Andfjord Salmon AS, which has developed a patented aquaculture concept for land-based farming of Atlantic salmon, announced 12 March the company remains on track with its Kvalnes development following ongoing de-risking of the project, which started in Q4 2020.
The de-risking saw Andfjord change from undertaking a sequential development at Kvalnes to a parallel development of the full area. The aim was to fast-track production capacity from 1,260 metric tons (MT) head-on gutted (HOG) salmon to 12,600 MT.
“The decision we made in December to fast-track development of the full Kvalnes area reduces risk for the area development, and biological risk for the start pool,” Andfjord Salmon CEO Martin Rasmussen said. “This year’s successful hook-up of water inlet and outlet pipelines for the first pool has further de-risked the entire project. We are pleased with the progress we are making.”
Rasmussen said speeding up development would result in a considerable saving on expenses related to de-mobilization and mobilization of excavation and construction machinery, and would not otherwise affect total capex. A successful private placement was initiated in late 2020 to raise NOK 88.2 million (USD 10.4 million) for the building work.
Highlights of the first quarter of 2021, included completion of the first pool and flow-through system, which is now fully connected to the sea. Electrical and automation installations are being finalised, and it is anticipated that the pool will be ready for testing in Q2 2021, with first smolts on site in Q3.
“Utilizing a continuous stream of fresh seawater from the surrounding Andfjorden is a key element of creating optimal living conditions for our salmon. We are on track to build the world's most fish-friendly and sustainable aquaculture facility of its kind,” Rasmussen said.
At year-end 2020, Andfjord Salmon held cash or cash equivalents of NOK 148.8 million (USD 17.6 million), not including a NOK 50 million (USD 6 million) undrawn credit facility, or NOK 15 million (USD 1.8 million) in available grants.
Andfjord Salmon is currently pre-revenue, and registered an operating loss of NOK 7.1 million (USD 839,000) in the fourth quarter 2020, compared to an operating loss of NOK 2.9 million (USD 343,000) in Q4 2019.
Operating profit for the full year 2020 showed a loss of NOK 19.6 million (USD 2.3 million), compared with a loss of NOK 8.3 million (USD 980,000) in 2019.
Asked about potential future markets for the fish, Rasmussen told SeafoodSource that Andfjord had received interest from both retail and foodservice sectors.
“We are quite positive about opportunities for the future of our premium salmon,” he said.
Photo courtesy of Andfjord Salmon
