Arctic Seafarm's new facility will be located in Langsetvågen, a Nesna industrial zone, with immediate proximity to the sea and a well-established infrastructure.
Photo: Arctic Seafarm.
Norwegian salmon producer Arctic Seafarm announced it has secured financing to build Phase 1 of the sustainable land-based aquaculture facility it will construct at Nensa, in Helgeland, Nordland County, Norway.
It will do so in collaboration with its partners, the fish farming company Kvarøy Fiskeoppdrett and the private equity fund EMK Capital which, following a private placement targeting these two companies and other selected existing shareholders, has become the majority shareholder.
The new facility, which once completed will employ around 100 people, will be strategically located in Langsetvågen, an industrial area in the municipality of Nesna with immediate proximity to the sea and a well-established infrastructure. There, Arctic Seafarm will produce salmon with a low climate footprint and a focus on fish welfare.
In announcing its plans to build the land-based salmon facility, Arctic Seafarm remarked that, as the global demand for protein increases rapidly, food production must not compromise animal welfare and climate considerations. Therefore, it will produce salmon on land using a hybrid flow-through system, protecting the fish from sea lice, the external environment, and safeguarding them against escapes.
"Arctic Seafarm was founded with the goal of farming salmon in a more sustainable way than traditional aquaculture does today. This applies to fish welfare and minimizing our impact on the climate and environment," Magnus Kibsgaard, CEO of Artic Seafarm explained.
"We have a strategic partnership with Kvarøy Fiskeoppdrett, a local fish farmer on the Helgeland coast. They are the world's most certified fish farmer and together we will supply the global market with 8,000 tons of salmon annually," he added.
In Phase 1, which it has just secured funding for, Arctic Seafarm plans to produce approximately 10,000 tons (8,000 tons HOG) and employ about 40 people. Nevertheless, the 15,000 tons MAB (Maximum Allowable Biomass) grant will allow the production of up to 25,000 tons of salmon in subsequent phases.
Nesna facility will be powered by solar, hydroelectric, and recycled energy from the production process. It is expected to be fully operational in 2027, with the first smolt to be introduced in 2026.
Arctic Seafarm also pointed out that the construction of a land-based aquaculture facility "requires the best technology" and that is why they have partnered with Eyvi, Totalbetong, and Johs. J. Sylteren. They are responsible for delivering a turnkey facility and have already worked with the land-based salmon producer for several years on detailed planning.
"We have set very high standards, both in terms of sustainability and fish health and welfare. Eyvi and Totalbetong have delivered on this and more. The groundwork is already underway, and we look forward to realizing the project," said Magnus Kibsgaard.
While Johs. J. Sylteren is responsible for all site preparation work for construction, Eyvi and Totalbetong are delivering a hybrid recirculation system where seawater is pumped from the sea for filtration and disinfection before entering the facility.
This, the company explained in its release, eliminates the risk of diseases and sea lice, providing the fish with a much better quality of life. As mentioned above, the facility will use only solar and hydroelectric power, and the turbines will generate electricity when the clean water returns to the sea.
"The solutions are highly energy-efficient, they are designed with fish welfare in mind, and we are also facilitating a good working environment for those who will operate the facility," Kjetil Isaksen, CEO of Eyvi explained. "We are proud of the result and the excellent solutions we have developed together with Totalbetong and Arctic Seafarm."
As noted, the announcement of the full funding for Phase 1 of Arctic Seafarm's sustainable land-based salmon facility in Nensa comes with the news that private equity fund EMK Capital is now its new majority shareholder. This firm specializes in investing in opportunities where there is unrecognized and/or hard-to-realize value and it can partner with outstanding management teams in executing transformative change.
The change in ownership - which the company described as "the final piece of the puzzle" - followed a successful private placement targeting EMK Capital, Kvarøy Fiskeoppdrett, and other selected existing shareholders in which ABG Sundal Collier and SpareBank 1 Markets acted as financial advisors to Arctic Seafarm in the transaction.
According to the release, Arctic Seafarm CEO Magnus Kibsgaard is very pleased to have EMK Capital on board, which will bring professionalism and experience to the company. He also wanted to highlight the important role of its experienced farming partner, Kvarøy Fiskeoppdrett, the family business behind companies such as Kvarøy Arctic or Kvarøy Smolt.
"I would also like to highlight Kvarøy Fiskeoppdrett. Since they joined the project, they have contributed their knowledge of salmon farming, which spans 48 years and is one of the keys to the success of this project," Kibsgaard said.
Finally, he also thanked Bjørn Pedersen, "who initiated the idea and set everything in motion," and the municipality, led by the mayor Hanne Davidsen and her administration, "who has consistently shown great support for the project."
