September 14, 2023

Gigante Salmon invests US$18.8 million more in land-based salmon farm project

Norwegian aquaculture company Gigante Salmon has announced an additional investment of NOK 200 million (~US$18.8 million; NOK 10 = US$0.94) in its ongoing land-based Atlantic salmon farm construction, SeafoodSource reported.

Gigante Salmon, headquartered in Bodo, Norway, is in the process of establishing a flow-through salmon aquaculture system on Lille Indre Rosoya Island in Norway. The project, aimed at achieving an annual production capacity of 20,000 metric tonnes, initially estimated at NOK 645 million (~US$60.6 million), has seen its total cost increase due to several factors.

In a press release, the company said that the cost increase is caused by general price increases, in particular within electric power, in addition to changes that the company intends to make to secure fish welfare and accommodate sustainable production. The cost increase will be covered through a combination of equity and debt financing.

Gigante Salmon has also decided to postpone the release of its first smolt into the facility. Originally scheduled for October 2023, this milestone is now expected to occur in the fourth quarter of 2023. The delay is primarily due to the ongoing construction of the first production pool, with the company aiming to fill it with water by October.

Helge E W Albertsen, chief executive officer of Gigante Salmon, said that this delay will not affect the overall progress plan, with the first fish projected to be ready for slaughter by the end of 2024. Consequently, there will be no impact on the production volume.

Further details, particularly regarding project financing, will be provided by Gigante Salmon during its Q3 2023 results presentation, scheduled for October 24, 2023. Albertsen reiterated the company's commitment to ensuring the facility's readiness before commencing production, emphasising the importance of fish welfare as a top priority.

Construction of the Gigante Salmon facility commenced in September 2021, and the company announced key business agreements with Skretting, Xylem, and Infakon in 2022 as part of this ambitious aquaculture project.

-      SeafoodSource