Salmon Evolution receives NOK 96.8 million funding commitment from Enova

OSLO: Salmon Evolution (SALME-ME) has been granted a funding commitment of NOK 96.8 million from the state-owned enterprise Enova SF, a news release said.

This commitment is a cash grant and the funding from Enova will not require any material additional investment needs from Salmon Evolution.

The funding support from Enova is related to the ongoing construction of Salmon Evolution’s fish farm at Indre Harøy in Hustadvika which in the first phase will produce approximately 9,000 tonnes annually. This energy-efficient fish farm, involving a hybrid flow-through system, is based on utilizing large amounts of fresh seawater to produce 36,000 tonnes of salmon per year when fully built out.

“With this funding support, Enova contributes to Salmon Evolution realizing tomorrow’s solutions for salmon farming. Our strategy of establishing a significant, low-emission salmon production on land, remains unchanged,” says CEO Håkon Andre Berg of Salmon Evolution.

The Norwegian Government’s ambition is to increase aquaculture production fivefold in 2050. At the same time, Norway aim to become a low-emission society with 90% lower greenhouse gas emissions. Hence, Enova helps the aquaculture industry to cut emissions and increase profitability with energy and climate measures.

“We believe that Enova’s contribution will further strengthen Norway’s position as a world-leading salmon producer,” Berg comments.

Enova SF is owned by the Ministry of Climate and Environment and contributes to reduced greenhouse gas emissions, development of energy and climate technology and a strengthened security of supply.

With the funding commitment from Enova, Salmon Evolution strengthens its financial position. The company has attracted NOK 810 million in equity 2020, in addition to NOK 50 million raised in 2019. Salmon Evolution is also currently working to secure a debt arrangement of NOK 396 million from a consortium of three banks. As of November 13th 2020 the company has cash holdings of NOK 677 million (NOK 3,08 per share) and NOK 40 million in debt to financial institutions.

Salmon Evolution is a land-based salmon farming business with its first production facility under construction at Indre Harøy in western Norway. This initial phase has an annual capacity of 9,000 tonnes of fish, rising ultimately to 36,000 tonnes.

The company will also jointly assess future opportunities for scaling similar projects in South Korea and other Asian and international markets.

Salmon Evolution’s medium- to long-term expansion plans envisage a total annual output of roughly 70,000 tonnes.

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