Extremely good water quality results in healthy fish
On the south coast of Iceland, First Water is building one of the world's largest land-based fish farms. By 2030, the company will produce 50,000 tonnes of salmon a year. “We have already had fish for over two years without disease,” says chief executive Eggert Thor Kristofersson.
Outside the town of Thorlakshofn on the south coast of Iceland, First Water is making good progress with the country’s largest private investment project. The construction of a comprehensive land-based aquaculture facility is divided into six phases, each with a production capacity of approximately 8,500 tonnes.
Chief executive Eggert Thor Kristofersson tells LandbasedAQ that the first phase should be completed by the end of the year, but that the company – formerly called Landeldi - has already been engaged in fish farming for several years.
“We are about 15% complete with the large construction project. Right now, 25 tanks out of 158 are ready, but we have had continuous harvesting since mid-2023,” says Kristofersson.
First Water’s project is one of three in a row along the coast, along with Thor Salmon (also known as Thor Landeldi) and GeoSalmo.
1,700 tonnes in 2024
Last year, the company harvested approximately 1,700 tonnes of salmon, which were mainly sold to the UK, Ireland, France and Germany. Currently, only small shipments go to the United States, but the plan is to export half of the production across the Atlantic once the large tanks are in place.
“This year we will produce 2,000 tonnes. Then 5,000–6,000 tonnes next year, and finally 8,500 tonnes in 2027,” says Kristofersson.
First Water will also continue the development of the next phases of the project. Phase 2 will start in November, and the plan is for the entire project to be completed between 2029 and 2030.
“We have already secured all the funds we need for phase one and almost all of phase two,” he says.
50,000-tonne target
When the project is completed, the facility will be able to produce 50,000 tonnes of salmon a year, and the company expects to have around 330 employees.
Although Iceland has a long tradition of fishing, Kristofersson is relatively new to the aquaculture industry. He started his career in the banking sector at Íslandsbanki and Glitnir, before moving on to become CEO of an Icelandic grocery and retail chain. He has led First Water since August 2022.
“I’m building a company that has gone from eight employees to around 70. We’re working on three major construction projects at any given time, while I’m talking to investors. It’s enough to keep your fingers crossed,” he says.
5kg fish soon
Nevertheless, he believes that the biggest challenge has been convincing investors that they can deliver 5kg salmon, which they see as the alpha and omega.
“If we can deliver fish of that size, then the investors are willing to enter into an agreement.”
So far, the average harvest weight has been 3.2kg, which Kristofersson believes is due to the size of the tanks. First Water started with 1,200 cubic metre tanks, then 3,500m³, and this year they will use tanks of 5,600m³.
“The next goal is to get 5kg fish from the 3,500m³ tanks. That will be a big milestone, because everyone is asking if we can produce it. We will soon be ready to deliver 5kg fish, maybe before September,” he says.
Extremely good water quality
First Water has had fish for over two years without disease and with a mortality rate of less than 3%. Kristofersson is proud of the company’s high quality standards.
“Even though the fish are a bit small, we have a superior share of 94%, and the taste is very good,” he says.
The plant uses a hybrid flow-through system. As its name suggests, First Water is particularly concerned with water quality.
“For over two years we have been testing the water quality, which is extremely good. We drill down to wells of seawater and pump up water that has been naturally filtered through lava rock. The geothermal heat in the ground keeps the water at a constant temperature between seven and nine degrees.”
While several other land-based fish farmers heat their seawater to 11-12°C, First Water has chosen to maintain the natural temperature of 8.3°C year-round.
“Our operations manager believes that you should not change what you get from nature. Some believe that keeping the temperature constant reduces biological risks. And although the fish grow faster in warm water, it can be a tough strain on the heart and liver.”
Not a micro-manager
Kristofersson describes himself as a leader who focuses on the big picture.
“I don’t do detailed management. I have a good team around me, and I trust them. Whether the employees work on the farm, in the office, in the processing plant or driving the truck, I try to spend at least one day a week walking around and talking to people. I think this is the best way to understand what they need, help them with their mindset and inspire them.”
He believes that good management is about having trust in employees.
“I can't work with people who have to be managed and followed up on all the time - it doesn’t work. That’s why I hire people with good qualities and strong character, and let them manage their areas of responsibility, while I keep my focus on the big picture.”
Minimising risk
Although the project has so far avoided major problems, Kristofersson knows that challenges will come.
“I know that problems will arise eventually, I just don't know when or what they will be. What I can do is minimise the risk,” he says, tapping the table.
Icelandic investors have supported the project, but foreign investors have been more sceptical. Kristofersson believes there is still some scepticism about the Icelandic aquaculture industry, which has struggled with disease and sea lice, but highlights that the island has some major advantages with its water quality and renewable energy.
“Our facility is only three kilometres from the port, where we can ship fish to Europe in three days and to the US in seven. We are extremely well located, both in terms of logistics and natural resources,” he concludes.