UK salmon farming start-up Organic Sea Harvest (OSH) has been denied permission for a third farming site in Scotland.
OSH currently operates sites in northeast Skye, in Culnacnoc and Invertote, and had requested planning permission from the local Highland Council for a third site at Balmaqueen.
The site, consisting of twelve 120 meter cages, had £4 million (€4.5 million/$5.5 million) earmarked for salaries, equipment and stock.
"The Balmaqueen site could have ensured that OSH will be able to serve its local, as well as global, customers year-round," said OSH Founding Director, Alex MacInnes.
"This would have strengthened the possibility of building a strong brand and could have opened the opportunity to expand further into secondary processing on the Isle of Skye."
The company may seek a review of the decision or appeal to the Scottish Ministers.
OSH was officially incorporated in August 2015 and expects its first harvest this spring.
It currently employs 12 full-time staff members at two Skye sea sites, Culnacnoc and Invertote, and seven others attached to administrative functions.