Andfjord Salmon secures NOK 700m loan to fund expansion

Land-based fish farmer Andfjord Salmon announced yesterday that it has secured loans totalling NOK 700 million (£52m) for the next stage of its development in the Nordland village of Kvalnes.

The facility is located on the island of Andøya in the Arctic archipelago of Vesterålen, with the first harvest due soon.

CEO Martin Rasmussen said: “Our plan has always been to use the first pool to prove the value of our flow-through technology before moving forward with financing for the next construction phase. We are very excited to deliver on this strategy.”

The loan was issued by SpareBank1 with partners including Eksfin at an interest rate corresponding to 3.9% plus Nibor.

Rasmussen said the finance arrangement represents a big step forward in the company’s expansion plans, and is based on excellent biological and operational results from its first pool.

For the build-out to 40,000 tonnes at Kvalnes, Andfjord Salmon is targeting a blended capex (capital expenditure) of NOK 114 per kg (including substantial buffers) and operating expenditures of NOK 40 per kilo salmon produced (including depreciation).

In this next construction stage, the company is planning to establish major infrastructure such as waterways and a harbour area to support 40,000 tonnes of production at Kvalnes.

The statement said: “Together with highly reputable construction partners Hæhre Kruse-Smith and Cflow, a budget of NOK 1,300m (£96m) plus a buffer of NOK 350m (£26m) has been estimated for the next two years.”

During a capital markets day this week the company said it had plans for a full production volume at the Kvalnes location by between 2025 and 2030.

Andfjord Salmon says it has developed an innovative and sustainable aquaculture concept for farming Atlantic salmon on land, based on a flow-through technology solution.

It has two other locations in Norway, which have the potential to produce up to a total of 50,000 tonnes of salmon.