CARLSBAD — A 70-year-old oyster farm in Carlsbad will permanently close by the end of August after the property’s owner, NRG Energy, discontinued its license, citing a “changing landscape” that no longer supports its operation.
Ann Duhon, senior manager of generation communications at NRG Energy, said Cabrillo Power I, a subsidiary of the Texas-based energy company, had allowed Carlsbad Aquafarm “limited use” of 5 acres of property in the outer Agua Hedionda Lagoon and along the south shore near the former Encina power plant.
The natural gas and oil-fueled electricity plant, owned by NRG Energy, retired in December 2018 after an agreement to decommission and demolish it.
Duhon said that the property’s landscape has “changed rapidly” in recent years following the removal of the Encina plant, temporary housing of Fire Station No. 7 in the area, and a new water intake structure set for installation at the nearby Carlsbad Desalination Plant.
As a result, NRG Energy decided to discontinue the farm’s license to use the property.
The farm has been at the Carlsbad location for more than half a century, has conducted aquaculture research, participated in coastal preservation projects, and offered oyster tours with tasting experiences. In July, the farm launched an online auction of its items.
“As part of this changing landscape, Cabrillo Power I LLC provided the requisite notice that it is discontinuing Carlsbad Aquafarm’s license to use the property and has allowed ample time for the farm to remove its facilities and vacate the premises,” Duhon said in an email. “As far as the future of the former Encina power plant site is concerned, community engagement is key.”
Duhon added that the city’s general plan will guide future development plans for the area.
Some residents speculated the farm’s closing was related to a norovirus scare earlier this year.
In January, the San Diego County Health and Human Services Agency linked 41 cases of norovirus to imported raw oysters from Northwest Mexico, served at The Fish Shop restaurants and Carlsbad Aquafarm. The aquafarm ceased all public tours in May due to the outbreak.
Thomas Grimm, CEO of Carlsbad Aquafarm, who has owned the business since 2015, said a “Christmas rush” led the farm to import oysters from Mexico. Grimm said the farm had imported oysters a few times before when they fell short of supply from a Washington state supplier.
“It was just one day, one group of people were exposed to this bad product, and we immediately stopped operations,” Grimm said.
Despite negative reviews from customers affected by the norovirus, Grimm said the farm’s closure was unrelated to the outbreak. NRG Energy declined to comment on whether the farm’s link to the norovirus outbreak influenced its decision to revoke the license.
Grimm told The Coast News that the farm is closing because the commercial aspect was not economically viable, and the team wants to focus on conservation projects.
“The farm itself is pretty small. It’s only five and a half acres, and a commercial farm needs to be much, much bigger to make good economic sense. So, this was more of a labor of love than it was an economic one,” Grimm said.
Grimm highlighted the farm’s conservation efforts, including filling biodegradable bags with oyster shells and placing them in coastal areas with erosion problems. Over time, the oysters form reefs that protect the shoreline from wave energy and erosion.
Since shellfish are filter feeders, growing oysters has helped maintain water quality and clarity in the lagoon and has increased biodiversity by expanding eelgrass beds.
The farm has been involved in living shoreline restoration projects for the last 14 years. While it will no longer operate at its current location, Grimm plans to continue the farm’s mission from his home office, focusing on conservation rather than selling oysters.
“The farm will continue on, but as a business that focuses on conservation,” Grimm said.
Carlsbad Aquafarm started as an aquaculture research facility after a 1960s study by San Diego State University identified the site as ideal for shellfish cultivation.
In the 1980s, the facility transitioned into a commercial business and later became known as Carlsbad Aquafarm when it began growing its own Pacific oysters. In 2021, the farm expanded its operations to include tours and tastings.
Grimm expressed gratitude to NRG Energy and the City of Carlsbad for their support and the opportunity to lead the farm’s operations, even if only for a short time in its long history.
“I wake up and I come here in the morning, it’s 4:30 in the morning, watch the sunrise over the lagoon, and I’m thinking, ‘This has got to be one of the most beautiful places I’ve ever seen,’” Grimm said. “To be able to say that I’m a tiny part of something this beautiful is very, very inspiring to me, and I appreciate having had the opportunity.”
