Andfjord Salmon stocks third pool at flow-through fish farm

Activity continues to increase at the Kvalnes facility on Andøya. As the land-based company approaches its first post-smolt delivery, the stocking of fish into another pool - its third to be brought into operation - is now under way.

The quarterly report and presentation for the first quarter describe continued high survival and strong growth in production at the plant.

Stocking 550,000 smolts

The new smolt release is taking place in pool K3, following testing of the laminar flow-through system and other infrastructure throughout April and May.

Around 550,000 smolts with an average weight of around 110–120 grams will be stocked in the pool. The entire volume is planned to be used for post-smolt production.

"The start of production in K3 represents a further scaling up of operations at Kvalnes, with more pools to come into operation later this year," says chief executive Martin Rasmussen.

In the presentation, the company writes that the plant is now approaching the next capacity milestone. Pools K0 and K1 are already in operation, while K2 and K4 are still planned to be operational during the second and third quarters of this year.

Once these pools are complete, the facility will have an annual production capacity of around 11,000 tonnes (head-on gutted) and post-smolts.

At the same time, fixed-price contracts have been signed for the construction of pools K5 and K7.

During the Q&A round, Rasmussen said that the company is already working on further optimisations before the next construction phase with K6 and K8.

Has invested NOK 3.34bn

At the end of the first quarter, around NOK 3.34 billion (£265.2 million) had been invested in the development at Kvalnes. In the long term, the plant is estimated to have a production potential of around 48,000 tonnes HOG.

The report also states that the waterways that will support production of up to 48,000 tonnes HOG have now been completed.

The production model is based on the inflow of Arctic seawater through tunnels directly from Andfjorden. The presentation describes this as a combination of the advantages of sea-based and land-based farming, with stable temperatures, oxygen-rich seawater, and the absence of sea lice and algae problems.

Rasmussen also said during the presentation that electricity consumption so far is around one kilowatt-hour per kilogram of salmon produced. According to the company, this is lower than previously assumed in the cost models.

First delivery approaching

The first delivery of post-smolts to Eidsfjord Sjøfarm is scheduled for mid-June, somewhat earlier than originally planned.

Approximately 450,000 post-smolts will be delivered from pool K1, while around 300,000 fish will remain to grow to harvest size.

According to the presentation, the post-smolts are expected to have an average weight of between 1.3 and 1.4 kilograms at the time of delivery.

“The first post-smolt sale is an important milestone because it shows how our infrastructure enables us to scale and optimise pool capacity and production. It shortens the path to revenue and improves our cash flow,” says Rasmussen.

It is also stated that around one million post-smolts have already been contracted to Eidsfjord Sjøfarm through 2026 and the first half of 2027.

During questions from analysts, Rasmussen described the post-smolt strategy as highly profitable, while also highlighting the flexibility of the model. Fish can either be sold as post-smolts or grown on to harvest size, depending on the market situation and capacity.

Promoting fish welfare

As of May 27, survival was 99.17% in pool K0 and 99.24% in K1. According to the presentation, the fish had been in the pools for eight and six and a half months, respectively.

The company highlights stable biological conditions, water quality, and efficient feed utilisation as important explanations for the results.

The presentation also compares survival with traditional sea farming in Norway. The company refers to figures from the Norwegian Veterinary Institute, which state an average survival of 85.8% in the sea phase in 2025.

The feed conversion ratio is stated at 1.03 in K0 and 0.93 in K1, while the company writes in the presentation that growth is above expectations.

The fish in K0 have reached an average weight of 2,102 grams, while the fish in K1 have exceeded 1,150 grams. The total standing biomass in the two pools is now 1,584 tonnes of live fish.

During the Q&A round, Rasmussen said that the biomass density in K1 is now over 41 kilograms per cubic metre, and that the company is aiming for 45–50 kilograms before post-smolt withdrawal.

He described this as an important level to test the capacity of the production model, while the company continues to see strong growth and good biological results.

Continued focus on technology

In parallel with the scale-up, further investments are being made in upgrades to sludge treatment, feed lines, and logistics systems to handle increasing production at the plant.

The company also states that new remotely operated vehicles are being used for sludge collection in the pools. According to the presentation, this will eliminate the need for one full-time position per pool related to sludge management.

Rasmussen also said that several optimisations have now been identified both through experience from the first production cycle in K0 in 2022/23 and from the first months of operation in K1.

Increased losses in the first quarter

Operating revenues in the first quarter ended at NOK 0.1 million, while net losses were NOK 23.9m, up from NOK 18m in the same period last year.

At the same time, the total bank facility has increased by NOK 200m to NOK 1.5 billion, according to the quarterly report. Of this, NOK 600m is still unused.

During the presentation, finance chief Bjarne Martinsen stated that the company expects the second quarter to be the first period with sales revenues from production at Kvalnes.