Construction costs for the land-based facility have risen by €17.4 million.
The board of Norwegian land-based salmon producer Gigante Salmon announced today an anticipated construction cost hike for its project in Rodoy, in the north of Norway
Anticipated costs have risen by approximately NOK 200 million (€17.4 million), according to a statement from the company on Thursday, pushing the total investment for the facility to an estimated NOK 645 million (€56 million) upon completion.
The construction cost increase is the result of general price increases, including energy, and modifications to improve fish welfare.
Gigante Salmon intends to finance this additional expense through a blend of equity and debt. More in-depth details regarding the financial strategy will be presented in their next quarterly update on Oct. 24, 2023.
CEO Helge E. W. Albertsen emphasized the company’s commitment to fish well-being. “When production commences, it’ll only be when the facility is completely ready. The welfare of our fish at our facility remains our topmost priority,” stated Albertsen.
Construction is expected to finish in early early October with the first release of smolt now planned for the forth quarter.
This delay will result in a production start featuring a larger smolt. Nevertheless, the company maintains that the first fish will be ready for harvest by the end of 2024, with no anticipated alterations to the production volume.
In its initial production phase, Gigante Salmon is targeting a production yield of 3,000 metric tons. By 2027, the company aspires to ramp up its production tenfold to reach 20,000 metric tons.
In addition to its Rodoy site Gigante also owns a facility on Feoya island in Gildeskal municipality.