Andfjord Salmon, which is building a land-based flowthrough salmon farm on the island of Andøya, Norway, is continuing to add capacity to its project, but also announced a delay in its smolt release due to complications arising from the COVID-19 pandemic.
The company’s compliance with measures put in place by the Norwegian government requiring mandatory quarantine for foreign employees, in addition to reduced capacity at the company’s suppliers, has “created uncertainty with regard to the original schedule,” according to CEO MAartin Rasmussen. As a result, it will delay the introduction of smolt into its first facility in Kvalnes until the spring of 2021, he said.
“The shift in time has completely insignificant financial consequences for the company. We could still hold on to smolt releases during the autumn of 2020, but we want to give our salmon the very best living conditions,” he said. “In addition, we will prioritize sufficient time for testing the finished plant. Our overall assessment is therefore that the release of smolts in the spring of 2021 is most beneficial for the company. Salmon living conditions are our highest priority.”
Rasmussen also announced an acceleration of the company's building plans, aided by an oversubscribed investment round completed in June, which brought in NOK 150 million (USD 15.5 million, EUR 13.8 million). The company also achieved listing on the Merkur Market, the Oslo Stock Exchange's alternative marketplace, providing it with further access to capital.
Initially slated to have 10,000 metric tons (MT) of production, Andfjord is now expanding its footprint to enlarge the Kvalnes site and develop two other production facilities on Andøya – at Fiskenes and Breivik. The construction of those facilities, which still need final permitting authorization from local authorities, will bring the company’s total production volume to 70,000 MT, with Kvalnes producing 30,000 MT and the other two sites producing 20,000 MT each.
A decision on the permits for the Breivik and Fiskenes sites is expected in early 2021, and the Kvalnes expansion is already underway, according to Andfjord Financing and Business Development Director Helge Krøgenes.
“The planning work was formally started with a planning notice in February 2020. A planning program has been prepared with a theme that will be impact assessed. This plan program was approved by the municipal council in Andøy municipality this June 2020,” Krøgenes said. “We experience great political goodwill for our further development plans, both locally and centrally. Submission of zoning proposals will be available towards the end of 2020, and the final decision on the zoning plan will take place in Andøy municipality in the new year 2021.”
As part of its scale-up, Andfjord has made three new hires: Petter Kristiansen, formerly of Nordlaks Produkter; Kjell Nilson, also from Nordlaks; and Svein Hansen, formerly of Cermaq. All three will work in operations, according to the company. More than 90 applicants vied for the three positions, according to Rasmussen.
“This shows us the Andfjord Salmon project is very attractive to potential employees, and are very happy with the expertise we have secured on Andøya,” he said.
Photo courtesy of Andfjord Salmon
