SAMHERJI FISH FARMING SECURES FINANCING

Samherji Fish Farming Secures Financing for First Phase of Eldisgarður Land-Based Fish Farm

Samherji Fish Farming ehf., a subsidiary of Samherji hf., has successfully secured financing for the first phase of Eldisgarður, a new land-based fish farm located at the Reykjanes Power Plant.

The financing, which combines new share capital issuance and a syndicated loan, totals EUR 235 million (approximately ISK 34 billion). The project is expected to create 100 new jobs directly at the site, with an equal number of additional indirect jobs.

“It is immensely gratifying to have secured the financing for Eldisgarður,” says Þorsteinn Már Baldvinsson, CEO of Samherji hf. and Chairman of Samherji Aquaculture. “The participation of both domestic and international investors is a clear show of confidence in our vision. From the outset, we set a goal to attract external investment, and we have now achieved it. We believe land-based aquaculture can bring considerable economic prosperity to Iceland, much like the fishing industry has over the past decades.”

Strong Foundations in Öxarfjörður

The development of Eldisgarður builds on Samherji’s successful land-based farming operations in Öxarfjörður, where the company has invested over ISK 4 billion since 2023 to expand and implement new technologies. “The positive outcomes from Öxarfjörður strengthen our expectations for Eldisgarður,” says Þorsteinn Már Baldvinsson. “Our team has laid the groundwork for world-class land-based aquaculture, and I am incredibly proud of their efforts as we embark on this significant project.”

Eldisgarður: A Three-Phase Project

Groundwork at Eldisgarður began in October 2024. The land-based fish farm will be located in HS Orka’s resource park at the Reykjanes Power Plant.

Construction at Eldisgarður began in October 2024. Situated within HS Orka’s Resource Park, the farm will benefit from 100% renewable energy from the Reykjanes Power Plant. Eldisgarður will be developed in three phases. After the completion of the first phase, it will produce 10,000 tonnes of gutted salmon annually, reaching 30,000 tonnes upon full completion. Additionally, by-products from the production will support further value-creation initiatives within the Resource Park.

Strong Investor Interest

Financing for the first phase is structured through a EUR 125 million share capital increase in Samherji Fish Farming and a EUR 110 million syndicated loan. Samherji hf., which currently owns 99% of the subsidiary, is contributing approximately half of the share capital increase. New investors include AF3 slhf. (a private equity fund managed by Alfa Framtak ehf.), Dutch investment firm CCap, and Icelandic family-owned Snæból ehf. The syndicated loan is managed by Íslandsbanki, with participation from Landsbankinn, Nordea, and Norway’s Eksfin (Eksportfinansiering Norge).

Due to overwhelming interest, the share issuance has been expanded to help lay the foundation for future phases of development, with completion expected by the end of May. Íslandsbanki Corporate Finance and Arctic Securities of Oslo advised Samherji Aquaculture throughout the financing process.

Building on Decades of Expertise

Samherji Fish Farming has been engaged in land-based Arctic charr and salmon farming for two decades and is now the world’s largest Arctic charr producer, holding about 30% of the global market. Since 2002, it has produced over 60,000 gutted tonnes of salmon and Arctic charr. Recent expansions have boosted the company’s annual production capacity to 6,000 gutted tonnes.

The design of Eldisgarður emphasises operational simplicity, proven technology, and environmental responsibility. The farm will utilise geothermal seawater and warm seawater from the Reykjanes Power Plant’s cooling systems, resources that would otherwise be wasted.

Around 100 people will be employed at the new facility, primarily in knowledge-based roles, supported by the 120 specialists already employed by Samherji Aquaculture. The facility will feature a juvenile rearing centre, three grow-out units, and an integrated slaughterhouse.

Commitment to Sustainable Value Creation

“I am incredibly proud of our team for making this vision a reality,” says Jón Kjartan Jónsson, Managing Director of Samherji Aquaculture. “This project will generate new, knowledge-based jobs in Reykjanes and advance environmentally friendly, high-quality protein production.”

Gunnar Páll Tryggvason, Managing Director of Alfa Framtak ehf., echoes the optimism: “Land-based farming is becoming a vital part of Iceland’s economy. By leveraging renewable energy and decades of fishing industry experience, the sector is poised for significant growth. We are excited to support this project and work alongside Samherji’s outstanding team.”

CCap, one of the new investors, has a longstanding relationship with Samherji. Founders Jan and Anton van der Plas stated, “We have collaborated with Samherji’s management for many years in fishing and fish processing projects worldwide. Aquaculture represents a new and exciting chapter of our partnership.”

Jón Guðni Ómarsson, CEO of Íslandsbanki, added: “Leading the financing for Aquaculture Park aligns with our strategy of supporting long-term value creation in Icelandic businesses. We are proud to be part of this ambitious project.”

The Eldisgarður station is expected to begin operations in the first quarter of 2027.

Source

Main image: Around 100 people will work in Aquaculture Park, and the majority of them will be knowledge-based jobs, where there will be a strong emphasis on automation at the facility.

Images and video ©Samherji