Faroe Island-based salmon farmer Bakkafrost has entered into an agreement to build a new recirculating aquaculture system (RAS) smolt hatchery in the southern parts of the Faroe Islands.

The Skalavik-located hatchery will produce around 6.5 million 500-gram smolt.

The 28,600 cubic meters hatchery will be financed within the group’s current financing facilities and is expected to be up and running in late 2026.

Once the Skalavik hatchery is completed, Bakkafrost’s annual smolt production capacity will be in excess of 24 million smolt.