Gigante Salmon on track to start salmon production at land-based facility this fall

Gigante Salmon, which is currently constructing a land-based salmon facility on Lille Indre Rosøya, Norway, said in its Q4 results that it is on track to start salmon production in September 2023.

Gigante Salmon is building a flow-through salmon aquaculture system that, at full production, is shooting for 20,000 metric tons (MT) of salmon per year. Construction work for the facility began in September 2021, and according to the company the basic work for production pool three is now complete, with required blasting and excavation finished. Installation work for pool three will start in Q1 2023 – in line with the company’s progress plan.

The company said that market challenges caused by the pandemic and Russia’s invasion of Ukraine have both resulted in increased equipment and material prices and longer delivery times. The company added that it has decided to change some of its construction plans, deciding that “walls and floors must be covered with concrete in addition to PE liners or membranes,” which it said will result in better fish health. Those steps will include additional costs not included in the original scope of work, and for now those costs will only affect pool three.

Because the company is still in its construction phase, the company reported no revenue in Q4 2022. Operating costs in Q4 were just under NOK 1.2 million (USD 114,800, EUR 108,300), up from NOK 568,000 (USD 54,300, EUR 51,300). Gigante Salmon reported its liquidity was NOK 182.1 million (USD 17.4 million, EUR 16.4 million) as of 31 December, 2022, which meant its ability to self-finance investments is “good.”

The company also entered into three separate agreements in Q4 2022, forming business relationships with Skretting, Xylem, and Infakon. The company announced a three-year agreement with Skretting on 17 October, 2022, with Gigante Salmon CEO Helge Albertsen citing the feed manufacturer’s focus on sustainability and fish health as reasons for the partnership. He added that the two companies share the “same values” in their work, and that Skretting is willing to focus on and contribute to processes at the facility level. 

“This is important to us. No two farms on land are exactly the same,” Albertsen said. “[All] facilities have different needs, and Skretting has what it takes to meet our need for both the best quality fish feed, but they will also be an important partner in fish health and sustainability.” 

The company also announced a partnership with Xylem on 7 November, 2022, for intake pumps at the flow-through facility. The contract was for four pumps to take in water, with the option to increase the order by a further seven pumps of the same type at a future date. The first four pumps are expected to be delivered on 1 April, 2023. 

Its partnership with Infrakon was announced on 23 December, 2022, and will cover the company’s concrete work needs at its facility. 

“Infrakon has exactly the expertise and experience that we want in our project, and the fact that they also have very good HSE statistics shows that we have a common focus on what is important to us,” Albertsen said.

Looking forward, the company’s Q4 report said it will complete all detailed engineering work during Q1 2023.  

Photo courtesy of Gigante Salmon