Photo: Andfjord Salmon
Andfjord Salmon Group has reported strong operational progress at its land-based flow-through aquaculture facility at Kvalnes, Andøya, as construction work on several critical infrastructure components nears completion.
The company's latest operational update, issued this week, highlights that 98% of the waterway system, one of the project’s most technically complex elements, is now completed. The tunnel system beneath the pool pits has been finalized, with only minor segments of the waterways remaining. A final breakthrough to the Andfjorden fjord is scheduled for Q2 2025, the company said.
"Filling the tunnels with water for the first time will mark a significant
milestone in preparing the facility for fish farming operations. This step
brings us closer to realising our vision, and we look forward to achieving this important breakthrough," said Martin Rasmussen, CEO of Andfjord Salmon, in a press release.
In the first phase of the build-out, Andfjord Salmon is constructing four new pools and developing a new harbour area. The company reports that the pools are now 65% complete, with technical infrastructure installation at 25%. Meanwhile, the harbour development is progressing rapidly, now 71% finished. A temporary breakwater has been erected to protect ongoing construction from rough sea conditions, and it will be partially removed once the harbour is fully operational.
“Construction activity is maintaining strong momentum, and we are in parallel beginning preparations for infrastructure testing. This marks an exciting phase in our development. We look forward to keeping our shareholders informed on our continued progress in the months ahead," Rasmussen added.
Andfjord Salmon stated it is now planning for "immediate start" of its Phase 2a construction, explaining this "will allow the company to benefit from construction synergies due to the continuous process across phases", including personnel and equipment.
The company also recently announced a revised build-out plan that will increase production capacity at the Kvalnes site by 20%. By optimizing pool usage, improving fish logistics, and reinforcing pool structures for enhanced water flow, the production capacity for Phase 1 is now expected to reach up to 11,000 tons (HOG + post-smolt), up from 8,000 tons.
The total licensed production capacity at Kvalnes is thus set to rise from 19,000 tons to 23,700 tons, the company stated, adding that the improved efficiency is expected to reduce the company’s capital expenditure per kilogram from NOK 114 to NOK 105.
Andfjord Salmon has recently secured significant new funding, including a private placement of new shares at the end of February, valued at NOK 600 million, which the company said will "support the advancement of the company's Phase 2 construction at Kvalnes, optimization of fish logistics, and preparations for adherence to potential regulatory changes".
The company has also secured a signed term sheet for a NOK 400 million construction loan, and entered into an agreement for the sale of the Kvalnes harbour area, valued at approximately NOK 400 million, with NOK 200 million allocated to reduce the bank loan.
Andfjord also confirmed that it is currently discussing a NOK 175 million leasing facility for equipment and an overdraft facility covering up to 60% of the borrowing base, which it expects to finalize ahead of its first smolt release.
