Thor Salmon's smolt facility will supply both external customers and its own food fish facility. The first fish will be transferred to the post-smolt tanks before the New Year.

Photo: Thor Salmon.

Thor Salmon sets its sights on growing 40,000 tonnes per year

The Icelandic fish farmer's first post-smolt tanks are due to be commissioned before the New Year. Construction will then continue in eight stages over the next decade.

Therese Soltveit Therese Soltveit Journalist & web editor, LandbasedAQ Norway

Published August 19, 2026 - 3:56 p.m.

Thor Salmon plans to transfer its first fish before year-end while working to double its licensed production capacity.

The company currently holds a licence to produce around 20,000 tonnes of salmon annually at its land-based facility in Torlakshavn, Iceland, and is now working to increase permission to around 40,000 tonnes.

“We expect this to be in place during the first half of 2027,” chief executive Steinthor Palsson told LandbasedAQ.

Chief executive Steinthor Palsson says that Thor Salmon expects to transfer the first fish to the new post-smolt tanks before the end of the year.

The project is planned in eight stages over the next decade, with each stage adding annual production capacity of approximately 5,000 tonnes.

Thor Salmon currently leases around 45 hectares (111 acres) from the local authority and has an option to lease a further 18 hectares.

First tanks before year-end

Current construction work includes six post-smolt tanks, each with a capacity of approximately 1,200 cubic metres, and eight larger grow-out tanks of around 5,500m³ each.

The walls of the post-smolt tanks are now in place, while the foundations for the first larger tanks are due to be poured this month.

Thor Salmon is expanding its land-based facility on the coast in Torlakshavn. The company leases around 45 hectares and has an option for an additional 18 hectares.

Thor Salmon has also drilled five production wells and plans to add another five this winter. Work is continuing on heating facilities, a power station, and other infrastructure required for production.

“We expect the post-smolt tanks to be commissioned towards the end of this year, followed by the larger tanks early next year,” Palsson said.

The first fish are due to be transferred from the smolt facility to the post-smolt tanks before the end of 2026. The two facilities are around 300 metres apart, allowing fish to be pumped directly from the freshwater tanks to the seawater tanks.

Once the current phase is complete, the facility will have more than 51,000m³ of tank capacity and annual production capacity of approximately 5,000 tonnes live weight equivalent.

Further tanks will be brought into operation progressively during spring 2027. Thor Salmon has previously said that its first harvest is expected towards the end of next year.

Delivering 1.5 million smolts

Thor Salmon made its first commercial delivery in May, when approximately 350,000 smolts were supplied to sea-based salmon farmer Kaldvik.

Following its latest scheduled deliveries, the company expects that by the end of next week it will have supplied around 1.5 million smolts since May. The fish have ranged in size from approximately 100 to 150 grams.

Customers include both sea-based and land-based salmon farmers in the surrounding area and the Westfjords. Smolts destined for the Westfjords were transported by wellboat.

When the deliveries scheduled for next week are completed, the company will have delivered around 1.5 million smolts since the first commercial delivery in May.

“We are pleased to see that the fish are performing and growing well at our customers’ sites,” Palsson said.

The smolt facility was commissioned in mid-2025 and reached full operation by the end of the year. It has capacity to produce around four million smolts annually.

According to Palsson, access to abundant groundwater, the technology used at the facility, and the expertise of its employees have contributed to good water quality, healthy fish, and strong biomass growth.

Workforce to reach 14

Thor Salmon will have 14 employees from September 1. The company intends to maintain a lean organisational structure, with several support services outsourced to external providers.

The workforce will be expanded gradually as production and construction progress.