Land-based salmon company breaks ground on new 7,500 ton facility
The farm and associated buildings are among the largest building projects ever undertaken by a private company in Iceland.
Icelandic land-based salmon farming startup GeoSalmo has commenced the construction of its farm near Þorlákshöfn, one of Iceland’s largest fresh fish export harbors.
The groundbreaking ceremony was marked by the presence of Sigurður Ingi Jóhannsson, Minister of Infrastructure, Guðrún Hafsteinsdóttir, Minister of Justice, and Hreiðar Hreiðarsson, Head of Aquaculture at GeoSalmo.
This new facility, located west of Þorlákshöfn, represents a significant step for GeoSalmo as it aims to start production in 2026. While the farm, along with its associated buildings, ranks among the largest private construction projects in Iceland. GeoSalmo’s facility is designed to produce up to 24,000 tons of salmon annually, with the first phase expected to yield about 7,500 tons and the first production projected for 2027.
Jens Þórðarson, CEO of GeoSalmo, highlighted the project’s importance: “The groundbreaking of our facility is a landmark moment. Land-based farming holds potential to become a key industry here,” he said. “We have worked tirelessly over the past two years to design and develop our new facility, making yesterday a joyous occasion for us.”
GeoSalmo’s project has garnered significant support, completing environmental and planning assessments and securing a long-term power supply agreement with Orka Náttúrunnar (ON Power) for 28 megawatts.
The company has also successfully closed a financing round with investors from Norway, Sweden, Iceland, and the Netherlands. Notable new investors include SKEL Investment Company, Úthafsskip, Eskja’s ownership group, Endúr ASA, and Adri & Zoon.
Guðrún Hafsteinsdóttir, Minister of Justice, emphasized the project’s broader impact: “This investment is crucial for Ölfus, boosting employment and local economic development. It’s more than a construction project; it’s about fostering a thriving community.”
Elliði Vignisson, Mayor of Ölfus, also expressed his support: “GeoSalmo’s new farm aligns with our commitment to eco-friendly food production. This venture represents a collaborative effort towards sustainable and responsible business practices. It’s a significant step for our community and the national economy.”