Laxey land-based salmon farm in the Westman Islands (Vestmannaeyjar), Iceland.
Photo: Laxey.
AKVA Group announced this week the award of a contract with Icelandic land-based farmer Laxey for module 2 of a re-use grow-out facility for Atlantic Salmon at Westman Islands (Vestmannaeyjar), Iceland. The contract value is approximately EUR 20 million (USD 20.5 million).
The aquaculture technology group - which already partnered with Laxey to develop the first of six grow-out modules at the Icelandic RAS facility - added that the realization of the contract and AKVA's delivery is subject to the land-based salmon farmer obtaining the necessary financing, which, it said, is expected to be fulfilled during March 2025.
Looking at its financing history, it does not appear that the Icelandic company - which intends to establish a 32,000 ton/year land-based fish farm for Atlantic salmon - will have any trouble doing so.
In the summer of 2023, Laxey completed the first financing round, raising EUR 42 million (USD 43.2 million). In it, along with the sale of shares, all convertible bond holders opted to convert their bonds into shares, expanding the company's shareholder base from one to 22. Later, in April 2024, the company completed a private placement of EUR 40 million (USD 41.1 million).
Due to strong investor demand, in June 2024 it initiated a new financing round in which it invited its employees to participate. Through this private placement, Laxey raised an extra EUR 6 million (USD 6.1 million) to start the construction of the second phase of its 4,500-ton HOG land-based salmon production plant. Following these financing rounds, the number of shareholders increased from 22 to 68.
In addition, in October 2024, Iceland-based Arion Bank agreed to financially support Laxey's plans. "With the support of Arion Bank, we can continue on our current path, build a new industry in Vestmannaeyjar, and maintain our focus on environmentally friendly farming methods," Laxey's chairman Lárus Ásgeirsson stated then.
In addition to securing the necessary financing for the development of its Atlantic salmon facility in the Westman Islands, last year Laxey reached other milestones, such as the Power Purchase Agreement with Landsvirkjun (National Electric Power Company of Iceland); the collaboration agreement with Skretting -which will provide the feed for its hybrid flow-through salmon project -; or the agreement with Baader, signed in November, for the supply of advanced processing equipment.
Shortly before, in September, the salmon company had announced the appointment of Hörður Orri Grettisson - a native of Vestmannaeyjar with deep roots in the community - as the new CFO, as its smolt station became fully operational following the transfer of the first batch of salmon fry to the final RAS unit.
AKVA Group, for its part, also achieved several milestones last year after experiencing what it called a disappointing 2023. In February, it presented the world's first boat hull with climate-neutral raw materials in Norway. In March, the global technology and service company announced a partnership with Inseanergy to achieve the electrification of the Chilean aquaculture industry. And, in April, Nordic Aqua Partners - China's first commercial-scale RAS Atlantic salmon farm, for which AKVA was the technology supplier throughout the process - completed its first harvest of Atlantic salmon.
Thus, with three major projects on three different continents, it started a year in which AKVA also introduced new products, such as an air dome to optimize deep farming; completed the acquisition of AI aquaculture technology company Observe to strengthen its digital services; or reached agreements - as the one announced now - for the construction of new RAS facilities, such as Årdal Aqua's post-smolt project in Årdal, Vestland County, Norway, which it took over from Billund Aquaculture, or Cermaq Chile's new RAS smolt facility in the Los Lagos Region.