China's first commercial-scale RAS Atlantic salmon farm ready for first harvest in March

After a test harvest in mid-February with 5.0 kg live-weight fish of what the company described as "supreme quality," Nordic Aqua's first commercial harvest will arrive in March. China's first commercial-scale RAS Atlantic salmon farm announced it during its Q4 2023 results presentation. In this quarter, in addition to strong operating results, it also completed "on time and on budget" the construction work on Phase 1 of its project.

"The fourth quarter of 2023 was another eventful quarter for Nordic Aqua," CEO Ragnar Joensen claimed in a statement. "Biological performance was good during the quarter with good fish health and strong growth. We continued the important work of increasing management capacity and expertise as we continue to grow."

"The overall status at the end of the period is that the Nordic Aqua team, with strong support from local authorities and in collaboration with leading industrial partners, is all set for the first harvest at the end of next quarter and ready to execute on the next steps in developing the company towards 20,000 tonnes," he finally announced.

A successful harvest test in February 2024

As mentioned, during Nordic Aqua's Q4 2023 results presentation, the company said it had conducted a test harvest in mid-February. Salmon of 5.0 kg live weight of "supreme quality," with a color of around 28 on the SalmonFan, good fat level - "we have been measuring fat levels all the time and they are in line or a little bit better maybe than the trend lines from similar testing from sea-based farms," Ragnar Joensen stated during the presentation -, and a taste that, he added, "has been fine."

"No issues with taste," Aqua Nordic CEO explained. "We are producing in vast units so, of course, we need a purging but then, after having the fish purged, the taste is very good. So I think also the shape, they look very robust our fish, so, we are very pleased with that also."

As said, China's first commercial-scale RAS Atlantic salmon farm expects first harvest by the end of next month. "And then we'll gradually increase the harvest by up to 350 tonnes per month from May. And then, what we call Batch 1, we expect that to be harvested out in June and we should at least have an average rate of 5.3 kilo live weight. And then, we will continue from June and onwards with Batch 2, and onwards with Batch 3 later," Joensen said.

No operating income but good operating results

Regarding operational results, they were good for Nordic Aqua in Q4 2023, with Phase 1 construction work completed on schedule both on time and on budget. Biological performance was also good in all batches, with strong growth - fish from the first March harvest, for example, had an average live weight of 4.6 kg in mid-February -, a mortality rate of less than 1.6%, and no signs of maturation.

As it has not yet reached the commercial phase of its operations, the company had no operating income in the fourth quarter, but Nordic Aqua did note that in November 2023, it improved its liquidity through a private placement that secured EUR 8.4 million (USD 9 million) in new equity, to increase the financial cushion and flexibility.

With Phase 1 completed and Phase 2 financing secured, Nordic Aqua is evaluating sources of debt financing for this second phase, which will double capacity to 8,000 tons. Preparations are also well advanced for the expansion of Phase 3 to 20,000 tons, the first harvest of which could take place in 2027. However, the final decision on the timing of the third phase will be made in Q3 2024.

Focused on launching its salmon in the Chinese market

Concerning the outlook for the year ahead, the company recalled that the second stage of Gaotang's construction started in Q3 2023. Incubation and start of feeding will be completed in April 2024, with the first egg incubation scheduled for Q3 2024, and the first stage 2 harvest scheduled for Q3 2026. But it warned, "Fine-tuning of technology and processes to improve production and shorten the production cycles is a continuous practice in Nordic Aqua, and operational excellence and control will always be prioritized over advancing project development."

In addition, the company introduced a new branding strategy and logo which was shown during the results presentation. The commercial brand will be 'Nordic PureAtlantic'. Right now, the company is fully focused on launching its Chinese-produced Atlantic salmon into the Chinese market. For it, it will count on two recruits to its team: the new Group CFO, Tom Johan Austrheim - who will start during the first half of this year -, and the new Managing Director in China, Andreas Thorud.

The latter, who will start on April 1st, resigned from his previous position as Director of the Norwegian Seafood Council in China upon announcing his move to Nordic Aqua Partners. CEO Ragnar Joensen highlighted his extensive experience in Chinese business life. "We look forward to the start-up of Andreas Thorud," he said. "He has very strong relationships in the Chinese markets that we are looking forward to him bringing into our company so, we will build up a good relationship with the consumers."

About Nordic Aqua Partners

Nordic Aqua Partners is a Nordic land-based salmon farming company using cutting-edge Nordic technology and know-how to create the first fully integrated, commercial-scale RAS Atlantic salmon farm in China. The RAS fish farm is located on Gaotang Island in Xiangshan County of Ningbo Municipality, providing excellent logistics to Greater Shanghai and the rest of China. The site has the potential to accommodate an annual production capacity of 16,000 tons, with an option to expand to an annual capacity of 40,000 tons.