Operational update: Strong progress at Kvalnes, key milestone approaching

11 March 2025

Andfjord Salmon Group AS (Andfjord Salmon) today provides an operational update, highlighting strong progress across all key workstreams at its land-based aquaculture facility at Kvalnes, Andøya.  

The waterway system, initially anticipated to be one of the most technically demanding aspects of the project, is now 98% complete. The tunnel system beneath the pool pits is finished, with only 6-7 meters remaining of the outlet waterway and approximately 70 meters left to complete the inlet waterway. Andfjord Salmon plans to execute the final breakthrough from the inlet/outlet tunnel to Andfjorden in Q2 2025. 

“Filling the tunnels with water for the first time will mark a significant milestone in preparing the facility for fish farming operations. This step brings us closer to realising our vision, and we look forward to achieving this important breakthrough,” says Martin Rasmussen, CEO of Andfjord Salmon.  

In this initial build-out phase, Andfjord Salmon is completing four new pools and developing a new harbour area. The pool construction is advancing in line with plans and has now reached 65% completion. Installation of the pools’ technical infrastructure is currently at 25% completion.    

The development of the harbour area is also progressing well, now 71% complete. A temporary breakwater has been constructed to shield ongoing construction work from waves and currents originating from Andfjorden. Once the harbour and port infrastructure are fully completed, the outer section of the breakwater will be removed, allowing vessels to enter and operate within the protected harbour. 

 “Construction activity is maintaining strong momentum, and we are in parallel beginning preparations for infrastructure testing. This marks an exciting phase in our development. We look forward to keeping our shareholders informed on our continued progress in the months ahead,” adds Martin Rasmussen. 

OPTIMIZED BUILD-OUT PLAN 

 On 26 February 2025, Andfjord Salmon announced that it had identified an optimized build-out plan that will enable a 20% increase in production capacity at its Kvalnes site. This is achieved through optimized pool utilization including the implementation of a more efficient and gentle fish logistics system and reinforced concrete walls to enhance water flow. This results in an expanded production capacity from 8,000 tons to up to 11,000 tons (HOG + post-smolt) for the current build-out phase (Phase 1) at Kvalnes. The total production volume under Andfjord Salmon's existing license at Kvalnes is expected to increase from 19,000 tons to 23,700 tons. 

Consequently, the company's blended capital expenditure (CAPEX) per kilogram at Kvalnes is estimated to be reduced from NOK 114/kg to NOK 105/kg. 

FINANCING 

Andfjord Salmon is now planning for immediate start of Phase 2a construction which will allow the company to benefit from construction synergies due to the continuous process across phases, e.g., through the retention of personnel and use of equipment already on-site, optimizing the resource usage and accelerate execution time. 

To support the advancement of the company’s Phase 2 construction at Kvalnes, optimization of fish logistics, and preparations for adherence to potential regulatory changes, Andfjord Salmon has recently raised significant funds, including: 

- Received a term sheet signed by the banks for a NOK 400 million construction loan. 

- Signed a term sheet for the sale of the Kvalnes harbour area, valued at approximately NOK 400 million, of which 200 MNOK will be used to reduce bank loan 

- Completed a NOK 600 million private placement of new shares. 

Further, a leasing facility of NOK 175 million is planned for certain equipment financing, and an overdraft facility of up to 60% of the borrowing base, which is expected to be finalized ahead of the first smolt release, is discussed but not yet committed. 

PRESENTATION TODAY AT 08:00 (CET) 

Andfjord Salmon will provide an operational update and present the company's optimized Kvalnes build-out plan at 08:00 today. The presentation will be held physically in Oslo and streamed to online viewers.  

Venue: Haakon VIIs gate 2, Vika, Oslo (Auditorium H2) 

The webcast presentation can also be viewed from this URL

The presentation material is enclosed to this announcement. 

CONTACTS‍

Bjarne Martinsen, CFO, +47 975 08 345, bjarne.martinsen@andfjord.no

Martin Rasmussen, CEO, +47 975 08 665, martin@andfjord.no‍

ABOUT ANDFJORD SALMON

Located at Andøya on the Arctic Archipelago of Vesterålen, Norway, Andfjord Salmon is developing the world’s most sustainable and fish-friendly aquaculture facility of its kind. Through a proprietary flow-through system, Andfjord Salmon combines the best from ocean and land-based salmon farming. In its first production cycle, the company achieved an industry-leading survival rate of 97.5 percent, feed conversion ratio of 1.05, superior share of 91.1 percent, and required 1 kWh to produce one kilo of salmon. Andfjord Salmon has identified a roadmap towards a production capacity of 40,000 tonnes HOG at Kvalnes, Andøya, and set a long-term ambition to reach 90,000 tonnes HOG across Kvalnes, Breivika and Fiskenes at Andøya.