“Everything we need to ramp up pool construction is now in place," said Andfjord Salmon CEO Martin Rasmussen.
Photo: Andfjord Salmon.
Norway's Andfjord Salmon Group AS (Andfjord Salmon) is making substantial headway in its ongoing build-out of its flow-through aquaculture facility at Kvalnes, Andøya, according to the company's recently-released second quarter results.
"Just before the summer we reported faster than expected progress for the development of our waterways. I am pleased to share today that the performance has been equally strong throughout August, following scheduled reduced activity in July. The waterways are the arteries that supply water to the flow-through systems in our pools, so they are key to our expansion,” said Martin Rasmussen, CEO of Andfjord Salmon, presenting the results.
The current phase of the Kvalnes build-out includes the completion of four new pools, which will increase Andfjord Salmon’s total production capacity to 8,000 tonnes HOG (Head On Gutted) by 2025. This phase also involves developing shared infrastructure, such as the waterways and a harbour area, which will ultimately support a future production capacity of 40,000 tonnes of salmon at the site.
The company reports that as of 3 September 2024, the waterway systems, including the inlet and outlet tunnels, have reached 73% completion, up from 57% in early July. Once completed, the total length of the waterways at the site will be 4.4 km, with current progress reaching 3.2 km.
The Kvalnes harbour area, another key project workstream, is 48% complete as of September, up from 42% in July. Meanwhile, pool construction has also progressed, reaching 12% completion, up from 8% earlier in the summer. Concrete elements for the pools are being produced on-site, utilizing materials sourced from the pool pits and tunnels, which the company says will reduce both costs and emissions associated with the build-out.
“Everything we need to ramp up pool construction is now in place. We expect to significantly increase the production of concrete elements in September and anticipate an uptick in pool construction in the coming months,” added Rasmussen.
Since Andfjord Salmon is currently focused on expanding its Kvalnes facility, no salmon production occurred in the second quarter of 2024. The company reported a loss of NOK 18.8 million (EUR 1.64m / USD 1.77m), compared to NOK 18.2 million in the second quarter of 2023.
In May 2024, Andfjord Salmon raised NOK 350 million through a private placement, driven by solid construction progress, strong biological results in its first production cycle, and the prospect of generating additional revenue from surplus pool capacity by producing post-smolt.
The private placement saw investments from existing shareholders, including the company’s largest shareholder, Jerónimo Martins Agro-Alimentar S.A., and Eidsfjord Sjøfarm AS/Holmøy Havbruk AS.
High Liner Foods Incorporated, a leading seafood processor in North America, also invested USD 10 million, becoming a new shareholder in Andfjord Salmon.
