A land-based salmon farming operation planned for Sweden is searching for additional capital, hoping to raise SEK 2.3 billion (€143 million/$235 million) in total to finance the project.
The group, Re:Ocean, which is in the process of changing its name from Premium Svensk Lax, is planning a 58,000-square-meter farm in Saffle, Sweden, to produce 10,000 metric tons of salmon per year.
The company hopes to raise SEK1.5 billion ($154 million/€143 million) in the current round, which should allow it to raise around 5,000 metric tons of fish, according to CEO Morten Malle.
The remainder will be bank financed.
It's unclear how much the project has raised thus far, though Malle said the company has "secured a good part" of the current SEK 1.5 billion round, and it has "a high degree of equity."
Malle said private Swedish investors and private family funds have put money into the operation so far.
In addition, in 2020 Norwegian equipment supplier Akva said it would invest up to NOK 30 million (€2.7 million/$3.3 million) in equity into the group, if necessary financing for the project came through and companies agree on a final delivery contract.
In announcing the new fundraising effort Tuesday, Re:Ocean said three of Scandinavia's largest retail groups have "backed" the project, though Malle told IntraFish there are no financial commitments from the retailers.
Two of the retailers -- Axfood and ICA -- endorsed land-based salmon farming in the release announcing the capital raise.
ICA Sweden CEO Anders Svensson said the Re:Ocean project "is a very timely investment and a step in the right direction for strengthened Swedish self-sufficiency."
Malle said the retailer's support is "a clear commitment that our products will be in their stores."
RE:Ocean's management has been involved in other land-based projects as well. Malle was a former chief technical officer and advisor at Vikings Label, which is planning RAS salmon farms for Norway and Saudi Arabia.
Prior to that he was managing director of Denmark-based Graakjaer Aqua, which provided land-based equipment and design.
Re:Ocean said Tuesday construction will begin in 2023. It expects full production in 2026.
Re:Ocean isn't the only company planning a land-based salmon farming operation in the country.
Quality Salmon is planning to produce 100,000 metric tons of salmon by 2027 in the country's Sotenas municipality, though it's faced recent delays, including findings of pre-historic artifacts on the construction site.
Another producer, Smogenlax, has worked with Ikea-backed foundation Kamprand and Gothenburg University on a pilot project. Others have announced intentions to build in the country.
Re:Ocean's capital raise comes at a time when money seems to be drying up for some land-based salmon projects, while others are revising timelines to push back their ambitions.
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