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Feed producer Nutreco invests £1.65m in on-land salmon project

One of Andfjord Salmon's tanks under construction last year. The first tank has now been completed and tested. Photo: Andfjord Salmon.
One of Andfjord Salmon's tanks under construction last year. The first tank has now been completed and tested. Photo: Andfjord Salmon.

Feed manufacturer Nutreco and Norwegian seafood group Holmøy have agreed to invest in on-land fish farmer Andfjord Salmon as part of a NOK 38 million (£3.1m) private placement, Andfjord announced today.

Andfjord Salmon has also entered into an operational feed supply agreement with Nutreco’s aquaculture feed business, Skretting.

Netherlands-based Nutreco will pay NOK 20m (£1.65m) for 505,050 new shares in Andfjord Salmon, and Holmøy salmon farming subsidiary Eidsfjord Sjøfarm will pay NOK 8m for 202,020 new shares. Eidsfjord already owns 66,400 shares in Andfjord.

Founder investing NOK 10m

Andfjord Salmon’s founder and board member Roy Bernt Pettersen will contribute a further NOK 10m by subscribing for 252,525 new shares.

The proceeds of the private placement are intended to be used partly for funding the company’s expansion plan and general corporate purposes.

“Nutreco is a highly reputable player in the aquaculture space, investing in the industry, with Skretting supplying world-leading feed and services to aquaculture producers all over the world,” said Andfjord chief executive Martin Rasmussen in a market announcement.

“Holmøy is a highly respected Norwegian seafood group with strong local connection to Andfjord Salmon.

“We are delighted to enter into these agreements, which will bring on board two strategic investors to Andfjord Salmon and secure supply of our preferred feed.”

Andfjord Salmon's tanks are below sea level, which the company says means very little power is required to bring water from depth. Click image to enlarge. Illustration: Andfjord Salmon.
Andfjord Salmon's tanks are below sea level, which the company says means very little power is required to bring water from depth. Click image to enlarge. Illustration: Andfjord Salmon.

Energy efficiency

Andfjord Salmon uses a flow-through system in which seawater is collected from a depth of 160 metres using a patented system. The company’s salmon tanks at Kvalnes on the Norwegian island of Andøya are built into the ground, which means the seawater inlet is below sea level. This means there is very little energy required to lift the water. As the sea is warmed by the Gulf Stream, there is no requirement to heat the water either, says Andfjord.

Under the feed agreement, Skretting will supply a feed ailored to Andfjord Salmon’s flow-through technology to ensure optimal water quality, fish welfare and growth conditions in the tanks.

Supply volume will be adapted on an ongoing basis to Andfjord Salmon’s production volumes.

Skretting’s experts will also participate in a technical advisory committee, which will provide advice to Andfjord Salmon’s production protocols and regularly evaluate production KPIs with the objective of further improving conditions for the fish. 

Smolts in by June

Andfjord Salmon expects to stock begin stocking smolts in its first tank in the second quarter of this year. The pool, which is 20 metres deep, will hold more than 1,000 tonnes of salmon.

The company holds a licence to produce 12,600 gutted weight tonnes of Atlantic salmon at Kvalnes and has secured rights to land for a planned expansion of an additional 77,400 gwt production capacity at two other locations on Andøya. That expansion is subject to the zoning of the land and granting of licences.