Nordic Aqua is growing a lot of 7kg salmon without sexual maturation
The land-based farmer, which operates a RAS facility in Ningbo, China, produces fish with low mortality and minimal maturation. Now it is also doing it without geosmin taste in the fish, it says in its Q4 report.
Nordic Aqua Partners reports the following highlights from Q4 and beyond:
- Commercial harvest and sales resumed in mid-February with premium quality Atlantic salmon
- Good underlying operational and biological performance for all batches with excellent fish health and welfare
- Geosmin managed through the fourth quarter of 2024
- Documented ability to produce 7 kg of fish at scale without sexual maturation
- Construction of Phase 2 is on schedule
- Completed private placement of a total €30 million in the fourth quarter
- For 2024, the company harvested 523 gutted weight tonnes (0 tonnes in Q4), with an average slaughter weight of 4.54 kg (head on gutted) and a superior share of 99%.
“Nordic Aqua’s operations in the fourth quarter were impacted by the management of previous incidents with elevated geosmin levels, and no commercial harvests were conducted. To optimise the biomass stock, the company has removed 1,079 tonnes of live weight biomass during the quarter,” the company reported.
Production was affected by reduced feeding due to geosmin. Fish health and welfare were good, and mortality was low.
“Together with leading industry experts from AKVA group and others, Nordic Aqua has now resolved the operational challenges caused by geosmin through a number of operational and structural improvements. The facility is now fully operational and has reduced risk factors. Nordic Aqua thus enters 2025 with a strengthened production system, improved operational protocols and a commitment to delivering premium quality salmon under the Nordic PureAtlantic brand,” it said.
Production has now been restored, and the company resumed commercial harvest in February 2025.
Mortality below 1%
Nordic Aqua said the underlying operational and biological performance was good throughout the quarter, with good fish health and mortality below 1%.
“After operational adjustments and upgrades to the facility, the company has proven the ability to produce 7 kg fish at scale without sexual maturation.”
Total biomass increase in the quarter was 525 tonnes, somewhat affected by reduced feeding to optimise the stock. Total biomass was 2,232 tonnes at year-end.
“We are pleased that our Ningbo facility is back on track and stronger than ever. With comprehensive corrective measures in place, the Ningbo facility is now fully optimised for sustainable production of high-quality salmon,” said chief executive Ragnar Joensen in a comment.
“Nordic Aqua has re-entered the market with sales to former customers and partners. Market feedback has been positive and lays the foundation for further market development of Nordic PureAtlantic,” he added.
According to the company, the development of phase 2 continued as planned during the quarter. The first batch of ova was successfully completed in September 2024, and the project is on schedule for the first harvest in the third quarter of 2026.
Position strengthened
"To address operational challenges, Nordic Aqua has implemented a number of measures to reduce operational risk. The company enters 2025 with a strengthened production system, improved operational protocols and strong biological performance, with low mortality and increasing growth rates," it said.
Feeding levels are expected to normalise by March 2025, and the total harvest volume for the year is estimated at 3,500–3,700 tonnes.
The Phase 2 hatchery, starter feed, parr and smolt facility is complete and operational. Construction of the Phase 2 recirculating aquaculture system (RAS) units for growth is ongoing and the steel structure for the large building is well under way. The first ova for Phase 2 were successfully introduced in Q3 2024 and the batches for the Phase 2 expansion to 8,000 tonnes are progressing according to plan. The company is on track to carry out the first harvest from Phase 2 in Q3 2026.
On November 6, 2024, Nordic Aqua (Ningbo) Co., Ltd. signed a strategic cooperation agreement with Bank of China. The agreement includes refinancing of existing financing for Phase 1 and long-term financing for the development and construction of Nordic Aqua's facility in Gaotang, Ningbo, with a target annual harvesting capacity of 20,000 tonnes. The financing is subject to credit approval, which is expected in the second quarter of 2025 for Phases 1 and 2.
Limited biomass growth
Biomass increase in the fourth quarter of 2024 was 525 tonnes (469 tonnes), bringing total biomass to 2,233 tonnes (1,079 tonnes). This is a low level, but deliberately chosen due to reduced feeding to address the geosmin challenge.
Production in July and August 2024 was in line with an annual production rate of 4,000 tonnes, but was reduced from September to limit biomass growth due to the geosmin problem.
According to Nordic Aqua, biological performance remained strong, with good fish health and survival rates above expectations for all batches. Cumulative mortality from 150 g was 2.8% in batch 1, 2.4% in batch 2 and 1.7% in batch 3.
Mortality has also been low in the first quarter of 2025, and feeding levels began to increase in January and February.
Turnkey contract
The company says that all necessary land, infrastructure and operating facilities for the development of the project are being arranged by local authorities and made available to Nordic Aqua through long-term lease agreements with Xiangshan Strait Economic & Technological Cooperation Co., Ltd.
The contract with AKVA group for the delivery of the RAS system for phase 1 was a turnkey contract, meaning that the contract sum was fixed right up to installation, commissioning and handover.
For phase 2, the contract with AKVA group is based on a target cost agreement, which means that any changes in purchasing indices may affect the contract price.
"As the project has developed, Nordic Aqua, in collaboration with local authorities and AKVA group, has made some adjustments to the design of the plant and the RAS technology to optimise operations and investment costs (CAPEX)."
Total investment costs (CAPEX) for phase 2 are estimated at around €77 million. By the end of the fourth quarter, accumulated CAPEX for phase 2 had reached €17m. See the section below for improvement investments (CAPEX).
In the fourth quarter of 2024, Nordic Aqua entered into a 30-year lease agreement for land and production facilities, enabling an annual production capacity of 20,000 tonnes. A final investment decision is expected during the current year (2025).