First Water Signs USD 5.77 Million Contract to Complete Phase 1 Expansion in Iceland

Norwegian company First Water announced that has signed a USD 5.77 million contract with precast concrete specialist Overhalla Betongbygg for the final part of Phase 1 of its land-based salmon farming facility in Þorlákshöfn, Iceland. The contract covers approximately 4,300 tons of precast concrete elements for eight large fish tanks. Each tank will measure 28 meters in diameter and 9.5 meters in height, with a capacity of around 5,600 m³ of water. Production will take place in Norway, with delivery to Iceland scheduled for early 2027.

Completion of Phase 1 will increase First Water’s annual production capacity from 5,000 to 10,000 tons of gutted salmon. The agreement represents another major step in First Water’s phased development and supports the company’s ambition to become a leading producer of sustainably farmed salmon.

“This is an important milestone in the development of our facility in Þorlákshöfn,” said Eggert Þór Kristófersson, CEO of the company. “First Water is being developed to set new standards for sustainable land-based salmon farming. The project is planned in six phases, with a long-term target of producing 60,000 tons annually,” he assured.

Detailed Coordination

First Water and Overhalla Betongbygg have worked closely to develop technical solutions suited to the scale and complexity of the project. The delivery requires detailed coordination across engineering, production, transport and installation.

“We are pleased to support First Water in the continued development of this pioneering project,” says Arnt Ove Amdal, CEO of Overhalla Betongbygg. “The contract demonstrates the value of combining strong industrial expertise with close collaboration.”

Ideal Growing Conditions for Salmon

Some weeks before the announcement, First Water held its Annual General Meeting, where the Chairman of the Board, Orri Hauksson, and the CEO reviewed the company’s current position. In January of this year, the company began harvesting and packing 5 kg gutted land-based salmon weekly for export from Þorlákshöfn.

Last year, the company invested around USD 115.33 million in property and equipment on Laxabraut, while total investment now amounts to approximately USD 265.27 million. The company has now completed the financing of its first permanent phase and will focus on completing that work this year and next, with the continued construction of 28-meter farming tanks.

They highlighted that there was a temporary decline in salmon sales last year as the company worked on growing larger salmon. However, they said, responses from foreign and domestic buyers indicate that sales are expected to increase significantly this year, as the 5 kg salmon is rated as a high-quality, superior-grade product by buyers.

The largest market areas for the company are in Europe are the United Kingdom and the Netherlands. First Water is also working with demanding buyers in Canada and the United States that serve canteens and restaurants operated on behalf of technology giants and investment banks.

Around 40% of the fish is sold to the United Kingdom, 23% to European Union countries, and around 28% goes to North America. A smaller portion of First Water’s salmon is furthermore sold on the domestic market.

Excellent Reviews

The salmon farmed and sold by First Water has received excellent reviews and is regarded as a high-quality product. The fish thrive exceptionally well in the 25 metre tanks, growth rates are strong, and mortality rates are among the lowest known. The key to this, in addition to the size of the tanks, is the unique water quality the salmon enjoy in the tanks.

The entrepreneurs who founded First Water believed that by using subterranean seawater that has passed through 10,000-year-old lava layers, they would obtain a high-quality fluid that creates ideal growing conditions for salmon. It has now become clear that the entrepreneurs were exactly right. Measurements of samples of so-called environmental DNA, or eDNA, taken in June 2025 by ÍSOR GeoSurvey and analysed by the independent research laboratory Matís, confirm these properties of the geothermal seawater.

First Water then treats the subterranean seawater from the tanks using the latest technology, so that discharge from First Water’s operations measures cleaner than the seawater in the Atlantic Ocean itself. This creates a sustainable and environmentally friendly cycle that delivers a high-quality product to consumers.

Looking ahead, further development is planned, with the aim of completing the first phase of the project by the end of 2027. This will increase the company’s capacity from 5,000 HoG tons of salmon to 10,000 HoG tons.