Andfjord Salmon "delighted with progress" as construction ahead of schedule

Andfjord Salmon is enjoying a successful autumn, with the announcement that construction of its salmon farming facility at Kvalnes in Andøya is progressing ahead of schedule.

The Norwegian land-based salmon farmer also had good results during the summer months. The company completed its inaugural harvest of Atlantic salmon in July. At that time, CEO Martin Rasmussen reported a "industry-leading" survival rate of 97.5%, adding "We are exactly where we want to be."

During its initial construction stage, Andfjord Salmon plans to increase its production capacity to 8,000 tonnes and develop major shared infrastructure such as waterways and a port area to support its long-term goal of a 40,000 tonne total production capacity at Kvalnes by 2030. Pre-cutting in connection with blasting and excavation of waterways commenced on schedule in early September.

According to a statement released by the company on Monday 6 November, rock pit excavation for the current build-out phase is now 60% complete. The first of the two planned rows of pools, housing six pools, has already been excavated, with the second row in progress.

Fast progress helps to "de-risk" buildout, says CEO

“We are delighted with the pool pit progress, which is ahead of schedule. This adds flexibility to our plan which helps to de-risk the overall build-out project,” said Rasmussen in a statement announcing the project advancements.

In line with its sustainability profile, Andfjord Salmon has adopted a "mass balance" approach for the current build-out phase, meaning excavated masses from pool pits and waterways are used in the development of a new harbour at Kvalnes.

According to the company, around 300 dump truck loads of excavated rock and soil are transported from the pits to the harbour area every day.

Andfjord Salmon intends to use this material to construct a quay and brekwater, saying "The mass balance approach considerably reduces both operating costs and CO2 emissions associated with the build-out," and adding, "Both the harbour area and waterways workstreams are progressing as planned."

In support of its Kvalnes expansion, Andfjord Salmon secured NOK 900 million in funding earlier this year, composed of NOK 825 million in bank financing, in addition to refinancing existing debt of NOK 75 million.

The company has also completed a private placement of new shares that raised gross proceeds of approximately NOK 615 million.