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Halibut PEI received permission to expand into an adjacent provincial park last year. (CBC)

The P.E.I. government and Ottawa are pitching in $1.575 million to assist a land-based halibut farm in Victoria-by-the-Sea to double its production.

In August 2012 Halibut P.E.I. received permission from the Victoria-by-the-Sea Community Council to expand its plant into an adjacent provincial park, part of a plan to increase production from 35 to 70 tonnes of fish a year. On Thursday the provincial Innovation Minister Allen Roach and federal Fisheries Minister Gail Shea announced funding for that expansion.

The province will provide a $775,000 loan, and ACOA is adding a $500,000 loan. The company is also getting $300,000 from the federal Aquaculture Innovation and Market Access Program.

"Halibut PEI is an excellent example of our Government’s support to help rural companies succeed and remain competitive in the global marketplace," said Shea in a news release.

Company president Jim Dunphy suggested Halibut PEI is already looking ahead at further expansion.

"We feel there is a potential to develop a land based halibut aquaculture industry in other locations around the Province that have access to salt water wells creating new year round jobs,” said Dunphy.

Last year the company estimated the total cost of the expansion would be $2 million.