Salmon Evolution has announced the start of a process with the aim of expanding its farming operations into North America and at the same time raising its production capacity target to 100,000 tons HOG by 2032. The company expects the pre-construction phase to take 2 to 3 years, with construction expected to begin in 2025.
“Although starting in Norway, Salmon Evolution has always had global ambitions. With the addition of North America into our portfolio, we will have an operating platform on all the three major salmon consuming continents,” said Håkon André Berg, CEO of Salmon Evolution.
As part of this process that Salmon Evolution has initiated, the company is currently evaluating identified potential production sites in North America. In a press release, the Company has reported that expects to use the remainder of 2022 for such site selection and initial site verifications.
“Over the coming 12 months we expect to demonstrate the operational viability of our concept, solidifying Salmon Evolution’s global leadership position within the land-based salmon farming industry. Given the long lead times for this industry, we see it as critical for our long-term value creation to build and develop a tangible pipeline of high-quality projects,” Berg added.
Drawing on the experiences learned in Norway and Korea
It is expected that the pre-construction phase including regulatory approval processes will take 2-3 years, allowing for construction start during 2025, upon which the plan is to build a full scale 31,500 tons HOG ‘Indre Harøy’ facility, drawing on the experiences learned in both Norway and Korea.
To facilitate this expansion, the company has established a dedicated team of both in-house and external resources. Additionally, the company will establish a USA corporate structure under its full ownership.
The company’s strategy of pursuing accretive partnerships in overseas markets remains unchanged. As the project develops, Salmon Evolution aims to engage in partnership structures leveraging the Company’s human capital and maximizing shareholder value.
Extending the ocean’s potential
Let’s recall that Salmon Evolution is a Norwegian land-based salmon farming company targeting a production capacity of 100,000 tons HOG by 2032. The company’s core focus, according to them, is on extending the ocean’s potential by transferring the best preconditions offered by the sea to farm fish on land through its chosen hybrid flow-through system technology (HFS). This secures a truly sustainable production process with controlled and optimal growth conditions and limiting operational and biological risk.
The company’s first production facility is strategically located at Indre Harøy on the Norwegian west coast with unlimited access to fresh seawater, renewable energy, established infrastructure, and an educated and experienced work force. Phase 1 is already in operation and will have an annual capacity of 7,900 tons HOG at steady state. Fully developed, the Indre Harøy facility will have an annual capacity of 31,500 tons HOG.
The company that is listed on Oslo Børs under the ticker SALME, has also entered into a joint venture with Dongwon Industries where the parties will develop, construct and operate a land-based salmon farming facility in South Korea with an annual production capacity of 16,800 tons HOG, using Salmon Evolution’s chosen HFS technology.
Annual general meeting
A few days after the announcement, on 14th June, took place the annual general meeting of Salmon Evolution. The meeting was conducted as a virtual meeting, accessible online via Lumi AGM. All shareholders could be able to participate in the meeting, vote and ask questions from smartphones, tablets or desktop devices.
In the first quarter 2022, Salmon Evolution Capex’s amounted to 244 million. In addition, NOK 13.5 million of internal G&A were capitalized. Q1 2022 saw good progress at the construction site. Together with timing effects as to delivery dates of high value equipment, this contributed to the high Q1 Capex.