Indre Harøy, Norway-headquartered Salmon Evolution AS has reported capex in line with budget and on-track performance for the first 300-gram smolt release at its land-based Atlantic salmon farm.
At the end of 2021, Salmon Evolution’s first tanks in its hybrid flow-through farming system were filled with seawater from a depth of 95 metres to start the commissioning phase of the project. Its 12 tanks, which measure 28 meters wide and 13 meters high, along with associated technical equipment, were given the technical go-ahead by the end of 2021. The release of the first salmon smolts into the farm will take place in March 2022 and the first harvest is expected towards the end of 2022, CEO Håkon André Berg told shareholders during a presentation of the company’s Q4 2021 results.
"2021 was a groundbreaking year for Salmon Evolution with tremendous efforts being undertaken by our employees and suppliers. We are truly excited about soon being able to welcome the first smolts into our facility at Indre Harøy,” Berg said. “We have spent a lot of time preparing for this historical event and I have great confidence in our organization as Salmon Evolution now enters the next phase."
The first phase of Salmon Evolution’s project is expected to produce 7,900 metric tons (MT) head-on, gutted (HOG) salmon per year. A similar tonnage is anticipated from a second farm adjacent to the first, which will be constructed by Artec Aqua 2024. Further expansion at Indre Harøy will allow expansion to 31,500 MT by 2028 and 50,000 MT by 2030, according to Berg.
The company reported available liquidity of NOK 983 million (USD 110.5 million) as of 31 December, 2021, including committed undrawn credit facilities. The company’s Q4 capital expenditure was NOK 215 million (24.2 million) and as of 31 December, 2021, accumulated capital expenditures from project initiation since 2019 amounted to NOK 920 million, plus capitalized general and administrative expenses and finance costs of NOK 51 million (5.7 million).
In Q4 2021, Salmon Evolution signed a strategic feed partnership with Cargill and entered into a green power purchase agreement with Statkraft for a supply of renewable-sourced electricity.
In October 2021, Cargill invested USD 5 million (EUR 4.3 million) in Salmon Evolution through a private placement, and in August 2021, Salmon Evolution AS acquired 100 percent of the shares in Kraft Laks AS, a family-owned smolt producer, for an agreed price of NOK 76.5 million (USD 8.6 million, EUR 7.3 million). A NOK 52 million (USD 5.85 million) debt-financing package was secured for Kraft Laks, which Salmon Evolution said would guarantee supplies of smolts for current and future developments.
Additionally, Berg said Salmon Evolution’s joint venture with Dongwon Industries to build and operate a flowthrough farm with an annual capacity of a 16,800 MT of HOG salmon in Yangyang, Gangwon-do, South Korea continues to move ahead and has a first grow-out production target of 2024.
Photo courtesy of Salmon Evolution
