-based abalone farm Abagold.
The Hermanus farm is the country’s largest exporter and international competitor in the hatching, rearing, processing and exporting of local abalone.
The financial injection from Inspired Evolution’s R700-million equity fund, Evolution One, will enable the expansion of Abagold’s abalone production capacity for export and sets the global standard for cultivated abalone production.
Abalone Tanks
The current workforce of 270 employees as well as the yearly production of over 220 t – of which 207 t is exported – will be doubled and a fourth 7 ha farm will be built, the size of all three existing farms combined. This will help to protect a species in severe danger of depletion after significant poaching exploitation.
To increase its green footprint, the new farm will have seaweed tanks enabling the water from the abalone tanks to be filtered and reused before returning to the ocean. Other renewable- energy and environmental approaches are the building of a turbine to recover 8% of the electricity and assisting the municipality in providing desalinated water to the region.
Abagold MD Christo du Plessis says, as the company understands the cultural significance of abalone, Abagold is committed to responsible growth through innovation, science and mariculture best practice, and its aim to achievesustainable wealth for its employees and shareholders through balance.
Inspired Evolution CEO Michael Brooks says Abagold has been identified as one of the advocates of sustainable aquaculture, backed by a long history of pioneering the breeding of abalone in captivity as well as a commitment to environmental and social responsibility. The company management team’s dedication to creating value for stakeholders and the increasing international demand for abalone contributed to its investment decision.
Evolution One’s commitment as a financier will enhance the financial viability of Abagold’s export expansion from Hermanus. Further, investing through a black economic-empowerment trust, in partnership with the Industrial Development Corporation of Southern Africa (IDC), will benefit previously disadvantaged South African stakeholders, adds Brooks.
Abalone being processed in the Abagold Factory
The Evolution Fund focuses on providing expansion capital to enterprises involved in cleaner energy generation and energy efficiency, cleaner manufacturing processes and technologies, improving air quality and emissions control, water quality management, waste management, agri- business and natural products. Its investors include the International Finance Corporation, Castleway, the Global Energy Efficiency and Renewable Energy Fund, the African Development Bank and the IDC, as well as development funds from Norway, Switzerland and Finland.
Inspired Evolution raised its first $94-million fund for deployment into environmental and new energy technology opportunities throughout South Africa and the Southern African Development Community (SADC) countries. Following investments in Enviroserv, Red Cap and Abagold, Inspired Evolution is actively seeking to identify other new, compelling investment opportunities in South Africa and throughout the SADC region.
