Atlantic Sapphire looking for a buyer for former RAS site in Denmark

Atlantic Sapphire is looking for buyers for the site of its former salmon recirculating aquaculture system (RAS) in Denmark.

The site, which the company dubbed its Danish “Bluehouse” facility, was damaged in a fire on 15 September, 2021. The fire resulted in a total loss of its facility, and the company secured a cash settlement of DKK 180 million (then USD 25.5 million, EUR 24.1 million). Acording to a stock exchange filing at the time of the fire the book value of the facility was DKK 210 million (then USD 33 million, EUR 31.2 million) at the exchange rate as of September 2021 when the fire occurred.

The proceeds from the insurance payout were reinvested in its U.S. operations in Miami, Florida, U.S.A. where the company is pushing to optimize its existing salmon RAS facility to achieve steady-state production before launching construction on its second phase of that project. 

Now, according to Atlantic Sapphire Co-Founder Thue Holm, demolition of the leftovers at the company’s site in Denmark is nearing completion, and the company is looking for interested exploring opportunities at the site.

“Functional features like smolt production, water intake, storage, buffer tanks, a cooling system, and effluent treatment remain,” Holm wrote in a LinkedIn post. “The site is backed by a 6400 amps power supply and all required permits.”

Holm confirmed with SeafoodSource Atlantic Sapphire is planning to completely sell off the entire site, and is not looking to sell pieces of infrastructure piecemeal. Atlantic Sapphire, which has leased the site, has 17 years remaining on its contract, but according to Holm, the lease can be “renewed to a new 22-year contract.”

The company overall posted slightly increased revenue and lower losses in 2022, partially buoyed by the company’s Denmark operations seeing positive earnings due to the lack of operations and insurance settlements. Atlantic Sapphire’s Fish Farming Denmark division posted earnings before interest, taxes, depreciation, and amortization (EBITDA) of USD 37.9 million (EUR 34.4 million) for the year ending 31 December, 2022 compared to losses of USD 43.4 million (EUR 39.4 million) over the same period of the prior year.  

Photo courtesy of Thue Holm/Atlantic Sapphire