SalMar expects serial production of offshore fish farming rigs: “Five to ten units in the first phase”

by
Aslak Berge

Considering placing rigs on both the east and west coasts of the United States.

SalMar elaborated on its aquaculture efforts during the company’s quarterly presentation on Thursday, where SalMar Ocean executive Olav Andreas Ervik said the company expects a series production of five to ten units in the first phase, reports TDN Direkt.

SalMar is not only considering sites in Norway. Ervik highlighted the east and west coast of the United States as possible locations, which will benefit from being close to end markets. Other possible areas are South America, Iceland and New Zealand.

Over two generations, 10,000 tonnes of salmon have been produced on the ocean rig “Ocean Farm 1”, which has provided valuable experiences. For serial production, reduced construction costs are expected.

For “Smart Fish Farm”, the first unit is expected to have an investment level of EUR 225 million, falling to EUR 147-200 million for additional units.

The production cost is expected at EUR 3.6 per kilo of salmon for the first unit, falling to EUR 3.3 at several units.

To TDN Direkt, SalMar CEO Gustav Witzøe said that he expects production start-up of “Smart Fish Farm” in the second quarter of 2024, based on approval of sites and volumes by summer 2021 and provided the company enters into a construction contract during the fourth quarter of this year.

On LinkedIn, Chairman Atle Eide wrote: “How long will it take for Salmar Ocean to build its 7th rig. Smart Fish Farm? Because then – with 7 units – Salmar Ocean will produce more salmon alone than SalMar does today. What an exciting journey this will be. Now only the government has to give the go-ahead to start work, which can also create thousands of jobs along the coast.”

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