Norwegian salmon producer Masoval is shelving development of its Aqua Semi closed-containment farm because Norway’s new aquaculture resource tax has rendered the project “economically non-viable," the company said.

Masoval is canceling the project and taking a one-time write-down from the investment amounting to NOK 45 million (€3.9 million/$4.2 million), the group said in its second quarter financial report on Tuesday.

In 2019, Masoval received four development licenses for the Aqua Semi project, which was designed to open up new areas for salmon farming, reduce sea lice and disease, improve fish health, and lower operational costs.