Just over two and a half years ago, Det Norske Veritas started a project. The self-owned foundation will invest more in the farming industry. The turnover is to increase from NOK 200 million to one billion, but the ambitions do not stop there. That means growth and acquisitions.
– We want to help shape the future.
The words belong to Thomas Vogth-Eriksen. He has over 35 years’ experience in DNV, and since last autumn he has held the position of director of aquaculture.
- DNV provides services within certification, technical advice, testing and digital solutions for several sectors, including maritime, oil and gas, energy, food and health.
- DNV is an independent foundation that was established in 1864.
- Turnover of over NOK 30 billion in 2023 and an annual profit of almost NOK three billion.
- Close to 15,000 employees from 122 nationalities with activities in more than 100 countries.
Source: DNV’s Annual Report 2023
In the summer of 2023, DNV bought the fish health company Åkerblå, as part of the project. The foundation knew a lot about cage structures through engineering knowledge and certification services. The same applied to environmental competence. But expertise about life in the cages was limited. DNV wanted that knowledge “in house”.
– We became one of the world’s largest suppliers of fish health with the acquisition of Åkerblå. When we are to develop standards and services, it must be with an understanding of fish health. We now have up to eighty veterinarians and fish health biologists. We are very proud of that, says Jørgen Andreas Åm Vatn, international growth manager at DNV. He is a trained veterinarian and was central to the acquisition of Åkerblå.
– Well over halfway
The aquaculture investment is about the fact that Norway’s second largest export industry measured in value is a user of the ocean space, in the same way as the maritime industry and the oil & gas industry. This is a field in which DNV is already very active, and where sales amount to several billion kroner.
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– We already had a turnover of NOK 200 million towards the aquaculture industry in 2022, before the acquisition of Åkerblå. Our ambition, if we are to have a certain size, is a billion kroner in turnover. This year, with the acquisition, we are well over halfway to the goal. In a couple of years, I hope we will see that billion, says Vogth-Eriksen.
– We want to have such a big momentum that we don’t just run around chasing contracts, but that we can also take a more formative role, drive industrial development, build standards and start taking the type of positions we have had in the maritime industry in recent years 160 years, adds Vatn.
Such a target, with such a time horizon, means both organic growth and more acquisition candidates, says Vogth-Eriksen.
– The fact that we are an independent foundation means that we do not have to pay dividends to owners, but it also means that we have no one who can inject money. We need to generate income and profits that give us the independence to develop and take the positions we take, says the aquaculture director, adding:
– This means that we aim to use the equivalent of five percent of external turnover for research, development and innovation – every year. For 2024, this means more than NOK 1.5 billion for this purpose.
– We don’t make exits, so when we buy something it’s to stay with us for a long time. Åkerblå was the first of hopefully several acquisitions. We have several exciting things happening. The world is big, with many countries, and we are in the loop on many things, says Vatn, without mentioning companies or aquaculture sectors.
Following this interview, DNV has become the sole owner of Ocean Ecology, a British company that supplies technical and advisory services to companies in the marine industry, as part of its ambition to become bigger in aquaculture.
Expectation to take hold
DNV saw a farming industry that is on the brink of really having to industrialise, while at the same time it has to answer that it has its sewing matters in order, says Vatn.
– With the two trends, you are slightly at risk of getting a vacuum. At this point of intersection, we want to be present to play a shaping role. Together with the industry, we will contribute to the further development of the industry in a sustainable and profitable way.
DNV’s strategy also means that the foundation believes that the farming industry has challenges that must be solved.
– We cannot sit here and say that everything is great and wonderful, and that there is no point in doing anything. Then we would have had nothing to do in this industry. We will help drive this development further, says Vatn.
– Part of the positions we have taken are precisely formative, that we dare to say that we want to be involved in the development of the industry, handle the development, while at the same time we have standards that provide a basis for better results and healthier operations, then with focus on ESG (Environmental, Social and Governance, which in Norwegian translates to environmental, social and business ethics, journal note), says Vogth-Eriksen.
The director of aquaculture believes the answer to the question of whether the aquaculture industry is sustainable is “yes” followed by a “but”.
– When you have fish mortality between 16-17 per cent on average, it is too high, many in the industry also say so. The general public also believes it is much higher than it should be, and there is an expectation that the industry itself will address this, says Vogth-Eriksen.
– Tight space
– We need someone who takes a comprehensive and far-sighted position, and who is not just opportunistic in a short-term context, says Vogth-Eriksen.
Taking the turnover in aquaculture to NOK one billion is only the first stage, says Vogth-Eriksen.
– I am so grown up that I will participate in that stage, then Jørgen and the next generation will have to take stage 2 from one to ten billion, says Vogth-Eriksen and smiles.
Vatn believes that not many people have realized how large parts of the sea area are in the process of being protected and what demands will be placed on biodiversity.
– Space is becoming tight and industry players must start documenting their impact on the local environment. With both fisheries, shipping, energy production and seafood production, it will be demanding to ensure biological diversity at the same time, says Vatn.
– With our background as a world leader in maritime transport, oil and gas, renewable energy and now in aquaculture, we want to play an orchestrator role. We are used to this from other industries. It is about establishing public-private cooperation, industrial cooperation and good initiatives that everyone can get behind, adds Vatn.
Increased demand for fish means that we must also look at other types of farming installations, new technology and new locations, both on land and offshore, says Vogth-Eriksen. Recently, DNV was given responsibility for assessing the impact of areas for aquaculture at sea.
– It was particularly highlighted that the sum of expertise DNV and the Åkerblå group have was decisive for us winning this assignment, says Vogth-Eriksen.
