Salmon Evolution's Håkon André Berg and Ingegjerd Eidsvik, chief executive of Artec Aqua, sign a heads of terms agreement for the second phase of the on-land salmon farm on Harøy Island. Photo: Salmon Evolution.

Salmon Evolution prepares for phase 2 of 31,500-tonne on-land farm

Salmon Evolution, which is developing an on-land salmon farm on Harøy Island (Indre Harøy) on the Norwegian coast, has signed a heads of terms (non-binding) agreement with contractor Artec Aqua for the planning of phase 2.

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The second phase is expected to in principle be identical to phase 1 and add a further 7,900 tonnes (head on gutted) of annual production, bringing the total planned production volume to 15,800 tonnes HOG.

Artec Aqua is the turnkey supplier for phase 1 of the project on Harøy, where the first smolts are expected to be stocked during March 2022 and the full facility is currently expected to be completed in Q4 2022.

The first tanks at Indre Harøy have been filled and systems are being tested prior to smolts being stocked next month. Photo: Salmon Evolution.

Significant preparation

Salmon Evolution said the new agreement will enable it to swiftly commence construction of phase 2 following the completion of phase 1. This will require significant preparatory activities, including planning, concept and detailed engineering and structuring of subcontractor tender processes.

The preparatory phase will also focus on leveraging the know-how and experiences gained from phase 1, facilitating implementation of identified areas of improvement, both from a biological, operational and financial perspective.

Salmon Evolution chief executive Håkon André Berg said: “As the phase 1 build out at Indre Harøy now is nearing completion, we are very pleased to start the preparations for phase 2 construction. Phase 2 will stand on the shoulders of a successful phase 1 ramp-up and together with Artec Aqua we expect to realise significant efficiency gains while at the same time being able to continue optimising the facility.”

£109-£117 million

The cost of phase 2 is currently estimated to NOK 1.3 – 1.4 billion, (£109 - £117 million), with a final capital expenditure target expected to be set in the second half of this year.

A final design and construction agreement is expected to be effectuated during first half of 2022 and will include financing reservations providing Salmon Evolution with the necessary flexibility to align the phase 2 build out with the company’s overall financing plan.

Salmon Evolution has a long-term plan to produce 31,500 gwt on salmon on the island and has also signed a joint venture agreement with South Korean seafood giant Dongwon Industries to build a 20,000-tonne salmon farm in South Korea.