Iceland’s Samherji finalizes financing for large-scale land-based salmon farm.
Samherji Fish Farming, a subsidiary of Samherji hf., has completed financing for the first phase of its new land-based salmon farming facility, the Salmon Garden, located on Iceland’s Reykjanes Peninsula.
The financing package, totalling €235 million, comprises a €125 million equity private placement and a €110 million syndicated loan. Samherji hf. will contribute approximately half of the equity capital, while the remainder will come from a group of investors led by Icelandic private equity fund AF3 slhf., Dutch investment company CCap, and Icelandic family investment company Snaebol ehf. The loan is syndicated by Íslandsbanki, with participation from Landsbankinn, Nordea, and Norway’s Eksfin.
Construction of the facility, which began groundwork in October 2024, is located within HS Orka’s Resource Park and benefits from direct access to geothermal energy. The project will be developed in three phases, with an initial capacity of 10,000 tonnes of head-on gutted (HOG) salmon annually, scaling to 30,000 tonnes once fully operational. Production by-products will also be used for further value creation within the Resource Park.
Thorsteinn Már Baldvinsson, CEO of Samherji and Chairman of Samherji Fish Farming, said the strong participation of domestic and international investors reflects confidence in the project: “We expect land-based fish farming to bring significant value creation to the Icelandic economy, just as the fisheries industry has done for decades.”
The company said the Salmon Garden builds on operational experience gained at its land-based facility in Öxarfjördur, where it has invested €30 million since 2023 in pilot projects to validate new technologies.
Samherji Fish Farming, which has been producing salmon and Arctic char for over two decades, is currently the world’s largest producer of Arctic char, accounting for approximately 30% of global supply. Its existing facilities have a current production capacity of 6,000 tonnes HOG.
The first phase of the Salmon Garden project is expected to create around 100 direct jobs, primarily in knowledge-based roles, and a similar number of indirect jobs through associated services. The facility will include a freshwater recirculating aquaculture system (RAS) hatchery, an on-growing section with three stages, and a harvesting plant.
According to Jón Kjartan Jónsson, Managing Director of Samherji Fish Farming, the project will have a strong environmental focus, utilising renewable energy and aiming to minimise operational complexity: “This is a project on a massive scale that will positively impact the local community in Reykjanes. We are proud to create new jobs alongside increased value creation through environmentally friendly production of high-quality protein.”
Investor interest led Samherji to upsize the equity offering to accelerate the second phase of construction. The upsized round is expected to close before the summer.
Gunnar Páll Tryggvason, CEO of Alfa Framtak, said: “Land‑based aquaculture is rapidly emerging as an important industry for Iceland’s economy. By investing in Samherji Fish Farming, we benefit from Samherji’s deep heritage in commercial fishing and aquaculture.”
Jan and Anton van der Plas of CCap added: “We have worked with Samherji’s management for many years. The Salmon Garden is an exciting opportunity to expand that collaboration.”
The facility is scheduled to begin operations in the first quarter of 2027.
Arctic Securities and Íslandsbanki Corporate Finance acted as joint financial advisors to Samherji Fish Farming on the transaction.