October 28, 2024

By Gerelyn Terzo, Global AgInvesting Media

Icelandic-domiciled salmon farmer Laxey is advancing its sustainable, land-based aquaculture vision. With a view to build a fish farm on land in the Westman Islands to produce 32,000 tons of Atlantic salmon each year, Laxey has inked an agreement with German-based aquaculture company Baader for the delivery of processing equipment. Chief among the reasons Laxey chose Baader was its focus on quality and animal wellbeing, emphasizing its commitment to responsible food production amid a 100 percent fish utilization and zero waste strategy.

Both Laxey and Baader are looking to solidify their market positions in Iceland’s land-based aquaculture sector. Additionally, Laxey has set its sights on delivering its products to the international markets as it targets the production of 32,000 tons of salmon each year.

The company’s innovative hatchery is already operational, harnessing a recirculating aquaculture system (RAS) to maximize water reuse, raising the standard for Iceland’s fish farm standards. Laxey’s land-based grow-out facility will capture a flow-through system comprising roughly 65 percent water reuse, as seawater is pumped throughout the facility and purified before being poured back into the ocean, paving the way for optimal salmon growth in a sustainable way.

Iceland’s aquaculture industry dates back to the 1950s when small ponds and land-based tanks were used in an experimental fashion for the ocean ranching of Atlantic salmon. Since then, this market has ballooned, volatility notwithstanding, as farmed fish production hovered at 50,000 tons as of 2023, dominated by salmon production at close to 90 percent. The government of Iceland predicts that salmon production will maintain its position as the most important farmed species in the country for the foreseeable future.

On the partnership with Baader, Laxey Project Manager for Processing and Procurement Kristmann Kristmannsson stated, “We are excited about this partnership with Baader, a leader in technological solutions for the seafood industry. This agreement lays the foundation for a successful collaboration, and we expect it to be the start of a prosperous relationship that will help strengthen the Icelandic land-based aquaculture sector.”

Baader Iceland Sales Manager Karl Ásgeirsson commented, “We are proud to be part of this important project with Laxey. Our equipment will ensure they meet the strict quality requirements demanded by the international market.”

Additionally, Laxey recently announced financing that it secured with Arion Bank to support the Icelandic company’s plans to operate a land-based fish farm in Vestmannaeyjar. The financing is key for Laxey’s long-term operational plans as well as to support its ongoing growth. Laxey previously revealed it reached a power purchase agreement with the National Power Company of Iceland for its facility on the islands, the construction of which is expected to unfold through 2030.

Arion Bank Managing Director of Corporate Banking Rúnar Magni Jónsson said, “It is exciting to sign this agreement with Laxey and support the development of salmon farming in Vestmannaeyjar. Arion Bank has supported various projects in the fish farming sector across the country, which has now become a vital industry, not only for communities across Iceland but also for the national economy. Laxey’s plans are ambitious, and it will be exciting to follow the development ahead.”

Laxey’s Ásgeirsson said, “The collaboration with Arion Bank is a significant step toward strengthening our operations. With the support of Arion Bank, we can continue on our current path, build a new industry in Vestmannaeyjar and maintain our focus on environmentally friendly farming methods.”

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