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Andfjord Salmon wants to increase the capacity of the facility it is building at Kvalnes. Graphic: Andfjord Salmon.
Andfjord Salmon wants to increase the capacity of the facility it is building at Kvalnes. Graphic: Andfjord Salmon.

Andfjord Salmon is planning to increase the capacity of the on-land farm it is building at Kvalnes on the Norwegian island of Andøya by more than 50% from 12,600 tonnes head on gutted (HOG) to 19,000 tonnes.

According to the company, this corresponds to a potential EBIT increase from approximately NOK 350 million (£30m) to NOK 500m (£43m) at full production.

The company is currently in the process of acquiring an additional 63,000 square metres of land to build extra pools, which would be the third phase of the development, it said in its report for the first quarter of 2021.

The site at Kvalnes: Phase 1 in green, phase 2 in blue and phase 3 in red. Click on image to enlarge. Graphic: Andfjord Salmon Q1 presentation.
The site at Kvalnes: Phase 1 in green, phase 2 in blue and phase 3 in red. Click on image to enlarge. Graphic: Andfjord Salmon Q1 presentation.

Delayed stocking

Phase 3 is dependent on approval by the board of directors and the ability to raise finance. If it goes ahead, Andfjord Salmon is likely to delay the stocking of the first pool (phase 1) from Q3 this year until Q2 next year to eliminate the risk that fish will suffer stress from noise and vibration from nearby construction work.

Construction requires blasting of the bedrock to create the holes for the huge tanks, which are below ground level and will operate on a flow-through system.

The first tank, with a capacity of 1,260 tonnes HOG, is complete and is ready for electrical work, and work has begun on preparing the ground for the nine tanks in phase 2. Phase 3 would add another six tanks.

However, it has been discovered that the outer section of the inlet pipe for the farm has been damaged and must be replaced. The company estimates that it will take approximately 8-10 weeks complete the repair at a cost of NOK 30m. This work has already started.

Andfjord Salmon sites: Kvalnes (1); Brievik (2); Fiskenes (3).Click on image to enlarge. Graphic: Andfjord Salmon Q1 presentation.
Andfjord Salmon sites: Kvalnes (1); Brievik (2); Fiskenes (3).Click on image to enlarge. Graphic: Andfjord Salmon Q1 presentation.

Other sites

“This has increased the relevance of starting Kvalnes phase 3 development now, because it will eliminate time constraints related to repair of the inlet pipeline,” said chief executive Martin Rasmussen.

The second phase involves the construction of another nine tanks, and the third phase would add six more.

Kvalnes is the first of three sites Andfjord Salmon plans to develop on Andøya. It has a purchase option for land at Breivik, a short distance to the north, and has bought land at Fiskenes, a little further away. Both have potential for up to 25,200 tonnes HOG but have not yet been fully approved for fish farming. A decision is expected by October.