Iceland's LAXEY Secures €6M Funding for Sustainable Land-Based Salmon Farming

Vestmannaeyjar, Iceland-based company LAXEY, which specializes in aquaculture, announced on Friday, July 5, that it has secured a €6 million equity private placement. This significant investment will be utilized to commence the construction of the second section of a 4,500-ton HOG land-based salmon production facility.

This latest funding round follows a successful €40 million private placement closed in April 2024 and has attracted substantial interest. Among the new investors are Farvatn Private Equity and Kontrari, two Norwegian family offices known for their expertise in seafood investments. These new investors join existing stakeholders and employees, contributing to the company's growth.

LAXEY's chairman of the board, Larus Asgeirsson, highlighted the importance of this investment, stating, "Continued demand from prominent investors reflects the quality and hard work in Laxey. Along with the commencement of construction for Section 2, we believe these investors bring experience and additional competence to our project." He further emphasized the project's progress by saying, "Now it is up to us to deliver on construction and farming. It is truly exciting to watch the daily progress of the project and with the first grow-out tanks being erected a few weeks ago we are on a good track to deliver the project on time."

According to the company, the development is proceeding as planned. The hatchery has been operational since November 2023, with the first two batches showing promising results. The facility is scheduled to be fully commissioned in July, boasting a capacity of 4 million 100g smolt per year.

The company also reported progress at the grow-out site, which employs a hybrid-flow-through technology. The first grow-out tanks were installed in late June, and the facility will be ready for smolt insertion by fall 2024.

LAXEY: Pioneering Sustainable Salmon Farming

Founded in 2019, LAXEY (formerly known as Icelandic Land Farmed Salmon) is a pioneering hybrid flow-through salmon farming project located on Vestmannaeyjar, also known as the Westman Islands. The company was established by a group of entrepreneurs led by a local family with over 75 years of experience in the seafood industry.

LAXEY aims to produce 27,000 HOG (Head On Gutted) tons of farmed Atlantic Salmon by 2031, with production spread across six construction phases. This ambitious goal is noteworthy, considering the current land-based salmon production in Iceland is less than 2,000 tons.

The company's operations are based on 100 percent renewable energy sources, with biological waste being recycled into fertilizers. The fish farm utilizes a hybrid flow-through system, where approximately 65 percent of the water is reused while the remaining 35 percent is fresh seawater, pumped from local boreholes, providing optimal water temperatures for salmon farming.

These advancements underline LAXEY's commitment to sustainable aquaculture and innovative approaches in fish farming. The company's focus on renewable energy and waste recycling not only positions it as a leader in the industry but also sets a benchmark for sustainable practices in aquaculture. As LAXEY continues to make strides in its development, the aquaculture sector will be closely watching its progress and contributions to sustainable seafood production.