Iceland-based seafood firm Samherji has expanded the amount of shares available for its planned land-based salmon farm in Reykjanes due to high demand.
The new farm, dubbed Eldisgarður, is being built across three separate phases and, when fully built, is slated to produce 36,000 metric tons (MT) of salmon. The financing for the first phase of the project was already completed in April, when the company managed to secure EUR 235 million (USD 272 million) in funding for the project.
According to Samherji, that Phase 1 funding consisted of the issuance of new shares in the company worth EUR 125 million (USD 144 million) and a syndicated loan of EUR 110 million (USD 127 million). However, the interest in the project was so great the company has since increased its share issuance to EUR 210 million (USD 243 million).
With the share issuance, the company said the total funding that will be available for Phase 1 of its project is now EUR 320 million (USD 371 million).
“The shareholders' equity contribution for the first two phases of Eldisgarður is now available, which allows Samherji Fish Farming to build the land-based farm faster than previously planned,” Samherji said. “This means that the company can immediately begin preparing the design and construction of the second phase of the facility.”
Samherji CEO and Samerhji Fish Farming Chair Thorsteinn Már Baldvinsson called the fact the new share issuance gained so much value for the project a declaration of trust for the company’s planned land-based salmon farm.
"Just like fishing and processing, land-based aquaculture is a field of knowledge that requires a lot of investment to create value,” Baldvinsson said. “The increased interest from investors in this project is a vote of confidence for Samherji Aquaculture and reflects their trust in Eldisgarður.”
Samherji has been working on the large land-based salmon-farming project since 2020, when it signed a letter of intent to purchase Norðurál's assets in Helguvík on the Reykjanes Peninsula. It then entered an agreement with power provider HS Orka for the development of the land-based salmon facility and, at the time, said access to the sea and the electricity required for, at most, a 40,000 MT Atlantic salmon farm were secured.
Since that time, the project has managed to garner interest from significant figures in the aquaculture industry, including former Mowi CEO Alf-Helge Aarskog.
“Accepting funds from investors comes with a lot of responsibility. They assume that we will stand behind it, and that is what we intend to do,” Baldvinsson said.
Samherji said a group of domestic and foreign investors proposed the share capital increase, including venture capital fund AF3 slhf.
The company already has experience with land-based fish farming and has successfully farmed both char and salmon on land for over two decades. Its expertise in farming char has made it the largest producer of the species in the world, with a market share of “around 30 percent,” it said.
Samherji said it estimates that its facility will be able to generate export revenues of EUR 300 million (USD 347 million) a year when complete.
