Iceland’s Environmental and Natural Resources Board of Appeal has rescinded a 10,000-ton salmon farming license issued to Arnarlax in Ísafjarðardjúp.
The ruling found that the Icelandic Food and Veterinary Authority (MAST) failed to perform a thorough risk evaluation before granting the license in June 2024.
The license allowed for the farming of sterile salmon, but regulatory bodies have expressed concern over proximity-related risks, citing inadequate assessment of disease and parasite transmission risks.
The sites are located within 5 kilometers of each other, a threshold that mandates additional safeguards against potential disease spread. Maritime safety issues were also highlighted in the ruling, specifically regarding one of the three designated farming sites.
“This is unfortunate but will not affect our long-term guidance for production of fertile salmon on current licenses,” said Bjørn Hembre, CEO of Icelandic Salmon, the parent company of Arnarlax. “We are now reviewing the ruling and will work with MAST on the next steps.”
While this revocation will delay plans for Ísafjarðardjúp, Icelandic Salmon emphasized that operations had not yet commenced in the area, minimizing immediate operational impact.
“The ruling will have no effect on current operations or guidance,” the company noted in a press release on Tuesday, adding that it will collaborate with authorities to address the required risk assessment in hopes of securing a reissued license.
The setback for Arnarlax comes amid growing international attention on Iceland’s aquaculture sector, as demand for farmed salmon rises globally.