Salmon Evolution, one of Norway’s youngest aquaculture businesses, has entered into a Heads of Terms deal with Artec Aqua for the planning of the second phase of its land-based salmon farming project at Indre Harøy, Norway.
The farm is located north of the city of Bergen. Phase 2 will be broadly identical to phase 1, adding a further 7,900 tons (head on gutted) of annual production. This will bring the total planned production volume to 15,800 tons a year (HOG).
Artec Aqua is the turnkey supplier for Salmon Evolution’s phase 1 project at Indre Harøy where the first smolt is expected to be released next month and with the full facility currently expected to be completed by the end of the year.
The company said the purpose of the Heads of Terms agreement is to enable Salmon Evolution to be in a position to swiftly commence construction of phase 2 following the completion of phase 1.
Such a timeline requires significant preparatory activities, including but not limited to, planning, concept and detailed engineering and structuring of subcontractor tender processes, the company said.
The statement added that this preparatory phase will focus on leveraging the know-how and experiences gained from phase 1, facilitating implementation of identified areas of improvement, both from a biological, operational and financial perspective.
Given the timeline with first groundworks commencing after completion of phase 1, both companies expect to be able to implement lessons learned during the first 12 months of production.
Salmon Evolution CEO Mr. Håkon André Berg said: “As the phase 1 build out is now nearing completion, we are very pleased to start the preparations for phase 2 construction.
“Phase 2 will stand on the shoulders of a successful phase 1 ramp-up and together with Artec Aqua we expect to realize significant efficiency gains while at the same time being able to continue optimizing the facility.”
Ingjerd Eidsvik, the general manager of Artec Aqua, said it was very gratifying that Salmon Evolution had chosen her company, adding it was a recognition of its competence and ability to implement the development.
The final design and construction agreement is expected to be put into operation during first half of this year and will include financing reservations providing Salmon Evolution with the necessary flexibility to align the phase 2 build out with the Company’s overall financing plan, the company added.
Salmon Evolution AS was established in 2017.