Taiwan is bounded by ocean on all sides. The Taiwan Strait to the west is quite shallow at an average depth of 60 meters, while not far from the eastern coastline, where mountains abut against the Pacific, the waters reach depths of around 1000 meters, offering a mother lode of deep-sea water. This inexhaustible water source has attracted the interest of local governments and businesses. But why? What's the big deal about deep-sea water?
This summer, the bottled water market belongs to deep-sea water.
You can see them displayed in the refrigerated sections of convenience stores and supermarkets: bottles of drinking water, priced around NT$30 apiece, proclaiming "100% deep-sea water." Whether taken from hundreds of meters deep off the coast of Hualien or imported from Japan by Uni-President Enterprises "with deep-sea water condensates," they display statements such as "containing over 90 trace elements and minerals" including aluminum and magnesium compounds, claiming to promote good health through good water.
An inexhaustible supply
What exactly is deep-sea water? How does it differ from ordinary seawater?
"Altogether 97% of the water on the earth's surface is seawater, with depths ranging from a few meters to several kilometers deep. The average depth is 4,000 meters, with water below 2,000 meters defined by oceanographers as 'deep-sea water.' Seawater flows with the rotation of the earth, and temperature differences between the polar regions and the tropics cause ocean currents," explains long-time deep-sea water researcher Chen Jen-chung, who sees a bright future for the deep-sea water industry. Chen retired this year from the Energy and Environment Research Laboratories (EEL) at the Industrial Technology Research Institute (ITRI), and is the founder and general manager of Aqua Lohas Water-Tech Service Company. After icebergs from Greenland melt in the Arctic Circle, the heavier cold water sinks and begins to flow in a deep-sea current, slowly making its way southward through the Atlantic toward the Indian and Pacific Oceans. When it reaches the continental shelf along the Pacific rim, the collision causes an upwelling before the water eventually begins to flow back to the Atlantic. It's estimated that one cycle takes several thousand years.
Seawater from two to three kilometers down rises to shallower levels, bringing with it nutrients such as minerals and trace elements. Large populations of fish congregate in these areas, and for this reason, most major fisheries in the world are distributed around these upwellings in the Pacific Ocean, including the Peruvian coast, the west coast of the US, and areas around Taiwan such as Pengchia Islet off Keelung, Chihsingtan in Hualien and Chihpen in Taitung.
Unlike limited petroleum and mineral reserves, deep-sea water, constituting 80% of all ocean water, is practically inexhaustible, since it's constantly replenished by rain and fresh water from the land.
Chen notes that, in theory, extracting seawater from a depth of several thousand meters is not a problem technologically, but due to excessive costs and little economic benefit, nobody has attempted it. Japan, with over two decades' experience studying deep-sea water, has set the bar lower, defining "deep-sea water" as seawater below 200 meters in depth. Sunlight can't penetrate to such depths, so there's no photosynthesis and in turn no plant life; there's no plankton there either. That and a year-round temperature averaging 6-10°C keeps the water in a stable, clean, inorganic state. The Japanese have even called it "holy water."
A swig of ancient water
Located at the rim of a Pacific Ocean trench, Taiwan has a fine geographical advantage. But until recently past the government hasn't been keen on the deep-sea water industry.
In 2002, the Water Resources Agency commissioned the EEL to conduct an industry study, based on the idea that nothing is possible without water. At that time Chen and the ITRI researchers brought along sampling equipment and a pump, hired a boat, and went to various locations off Hualien and Taitung to collect seawater from 300 meters down, and tested the quality of the water at Taiwan Fertilizer's nearby Hualien plant. This drew the interest of companies including Taiwan Fertilizer, the Lucky Cement Corporation, Kung-Lung Enterprise Company, and Young Energy Source Company (owner of the YES mineral water and beverage brand).
Deep-sea water is like a wellspring, offering Hualien-area businesses a new chance for pollution-free business. But getting at that endless supply of seawater in our backyard isn't an easy task.
The Hualien plant, which completed its pipe-laying project this May, experienced first-hand the problem of unstable marine conditions.
"In May 2006, a typhoon formed near Hualien, the first of a string of 13. The storm damaged previously completed work. And though the other typhoons didn't hit Taiwan, they generated large waves near Hualien, as high as 30 meters in some cases, despite being as far away as Guam. For marine construction to be carried out, the waves need to be less than a meter high," says Tina Huang, general manager of Taiwan Fertilizer's Hualien plant. Construction at sea is 27 times riskier than on land. Maeda Construction Co. of Japan, which was in charge of the pipe-laying, has an international patent for a deep-sea welding technique; however, the company had laid intake pipes at Kagoshima, which is on the Sea of Japan, not the Pacific, with vastly different marine conditions. This was a great challenge and learning experience for the Japanese construction company. Maeda ended up spending about double the original construction budget of NT$400 million because of repeated postponements.
Live near the sea, live off the sea
Despite the adage "Those who live near the sea live off the sea," Taiwan had a late start in deep-sea water research. Most of those pursuing this "blue gold" nowadays have something of an adventurous spirit.
In June 2005, the Lucky Cement Corporation completed Taiwan's first 710-meter-deep pipe-laying project, and then built a biotech park at the mouth of the Sanchan River in Hualien's Hsincheng Township, in a 50-hectare area near Chihsingtan, with the aim of entering the deep-sea drinking water, cosmetics, food and tourist recreation businesses.
Three years ago, Taiwan Fertilizer, which owns more than 600 tracts of land around Taiwan, started up a new project to make good use of a 46-hectare parcel of land of their Hualien plant which had lain idle for years. Last year they entered the water market by setting up Taiwan Yes Deep Ocean Water Company jointly with Young Energy Source.
Kung-Lung Enterprise, which started out 40 years ago quarrying stone in Hualien, began diversifying into the tourism industry 20 years ago when it foresaw diminishing prospects in quarrying. The company opened a 25-hectare tourist park along the coast of Chihsingtan in Hsincheng Township, complete with restaurants, a mineral museum and a monkey show. But when the SARS crisis struck in 2003 and tourism plummeted, they looked once again at changing course.
"We watched and waited with doubts for three years. Nobody had done this before in Taiwan, and we wondered if we would succeed," says Tseng Yu-chi, who heads Kung-Lung's deep-sea water department and is the daughter of company chairman Tseng Hsin-hsiung. To appraise market prospects, they went on about a dozen inspection tours to Japan, learning about pipe-laying, equipment, water allocation, back-end applications and other issues.
After their first successful pipe installation early this year, Kung-Lung pumped 4,000 tons of water a day, 1,000 tons of which was allocated for drinking water. But the bottling facility was still being built and they were unfamiliar with the marketing procedures for bottled water, so during their first half-year of operation they had the food companies Vedan and Taisun do this for them. This summer they will start bottling and shipping themselves. As for the remainder of the water, it will be used for raising salmon and Taiwan abalone.
Learning from others' experience
Right now the US and Japan are the only countries that have successfully commercialized deep-sea water, and the US had an earlier start than Japan.
During the oil crises of the 1970s, the US was compelled to start searching for alternative sources of energy.
To this end, the Hawaii state government founded the Hawaii Natural Energy Institute in 1974. Researchers made use of the 20oC temperature difference between deep-sea and surface water, installing a miniature offshore oceanic heat exchanger. In 1980 they laid an intake pipe to pump up seawater from below 2000 feet (around 600 meters), drawing up 30,000 tons per day. It's only in recent years that they began investing in the commercial potential of deep-sea water.
Now, after much planning, Hawaii has developed the natural energy lab area into an 870-hectare biotech park and leased space to 36 companies, producing drinking water and raising abalone, pearls, and algae for use in health food products like Spirulina tablets. The combined annual profits amount to US$40 million (about NT$1.3 billion).
In 1989, the Japanese government set up a deep-sea water research center in Kochi Prefecture on the island of Shikoku. After laying its first pipeline, Kochi Prefecture became a pioneer for other Japanese prefectures and Taiwanese businesses to learn from.
In 2005, Professor Masayuki Takahashi of the Graduate School of Kuroshio Science at Kochi University pointed out during a speech in Taiwan that after years of research, in 1996 Kochi Prefecture became the first to develop goods made of or processed with deep-sea water, including drinking water, cosmetics, shower gels, sake, beer, soy sauce and baked goods. That first year, eight competitors jumped into the fray, generating a business volume of ¥160 million. Come 2000, the number of companies was 120, with 384 patented technologies and an output value exceeding ¥10 billion.
Taiwan is bounded by ocean on all sides. The Taiwan Strait to the west is quite shallow at an average depth of 60 meters, while not far from the eastern coastline, where mountains abut against the Pacific, the waters reach depths of around 1000 meters, offering a mother lode of deep-sea water. This inexhaustible water source has attracted the interest of local governments and businesses. But why? What's the big deal about deep-sea water?
This summer, the bottled water market belongs to deep-sea water.
You can see them displayed in the refrigerated sections of convenience stores and supermarkets: bottles of drinking water, priced around NT$30 apiece, proclaiming "100% deep-sea water." Whether taken from hundreds of meters deep off the coast of Hualien or imported from Japan by Uni-President Enterprises "with deep-sea water condensates," they display statements such as "containing over 90 trace elements and minerals" including aluminum and magnesium compounds, claiming to promote good health through good water.
Deep-sea water is an inexhaustible resource. With multiple applications ranging from food and drinking water to healthcare, skin care and spas, it's a natural revitalizer.
Turning water into gold
The US and Japanese governments engaged themselves in pipe-laying and basic research, which was different from Taiwan, where private industry took to the fore. This highlights the different way that the Japanese and American governments look at this industry as compared to Taiwan.
"Taiwan had rarely taken the initiative in product development, and letting companies make it up as they went along was a worrying development," says Chen Jen-chung. Though drinking water is a rather low-tech product, care is still needed. Normal bottled drinking water undergoes disinfection, but because there are few germs in the deep ocean and the water is clean to begin with, ozone sterilization is unnecessary for deep-sea water. If it is nonetheless used it can produce high levels of bromates, which cause problems like rapid cellular oxidation and skin aging. So caution is needed during the final manufacturing process.
"At 90%, beer makes up the highest proportion of output value for deep-sea water in Japan. Beer brewed with mineral-rich deep-sea water has a distinctive nose," says Chen. There are broad applications, such as extracting trace elements like iron, zinc and copper for drugs to treat eczema and sinusitis, as well as aquaculture, and using the seawater temperature differences to supply energy for greenhouse orchids and temperate-zone vegetables.
In 2003, Chen, with the help of the China Credit Information Service, surveyed more than 70 domestic companies involved in aquaculture, foods, drinks, alcoholic beverages and cosmetics, estimating a future output value of the "blue gold" industry of about NT$18.9 billion, with aquaculture being the main component at NT$6.5 billion, followed by soft beverages at NT$4.9 billion, beer at NT$2.5 billion, and tourism/recreation at NT$1.6 billion.
The late bird gets the worm too
Among the "blue gold" industries, aquaculture is Taiwan's forte.
American and Japanese experience shows that using deep-sea water can at least halve cultivation time. Raising Japanese fugu puffer fish to maturity, for instance, normally takes five years, but it only requires two and a half years with deep-sea water. The Japanese therefore take advantage of deep-sea water's cleanliness and low temperature to hatch fish, or first raise the larvae of high-value seafood like abalone and lobster in deep-sea water, and several months later transfer them into ordinary seawater once they've grown strong.
Two years ago ITRI researcher Hsu Shih-sheng helped Lucky Cement lay pipeline, an experience that made him interested in the commercialization of deep-sea water. He resigned his position and moved to Hualien to raise Taiwan abalone.
Says Hsu, who has a background in ocean engineering, the aquacultural waters on Taiwan's west coast suffer from serious pollution and agricultural hormone runoff, causing massive die-offs of microscopic algae needed to raise Taiwan abalone. Many aquaculturists turned to Taiwan abalone larvae raised in mainland China and fed antibiotics, bringing them to Taiwan when they were three months old, only to find that they had developed weakened genes and defective digestive glands. Unable to feed properly, they died from poor physical condition, creating great losses for aquaculture.
"In the past, aquaculturists selected larger individuals from populations of Taiwan abalone for breeding, but after several generations they suffered from poor genetic diversity, and couldn't adapt appropriately to environmental changes," says Hsu Shih-sheng. After so many setbacks, deep-sea water from the east coast brought a ray of new hope to aquaculturists.
"However, using deep-sea water as a means to promote industrial-scale aquaculture requires vast areas of land and sufficient water. Hawaii installed a 1.4-meter-diameter pipeline as a common water source for the entire biotech park, supplying hundreds of thousands of tons of deep-sea water each day. Not only was the energy consumption cut in half, but the unit price was only 1% of what it had been," says Shu. Lucky Cement's biotech park now has 200 abalone pools; it's impossible to count how many abalone eggs are in them, but there are at least 100 million. If one kilogram of Taiwan abalone larvae can be turned into 50 million adult abalone, that would be an astounding success.
"Taiwan's total annual output of abalone is estimated at NT$3 billion, or approximately 250 million abalone. If 100 pools can produce 50 million abalone larvae each, they can supply the entire industry's needs in five growing periods. As long as the larvae are raised well in the initial stages, there will be no problems. Feeding in the later stages should be no problem and in the future they could even be exported to China," he figures.
A dream of "blue gold"
Deep-sea water appears to offer unlimited business opportunities, but because Taiwan lacks overall planning, will it result in a few companies becoming interested and making heavy investments, but not having the strength to follow through?
First, the scope of the "blue gold" industry is broad. The financial resources of companies are limited, and the applications are not diverse, mostly involving bottled water, aquaculture and tourism. There is a lack of market segmentation.
Kung-Lung has been given the go-ahead to build a 390-room five-star tourist hotel, expected to open in 2010. Focusing on land development while maintaining a handle on sustainable operation of its fertilizer business, Taiwan Fertilizer is planning to move its five fertilizer factories, now scattered around Taiwan, to Taichung, and then use the 46-hectare property of its Hualien plant along with an additional 18 hectares to be leased from the Harbor Bureau to build a seaside holiday park, complete with a tourist hotel and a spa fitness village. It is scheduled for completion in 2011.
Next come safety standards. Chen Jen-chung notes that the best areas between Ilan and Taitung for positioning pipes are near river estuaries. In these river delta environments, they observed after pipe-laying that flooding triggered by typhoons may result in increased turbidity of the estuarial waters. Therefore he recommends that operators not pump for three weeks after a typhoon passes. "Government and business should do more detailed research into the effect of floodwater volumes and turbidity in order to learn about the changes in natural conditions."
"Since private companies are investing in this area so boldly, we hope that the government can act faster so that companies won't have to do too much by trial and error," says Huang frankly.
Water Resources Agency director-general Chen Shen-hsien has written that deep-sea water is an emerging industry requiring government regulation and enforcement of safety and health standards for its proper development. At present the government has adopted the principle of growth in pace with private business, and last year the Council of Agriculture drew up plans to build a National Marine Biological Germplasm Bank at Chihpen, devoted to raising larvae of marine invertebrates, providing farmers, fishermen and others with deep-sea water, and conducting research.
The Taitung County Government had early on wanted to get into this business, and last year, after overcoming some hurdles, it received a pledge from the Ministry of Economic Affairs for NT$2.1 billion to build a biotech park on a 32-hectare parcel of land at the right bank of the Chihpen River. Under the supervision of the county government, the pipe-laying work, water distribution system and desalination plant are expected to be finished in three years.
"Taitung is superior to Hualien in that it hasn't been polluted by the cement industry, and it's located by an upwelling of the Kuroshio Current so the water is cleaner," says Luo Wen-chi, director of the Agricultural Affairs Section of the Taitung County Agriculture Bureau. Hualien operators acted hastily to seize this business opportunity, but there's some necessary construction that will not generate immediate earnings. Taitung County will oversee construction quality, then invite outside investment, to attain the goal of sustainable operation.
Some say that this seawater, which has undergone thousands of years of nourishment, is the only water resource given to mankind by the Creator that doesn't need to be replenished. With current scientific technology, even of we add the same known minerals to water, it will be impossible to achieve such stability and balance.
Yet, if this mother lode of the deep sea is to impart the Midas touch to Taiwan's "blue gold" industry, then business, government and academia need to retain a modest attitude as they dig up the secrets of the deep.
The Pacific Ocean stretches to the horizon off the mountainous east coast of Taiwan. This geographically advantageous region offers up a mother-lode of deep-sea water resources.
An inexhaustible supply
What exactly is deep-sea water? How does it differ from ordinary seawater?
"Altogether 97% of the water on the earth's surface is seawater, with depths ranging from a few meters to several kilometers deep. The average depth is 4,000 meters, with water below 2,000 meters defined by oceanographers as 'deep-sea water.' Seawater flows with the rotation of the earth, and temperature differences between the polar regions and the tropics cause ocean currents," explains long-time deep-sea water researcher Chen Jen-chung, who sees a bright future for the deep-sea water industry. Chen retired this year from the Energy and Environment Research Laboratories (EEL) at the Industrial Technology Research Institute (ITRI), and is the founder and general manager of Aqua Lohas Water-Tech Service Company. After icebergs from Greenland melt in the Arctic Circle, the heavier cold water sinks and begins to flow in a deep-sea current, slowly making its way southward through the Atlantic toward the Indian and Pacific Oceans. When it reaches the continental shelf along the Pacific rim, the collision causes an upwelling before the water eventually begins to flow back to the Atlantic. It's estimated that one cycle takes several thousand years.
Seawater from two to three kilometers down rises to shallower levels, bringing with it nutrients such as minerals and trace elements. Large populations of fish congregate in these areas, and for this reason, most major fisheries in the world are distributed around these upwellings in the Pacific Ocean, including the Peruvian coast, the west coast of the US, and areas around Taiwan such as Pengchia Islet off Keelung, Chihsingtan in Hualien and Chihpen in Taitung.
Unlike limited petroleum and mineral reserves, deep-sea water, constituting 80% of all ocean water, is practically inexhaustible, since it's constantly replenished by rain and fresh water from the land.
Chen notes that, in theory, extracting seawater from a depth of several thousand meters is not a problem technologically, but due to excessive costs and little economic benefit, nobody has attempted it. Japan, with over two decades' experience studying deep-sea water, has set the bar lower, defining "deep-sea water" as seawater below 200 meters in depth. Sunlight can't penetrate to such depths, so there's no photosynthesis and in turn no plant life; there's no plankton there either. That and a year-round temperature averaging 6-10°C keeps the water in a stable, clean, inorganic state. The Japanese have even called it "holy water."
A swig of ancient water
Located at the rim of a Pacific Ocean trench, Taiwan has a fine geographical advantage. But until recently past the government hasn't been keen on the deep-sea water industry.
In 2002, the Water Resources Agency commissioned the EEL to conduct an industry study, based on the idea that nothing is possible without water. At that time Chen and the ITRI researchers brought along sampling equipment and a pump, hired a boat, and went to various locations off Hualien and Taitung to collect seawater from 300 meters down, and tested the quality of the water at Taiwan Fertilizer's nearby Hualien plant. This drew the interest of companies including Taiwan Fertilizer, the Lucky Cement Corporation, Kung-Lung Enterprise Company, and Young Energy Source Company (owner of the YES mineral water and beverage brand).
Deep-sea water is like a wellspring, offering Hualien-area businesses a new chance for pollution-free business. But getting at that endless supply of seawater in our backyard isn't an easy task.
The Hualien plant, which completed its pipe-laying project this May, experienced first-hand the problem of unstable marine conditions.
"In May 2006, a typhoon formed near Hualien, the first of a string of 13. The storm damaged previously completed work. And though the other typhoons didn't hit Taiwan, they generated large waves near Hualien, as high as 30 meters in some cases, despite being as far away as Guam. For marine construction to be carried out, the waves need to be less than a meter high," says Tina Huang, general manager of Taiwan Fertilizer's Hualien plant. Construction at sea is 27 times riskier than on land. Maeda Construction Co. of Japan, which was in charge of the pipe-laying, has an international patent for a deep-sea welding technique; however, the company had laid intake pipes at Kagoshima, which is on the Sea of Japan, not the Pacific, with vastly different marine conditions. This was a great challenge and learning experience for the Japanese construction company. Maeda ended up spending about double the original construction budget of NT$400 million because of repeated postponements.
Live near the sea, live off the sea
Despite the adage "Those who live near the sea live off the sea," Taiwan had a late start in deep-sea water research. Most of those pursuing this "blue gold" nowadays have something of an adventurous spirit.
In June 2005, the Lucky Cement Corporation completed Taiwan's first 710-meter-deep pipe-laying project, and then built a biotech park at the mouth of the Sanchan River in Hualien's Hsincheng Township, in a 50-hectare area near Chihsingtan, with the aim of entering the deep-sea drinking water, cosmetics, food and tourist recreation businesses.
Three years ago, Taiwan Fertilizer, which owns more than 600 tracts of land around Taiwan, started up a new project to make good use of a 46-hectare parcel of land of their Hualien plant which had lain idle for years. Last year they entered the water market by setting up Taiwan Yes Deep Ocean Water Company jointly with Young Energy Source.
Kung-Lung Enterprise, which started out 40 years ago quarrying stone in Hualien, began diversifying into the tourism industry 20 years ago when it foresaw diminishing prospects in quarrying. The company opened a 25-hectare tourist park along the coast of Chihsingtan in Hsincheng Township, complete with restaurants, a mineral museum and a monkey show. But when the SARS crisis struck in 2003 and tourism plummeted, they looked once again at changing course.
"We watched and waited with doubts for three years. Nobody had done this before in Taiwan, and we wondered if we would succeed," says Tseng Yu-chi, who heads Kung-Lung's deep-sea water department and is the daughter of company chairman Tseng Hsin-hsiung. To appraise market prospects, they went on about a dozen inspection tours to Japan, learning about pipe-laying, equipment, water allocation, back-end applications and other issues.
After their first successful pipe installation early this year, Kung-Lung pumped 4,000 tons of water a day, 1,000 tons of which was allocated for drinking water. But the bottling facility was still being built and they were unfamiliar with the marketing procedures for bottled water, so during their first half-year of operation they had the food companies Vedan and Taisun do this for them. This summer they will start bottling and shipping themselves. As for the remainder of the water, it will be used for raising salmon and Taiwan abalone.
Taiwan Fertilizer entered the water market by opening the Taiwan Yes Deep Ocean Water Company jointly with mineral water supplier Young Energy Source.
Learning from others' experience
Right now the US and Japan are the only countries that have successfully commercialized deep-sea water, and the US had an earlier start than Japan.
During the oil crises of the 1970s, the US was compelled to start searching for alternative sources of energy.
To this end, the Hawaii state government founded the Hawaii Natural Energy Institute in 1974. Researchers made use of the 20oC temperature difference between deep-sea and surface water, installing a miniature offshore oceanic heat exchanger. In 1980 they laid an intake pipe to pump up seawater from below 2000 feet (around 600 meters), drawing up 30,000 tons per day. It's only in recent years that they began investing in the commercial potential of deep-sea water.
Now, after much planning, Hawaii has developed the natural energy lab area into an 870-hectare biotech park and leased space to 36 companies, producing drinking water and raising abalone, pearls, and algae for use in health food products like Spirulina tablets. The combined annual profits amount to US$40 million (about NT$1.3 billion).
In 1989, the Japanese government set up a deep-sea water research center in Kochi Prefecture on the island of Shikoku. After laying its first pipeline, Kochi Prefecture became a pioneer for other Japanese prefectures and Taiwanese businesses to learn from.
In 2005, Professor Masayuki Takahashi of the Graduate School of Kuroshio Science at Kochi University pointed out during a speech in Taiwan that after years of research, in 1996 Kochi Prefecture became the first to develop goods made of or processed with deep-sea water, including drinking water, cosmetics, shower gels, sake, beer, soy sauce and baked goods. That first year, eight competitors jumped into the fray, generating a business volume of ¥160 million. Come 2000, the number of companies was 120, with 384 patented technologies and an output value exceeding ¥10 billion.
Taiwan Fertilizer, with extensive land holdings, laid a five-kilometer-long pipeline stretching from its Hualien plant site down deep into the sea, drawing seawater from a depth of 700 meters.
Turning water into gold
The US and Japanese governments engaged themselves in pipe-laying and basic research, which was different from Taiwan, where private industry took to the fore. This highlights the different way that the Japanese and American governments look at this industry as compared to Taiwan.
"Taiwan had rarely taken the initiative in product development, and letting companies make it up as they went along was a worrying development," says Chen Jen-chung. Though drinking water is a rather low-tech product, care is still needed. Normal bottled drinking water undergoes disinfection, but because there are few germs in the deep ocean and the water is clean to begin with, ozone sterilization is unnecessary for deep-sea water. If it is nonetheless used it can produce high levels of bromates, which cause problems like rapid cellular oxidation and skin aging. So caution is needed during the final manufacturing process.
"At 90%, beer makes up the highest proportion of output value for deep-sea water in Japan. Beer brewed with mineral-rich deep-sea water has a distinctive nose," says Chen. There are broad applications, such as extracting trace elements like iron, zinc and copper for drugs to treat eczema and sinusitis, as well as aquaculture, and using the seawater temperature differences to supply energy for greenhouse orchids and temperate-zone vegetables.
In 2003, Chen, with the help of the China Credit Information Service, surveyed more than 70 domestic companies involved in aquaculture, foods, drinks, alcoholic beverages and cosmetics, estimating a future output value of the "blue gold" industry of about NT$18.9 billion, with aquaculture being the main component at NT$6.5 billion, followed by soft beverages at NT$4.9 billion, beer at NT$2.5 billion, and tourism/recreation at NT$1.6 billion.
The late bird gets the worm too
Among the "blue gold" industries, aquaculture is Taiwan's forte.
American and Japanese experience shows that using deep-sea water can at least halve cultivation time. Raising Japanese fugu puffer fish to maturity, for instance, normally takes five years, but it only requires two and a half years with deep-sea water. The Japanese therefore take advantage of deep-sea water's cleanliness and low temperature to hatch fish, or first raise the larvae of high-value seafood like abalone and lobster in deep-sea water, and several months later transfer them into ordinary seawater once they've grown strong.
Two years ago ITRI researcher Hsu Shih-sheng helped Lucky Cement lay pipeline, an experience that made him interested in the commercialization of deep-sea water. He resigned his position and moved to Hualien to raise Taiwan abalone.
Says Hsu, who has a background in ocean engineering, the aquacultural waters on Taiwan's west coast suffer from serious pollution and agricultural hormone runoff, causing massive die-offs of microscopic algae needed to raise Taiwan abalone. Many aquaculturists turned to Taiwan abalone larvae raised in mainland China and fed antibiotics, bringing them to Taiwan when they were three months old, only to find that they had developed weakened genes and defective digestive glands. Unable to feed properly, they died from poor physical condition, creating great losses for aquaculture.
"In the past, aquaculturists selected larger individuals from populations of Taiwan abalone for breeding, but after several generations they suffered from poor genetic diversity, and couldn't adapt appropriately to environmental changes," says Hsu Shih-sheng. After so many setbacks, deep-sea water from the east coast brought a ray of new hope to aquaculturists.
"However, using deep-sea water as a means to promote industrial-scale aquaculture requires vast areas of land and sufficient water. Hawaii installed a 1.4-meter-diameter pipeline as a common water source for the entire biotech park, supplying hundreds of thousands of tons of deep-sea water each day. Not only was the energy consumption cut in half, but the unit price was only 1% of what it had been," says Shu. Lucky Cement's biotech park now has 200 abalone pools; it's impossible to count how many abalone eggs are in them, but there are at least 100 million. If one kilogram of Taiwan abalone larvae can be turned into 50 million adult abalone, that would be an astounding success.
"Taiwan's total annual output of abalone is estimated at NT$3 billion, or approximately 250 million abalone. If 100 pools can produce 50 million abalone larvae each, they can supply the entire industry's needs in five growing periods. As long as the larvae are raised well in the initial stages, there will be no problems. Feeding in the later stages should be no problem and in the future they could even be exported to China," he figures.
A dream of "blue gold"
Deep-sea water appears to offer unlimited business opportunities, but because Taiwan lacks overall planning, will it result in a few companies becoming interested and making heavy investments, but not having the strength to follow through?
First, the scope of the "blue gold" industry is broad. The financial resources of companies are limited, and the applications are not diverse, mostly involving bottled water, aquaculture and tourism. There is a lack of market segmentation.
Kung-Lung has been given the go-ahead to build a 390-room five-star tourist hotel, expected to open in 2010. Focusing on land development while maintaining a handle on sustainable operation of its fertilizer business, Taiwan Fertilizer is planning to move its five fertilizer factories, now scattered around Taiwan, to Taichung, and then use the 46-hectare property of its Hualien plant along with an additional 18 hectares to be leased from the Harbor Bureau to build a seaside holiday park, complete with a tourist hotel and a spa fitness village. It is scheduled for completion in 2011.
Next come safety standards. Chen Jen-chung notes that the best areas between Ilan and Taitung for positioning pipes are near river estuaries. In these river delta environments, they observed after pipe-laying that flooding triggered by typhoons may result in increased turbidity of the estuarial waters. Therefore he recommends that operators not pump for three weeks after a typhoon passes. "Government and business should do more detailed research into the effect of floodwater volumes and turbidity in order to learn about the changes in natural conditions."
"Since private companies are investing in this area so boldly, we hope that the government can act faster so that companies won't have to do too much by trial and error," says Huang frankly.
Water Resources Agency director-general Chen Shen-hsien has written that deep-sea water is an emerging industry requiring government regulation and enforcement of safety and health standards for its proper development. At present the government has adopted the principle of growth in pace with private business, and last year the Council of Agriculture drew up plans to build a National Marine Biological Germplasm Bank at Chihpen, devoted to raising larvae of marine invertebrates, providing farmers, fishermen and others with deep-sea water, and conducting research.
The Taitung County Government had early on wanted to get into this business, and last year, after overcoming some hurdles, it received a pledge from the Ministry of Economic Affairs for NT$2.1 billion to build a biotech park on a 32-hectare parcel of land at the right bank of the Chihpen River. Under the supervision of the county government, the pipe-laying work, water distribution system and desalination plant are expected to be finished in three years.
"Taitung is superior to Hualien in that it hasn't been polluted by the cement industry, and it's located by an upwelling of the Kuroshio Current so the water is cleaner," says Luo Wen-chi, director of the Agricultural Affairs Section of the Taitung County Agriculture Bureau. Hualien operators acted hastily to seize this business opportunity, but there's some necessary construction that will not generate immediate earnings. Taitung County will oversee construction quality, then invite outside investment, to attain the goal of sustainable operation.
Some say that this seawater, which has undergone thousands of years of nourishment, is the only water resource given to mankind by the Creator that doesn't need to be replenished. With current scientific technology, even of we add the same known minerals to water, it will be impossible to achieve such stability and balance.
Yet, if this mother lode of the deep sea is to impart the Midas touch to Taiwan's "blue gold" industry, then business, government and academia need to retain a modest attitude as they dig up the secrets of the deep.
Cool, clean, mineral-rich deep-sea water is a new hope for Taiwan's aquaculture industry. Shown here is a Norwegian salmon hatchery operated by Kung-Lung Enterprise Company of Hualien.