January 9, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Norwegian, Swedish, Icelandic, and Dutch investors are backing Icelandic company GeoSalmo with €13.4 million (US$14.65 million) to fund the company’s building of a state-of-the-art hybrid, flow-through salmon farm in Ölfus, near Þorlákshöfn, one of the largest fresh fish export hubs in Iceland. 

A broad range of investors have come together to create a foundation from which the company can grow, including Skel Investment Company, Úthafsskip, the ownership group of seafood company Eskja, Norwegian industrial conglomerate Endúr ASA, and Dutch fish processing and distribution company Adri & Zoon.

With this support, GeoSalmo intends to become a leader in land-based fish farming in Iceland by creating operations that integrate ESG while maintaining a healthy environment for its farmed salmon. 

“This is a significant milestone for GeoSalmo and provides the company with the capital to take the next steps on its journey,” said Jens Þórðarson, CEO, GeoSalmo. “We are extremely pleased with the group of investors joining the project now, their experience and connections will benefit us greatly in the development of our company. This also demonstrates investor confidence in our vision for land-based farming, our technology, and our experienced team.”

Driven mainly by open-net fish farming in Icelandic waters, the country’s fish farming industry has seen meteoric growth in a relatively short span of time. Since 2016, the sector has grown at a CAGR of 35 percent with total production expectations for 2023 of 60,000 MT. However, this soaring growth was not met with an equal measure of direction or oversight, according to a report released in early 2023 that is prompting the Icelandic government to play catch up by proposing a comprehensive framework to place guardrails on the growth of the industry. 

The situation may also be a driver for the more recent emergence of land-based fish farming operations in the country. In early 2023 a company called Landseldi ehf., (or Deep Atlantic Salmon Project, in English) began a three-phase construction plan for what it stated would become the largest aquaculture facility in Iceland with a projected output of 40,000 tons of salmon per year. 

In the case of GeoSalmo, the company stated it has already completed environmental and planning assessments and has secured a long-term, 28 megawatt power supply agreement with Orka Náttúrunnar (ON Power) ensuring the necessary power for its entire operation. 

As its farming operations begin to take hold, the company explained that it will leverage proven aquaculture solutions that will be underpinned by the advantages provided by Icelandic nature. Additionally, the geographic proximity of the country will enable GeoSalmo to reach the massive North American and European markets by ship transport. 

As part of the funding round in support of this plan, there will be two new additions to the GeoSalmo Board of Directors: Pål Reiulf Olsen, chairman of Endúr and an experienced Norwegian director with ties to both aquaculture and financial markets, and Marinella Haraldsdóttir, CEO of Úthafsskip, will both be joining alongside Aðalsteinn Jóhannsson, the founder and key shareholder of GeoSalmo.

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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