AKVA group said a contract to design and deliver a smolt facility for Icelandic land-based salmon farmer Laxey has come into effect following the completion of financing for the project.
The contract was originally announced on 21 April but was conditional on Laxey securing the funding required for the development.
That condition was lifted on Tuesday after Laxey announced it had completed a €47 million equity raise and secured syndicated financing to support the next phase of its expansion in Vestmannaeyjar, Iceland.
AKVA said the total contract value is estimated at €28 million, with the first phase accounting for approximately €14.5 million.
The project relates to the design and delivery of a new smolt facility that forms part of Laxey’s wider land-based salmon farming development in the Westman Islands.
Laxey is targeting annual production of 35,000 tonnes HOG of Atlantic salmon through a six-phase expansion plan. The company recently secured fresh equity and debt financing to complete Grow-Out Section 3 and the first phase of Smolt Station II.
The new smolt station is expected to have an initial annual production capacity of five million smolts, with scope for expansion to as many as 15 million fish per year.