
Annual report 2023
Extending the ocean potential 55
Summary and outlook
2023 marked a significant step towards
achieving the goal of profitable farming of
salmon on land with excellent biological
results.
In 2023 Salmon Evolution ended with over
2,200 tonnes of standing biomass and over 1.4
million individuals at Indre Harøy. The stocking
of the last part of batch 10, completed in early
January, set the conditions for steady state
production, and streamlined operations.
We have gradually been ramping up
production in 2023. A total of six batches was
stocked, and batch 2, 3 and 4 was harvested
in full.
The strong operational track record builds on
impressive biological results. In the second half
of 2023 the mortality rate was 2.6%, equalling
a yearly run-rate of 5.2%, and in the fourth
quarter 1.2 % equalling a yearly run-rate of
4.8%. This highlights that a running average
annual mortality rate of between 3-5 % is within
reach. This just after a mere two years in
operation, of which the last six months of 2023
at full industrial scale. The target of 3-5 % on an
annual basis is ambitious, and depend on a
number of factors, but primarily stocking
quality of smolt and maintaining excellent
conditions at Indre Harøy. Salmon Evolution will
not rest on this topic, biology comes first.
Salmon Evolution harvested a total of 1,874
tonnes (HOG) in 2023, of which 1,104 tonnes
(HOG) in the fourth quarter. The superior share
on harvested fish in 2023 was 92%. This
compares to our target of 95% which we deem
fully realistic based on historical performance
where for several quarters have achieved this
goal. Additionally, we have seen that the
spread in weight distribution on the harvested
fish is very tight, underlining that grading the
salmon when it is split is yielding the expected
results. Going forward gradually increasing
harvest weights are expected, which together
with further biomass build-up will set the stage
for a substantial increase in harvest volumes
from Q2 and onwards.
Overall, we are very satisfied with the
biological results seen in 2023 and see the
achieved results as a clear proof of concept
to our approach to land-based salmon
farming. In the fourth quarter another
milestone was reached as well, with the
farming segment reaching EBITDA breakeven,
underlining that farming costs are decreasing
on back of higher biomass production. It also
underlines the value of being able to tap into
a highly efficient value chain.
Access to an existing value chain is a key
reason why Salmon Evolution is targeting areas
with an established salmon farming industry for
its North America expansion. Mirroring the
approach for Indre Harøy in Norway, Salmon
Evolution sees a significant value in leveraging
existing aquaculture infrastructure and value
chains, enabling both scale and cost
leadership, as well as reducing operational
and biological risk.
Over the last three years global production of
Atlantic salmon has been decreasing. New
technology and production methods are
required to bridge the supply gap. According
to Kontali Analyse global supply growth in 2024
is forecasted to be a moderate 2 %. This in turn
indicates a tight market, supporting a scenario
with strong salmon prices going forward. This is
evidenced with the Fishpool forward price at
around NOK 100/kg on average for 2024.
Going into 2024 with a full farm, and on the
verge significantly increasing harvest volumes,
Salmon Evolution is in a solid position to benefit
on this over the coming quarters and years.
Salmon Evolution continues to see a significant
demand growth potential for salmon and