Gigante Salmon is looking forward to 2025, when it will move from the construction phase to full-scale production.
Photo: Gigante Salmon.
Norwegian land-based salmon farming company Gigante Salmon released its Q4 2024 results report in which it said the first harvest will arrive later this year, during Q2 2025. It also highlighted it is on track to reach a full production rate by 2026, with a gradual increase in harvests to reach a capacity of 16,000 HOG tons per year from 2028.
According to Gigante Salmon, the quarter was marked by good salmon growth in the first basin. The company said the average weight of the first smolt release is 2,700 grams, which, as said, puts it on track to begin harvests on schedule in Q2 2025.
"It has been a year since we started test production, and the fish is growing well with average weight approaching 3 kilograms," said CEO Kjell Lorentsen who, according to statements in the company's stock exchange release, is looking forward to it.
"2025 will be a pivotal year for Gigante Salmon, as we transition from the construction phase towards full scale production. The facility is designed to prioritise both fish welfare and economic efficiency and we make daily progress, strengthening our readiness for the full-capacity launch from 2026," he added.
Regarding the construction of the farming site on Lille Indre Rosøy, in Northern Norway, the company noted that during Q4 2024 shore power was established and connected through a submarine cable, all risers/seawater intakes were completed, and the drainage channels were cast.
The Gigante Salmon facility consists of three basins of which, as mentioned, one is already in production and on its way to the first harvest. While that is happening, as is usual at land-based facilities, the company continues with the construction of the next phases of the project.
Overall, the quarter was marked by significant progress in the construction of the two remaining basins, however, the salmon farmer also reported some difficulties.
In its stock exchange release, the Norwegian company said that, due to a prolonged period of bad weather, the installation of surface cladding on floors was not possible during Q4, and the completion of production pool 2 had been delayed.
Gigante Salmon added that this circumstance had also somewhat affected the progress of production pool 1. "Delays will normally result in increased costs," the release said.
The company's assessment of the overall project costs is that they will increase slightly compared to the Q3 report estimate but will remain within the established funding. Construction of production pool 2 is expected to be completed during Q1 2025 and production pool 1 is expected to be completed in the summer of 2025.
This is not the first time that Gigante Salmon has faced a delay in the construction of the site. In the third quarter of 2023, weather and, on that occasion, also logistics, delayed the construction of the smolt facility.
Likewise, this is not the first time it has reported cost increases. It did so in March last year, when the elevated expenses led to the termination of the employment agreement with former CEO Helge E. W. Albertsen, who was replaced by Kjell Lorentsen, and also to a new fundraising, successfully completed in July 2024.
As more immediate steps, Gigante Salmon, which aquaculture concept is based on a flow-through system, expects to harvest approximately 550 tons HOG in Q2 2025, before releasing an additional 2.2 million smolt during Q3.
As said above, the land-based salmon farmer expects to reach a full production rate by 2026, and gradually increase harvests to a capacity of 16,000 HOG tons per year starting in 2028.
