First Water, based in Iceland, has embarked on an ambitious project to enhance its land-based salmon farming operations in Þorlákshöfn. The latest investment round has secured €24M, marking another step toward advancing sustainable aquaculture in the region. With this funding, the company aims to increase its production capacity by developing new facilities designed to accommodate rising global demand for high-quality salmon.
Previously, First Water raised €39M in funding, which brought the attention of several Icelandic pension funds. Investment group Stoðir remains the largest shareholder. The company has secured €185M in equity and approximately €80M in construction financing from entities like Arion Bank and Landsbankinn, resulting in a total capital infusion of €265M. This series of investments underscores the growing interest and confidence in First Water’s innovative aquaculture approach.
How is the construction progressing?
First Water is nearing the completion of its first developmental phase in Þorlákshöfn. This stage involves the setup of eight closed land-based tanks stretching to 25 meters, alongside the commencement of harvesting and exporting salmon. Plans for the second phase include constructing 28-meter tanks, aiming to double their current annual production capacity from 5,000 to 10,000 HOG tons.
What makes their salmon distinctive?
The company recently began exporting 5 kg land-based salmon, tapping into existing high demand internationally. This venture allows First Water to provide a consistent, year-round supply of salmon to both the United States and European markets. Known for their quality, these salmon have already found buyers, solidifying First Water’s position in the market.
The processing and packaging of salmon for export occur at a dedicated facility in Þorlákshöfn, complementing the company’s innovative farming methods. Upon completion of the first two operational phases, the annual production is projected to reach 20,000 tonnes, with phase two anticipated to become fully operational by 2028.
“This capital increase marks an important milestone in First Water’s ongoing development in Þorlákshöfn,” stated Eggert Þór Kristófersson, CEO of First Water.
The response from customers to First Water’s 5 kg salmon has been notably positive. The success has encouraged the company to focus on the next phase of construction as well as securing long-term financing. Eggert Þór Kristófersson expressed enthusiasm over the strong demand, stating:
“Our experience with salmon farming in closed 25-meter tanks has been excellent, and customer response to our 5 kg salmon has far exceeded expectations.”
First Water’s consistent approach ties innovation in sustainable aquaculture with strategic market expansion efforts. The substantial investments drawn from both past and new stakeholders embody a promising outlook for the company and its stakeholders. The actions by First Water reflect broader trends within the aquaculture industry as more entities prioritize sustainability and operational efficiency.
