The U.S. Environmental Protection Agency (EPA) has approved a modified National Pollutant Discharge Elimination System (NPDES) permit for Ocean Era’s Velella Epsilon project, marking a historic step forward for offshore aquaculture in the United States.

The Hawaii-based company is now authorized to raise up to 20,000 red drum in a single net pen located more than 40 miles off the coast of Sarasota, Florida. This will be the first open-ocean finfish aquaculture project permitted in U.S. federal waters. The permit, effective from June 17, 2025, through July 7, 2027, replaces the original plan to farm almaco jack with red drum, a species Ocean Era says offers greater domestic market potential.

This decision follows a rigorous seven-year federal review process and highlights ongoing challenges in securing approvals for offshore aquaculture in the U.S., where industry advocates continue to call for a streamlined, consistent regulatory framework. “This is an important step forward for the growth of American aquaculture,” said Drue Banta Winters of Stronger America Through Seafood (SATS). “No commercial-scale finfish farm has previously navigated the full federal process successfully.”

“Today’s modern aquaculture uses the latest science, research and technology, including AI technology, sophisticated computer modeling, underwater camera and robotics, to raise fish in an environmentally sound manner. We can responsibly produce our own sustainable seafood, here in the U.S., without harming our oceans,” Winters said. “We should be encouraging more investment in American seafood, which is why SATS continues to advocate for legislation to establish a clear regulatory pathway for open ocean aquaculture. That is what is needed to ensure that businesses and investors have a path to get their farms into the waters. Growing our seafood in deep, offshore waters can provide significant benefits to the U.S. economy and enhance our food security.”