Iceland’s First Water nets €39M to promote sustainable salmon production; aims to add 330 new jobs

Iceland-based First Water, a company focused on land-based salmon farming in Þorlákshöfn, has completed a share capital increase of €39M. 

The round was led by existing shareholders including Stoðir hf., FW Horn slhf., Framherji ehf., Lífeyrissjóðurverslunarmanna, Brú lífeyrissjóður, Líra ehf., and LSR.

Before this capital raise, First Water secured €122M through equity investments. After adding the latest €39M, the company’s total equity funding has reached €161M. In addition, at the end of the previous year, the company obtained €80M in loans from Landsbankinn and Arion Bank. 

Altogether, First Water has raised about €240M from both equity and loans. So far, over €137M has been spent on the project.

Transforming the salmon farming industry

First Water, a company focused on land-based salmon farming, is advancing its operations in Þorlákshöfn, Iceland. Since its founding in 2017, the company has worked to develop a system that supports seafood production while reducing environmental impact.

The facility, located on Iceland’s southern coast, is being built in six phases. Once complete, it will have the capacity to produce around 50,000 tons of Head-On Gutted (HOG) salmon annually. The first phase is underway and is expected to yield 8,300 tons per year when completed. 

The full project is expected to require about €825M in funding and provide jobs for around 330 people once operational.

First Water uses Iceland’s natural resources, including renewable energy and clean seawater, to power and supply its operations. 

In 2022, the company signed a power agreement with Landsvirkjun for 20 megawatts of electricity. Plans are in place to expand this agreement to 50 megawatts once the Hvammsvirkjun hydropower station becomes operational. 

First Water also reached an agreement with Landsnet to secure power delivery to the site.

The company has taken several steps toward scaling its operations. In 2020, it finalised the Environmental Impact Assessment (EIA) for phase one and acquired a hatchery in Öxnalækur capable of producing 1.8 million smolts annually. The hatchery is located 20 kilometres from the main facility.

Construction of the grow-out facility began in 2021. In 2023, the Environmental Impact Assessment (EIA) for phases two through four was finalised, and First Water raised €94M through a private placement. The company also completed its first harvests in May and October 2023, producing a total of 370 tons of HOG Atlantic Salmon.

First Water continues to build toward full capacity, with operations expected to expand in line with its phased development plan.

Capital utilisation

The latest share capital increase will allow First Water to finish building the first of six planned phases at its salmon farming site in Þorlákshöfn. This step supports the company’s role in land-based salmon farming in Iceland. 

First Water focuses on production that aims to lower environmental impact and maintain consistent operational practices.

Eggert Þór Kristófersson, CEO of First Water, says, “This share increase is a powerful endorsement from our shareholders, who know us best. Their continued investment signals a strong belief in our team, our vision, and our ability to deliver results in sustainable aquaculture. It allows us to continue investing in the development of our operations in Þorlákshöfn and to accelerate the production of high-quality export products.”

“Our development plans are on track, and we expect to complete the first phase of the project this year. We’re seeing strong international interest in premium land-based salmon, produced for global markets using cutting-edge technology and a strong focus on sustainable use of natural resources.”

“Sustainability and strict quality control are the cornerstones of everything we do at First Water.  We are grateful for our shareholders’ strong support and excited about the opportunities ahead.”