Salmon Evolution just four months away from releasing first smolts into tank

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Construction of Phase 1 at Indre Harøy progressing according to plan.

On Tuesday, Norwegian land-based salmon farming company, Salmon Evolution, released its results for Q3 2021.

According to a press release issued by the company total capital expenditures during the quarter were NOK 239 million (€24 million), of which NOK 230 million (€23 million) were investments related to the turnkey project with Artec Aqua at Indre Harøy. As per 30 September 2021, accumulated capex from project initiation in 2019 amounts to NOK 745 million (€75 million).

On 16 August 2021 Salmon Evolution announced the acquisition of smolt company Kraft Laks. Kraft Laks currently has an annual production capacity of around 1.8 million smolt but holds licenses to produce up to 5 million smolt per year subject to conditions. The acquisition secures access to quality smolt for Phase 1 at Indre Harøy in Norway.

Outlook
Salmon Evolution claims to be just four months away from releasing the first smolts into the fish tanks at Indre Harøy.

Since the groundwork at Indre Harøy started in May 2020, Phase 1 has developed according to plan, on time and on budget. Ten out of twelve fish tanks are now assembled, and the remaining two are expected to be completed in Q4 2021. In October Salmon Evolution also successfully installed the two water inlet pipes, and the full intake station is expected to be completed in Q4 2021. The company remains on track for the first smolt release which is scheduled for March 2022.

In a statement, CEO Håkon André Berg, said, “The company is now putting a lot of focus and attention into planning for production start. During Q3 2021 several new employees were enrolled. The company will continue to retain highly qualified operating personnel also in Q4, ensuring a well functioning operating organization in place well ahead of March 2022. In South Korea, the initial feasibility study was delivered in October and K Smart is now in the process of tuning the facility layout and production plans”.

Strategic partnership
In October, Salmon Evolution and Cargill entered into a strategic partnership with leading supplier of salmon feed Cargill.

Under the agreement, Cargill will supply 100 per cent of Salmon Evolution’s feed volumes for the Indre Harøy facility which is scheduled to commence production in March 2022.

Read more: Salmon Evolution and Cargill enter into strategic partnership for feed with $5m deal

In connection with the agreement, Cargill will also invest approximately US$5 million in Salmon Evolution, by way of a private placement of new shares to be issued, with a subscription price of NOK 7.71 per share which equals the volume weighted average price the last 20 trading days (the “Private Placement”). The proceeds from the Private Placement will be used for general corporate purposes including evaluation and development of future expansion opportunities, further underpinning Salmon Evolution’s strategy of taking a lead role in the global land-based salmon farming industry.