Iceland-Based First Water Signs Construction Agreement With Ístak to Complete the First Phase of Development in Þorlákshöfn

• Last year, the company became one of the first in the world to successfully produce and market land-based 5-kilogram gutted premium-quality salmon

Icelandic company First Water and construction contractor Ístak recently have signed an agreement for extensive construction work at First Water’s site in Þorlákshöfn. The project will complete the first phase of the company’s land-based salmon farming facility and double its annual production capacity from 5,000 to 10,000 tons of gutted salmon.

The project involves the construction of a tank and control building housing eight fish farming tanks, each with a capacity of approximately 5,500 cubic meters, together with associated technical equipment. Ístak will be responsible for the concrete works, structural steel erection and installation of the building’s exterior cladding. Construction is scheduled to begin shortly and is expected to take 16–18 months, with completion anticipated in the first quarter of 2028.

“The agreement with Ístak marks a major and important milestone in the development of First Water. This project will complete the first phase of our development and double our current production capacity. We are delighted to partner with a strong Icelandic construction company with extensive experience in delivering complex projects,” assured Einar Örn Ólafsson, CEO of First Water.

This is the first of six planned phases in the development of First Water’s land-based salmon farming facility in Þorlákshöfn, they explained after the agreement. The company’s long-term goal is to produce up to 60,000 HOG tons of salmon annually once the development has been fully completed.

First Harvest

First Water completed the construction of eight 25-meter covered land-based aquaculture tanks last year and harvested, for the first time, 5-kilogram gutted premium-quality salmon in September 2025. Regular harvesting began in January 2026, with 95% of the salmon graded as superior quality. First Water’s products are sold to customers in Europe and the United States.

For Karl Andreassen, CEO of Ístak, “First Water’s development is an ambitious and technically demanding project that is well aligned with Ístak experience and expertise. We are proud to be involved in this important phase and look forward to working closely with First Water on the project.”

New CEO for the Company

The company was very active this Summer, when Einar Örn Ólafsson was appointed as new CEO of First Water. The Board of Directors and the company’s Chief Executive Officer, Eggert Þór Kristófersson, have mutually agreed that Eggert Þór had to step down as CEO. According to the company, Örn Ólafsson brings decades of leadership experience in banking, corporate finance, aquaculture, and investments and will lead the company through its next phase of development.

“First Water has reached an important milestone and is entering an exciting new chapter. With the completion of the first phase next year, the company will be exceptionally well positioned, with double the production capacity, strong commercial partnerships and a premium product that is in demand in key export markets. As construction continues and production capacity expands, we expect a significant increase in export revenues, providing a strong foundation for the continued development of First Water’s operations in Þorlákshöfn. I look forward to building on the strong foundation that has been established and leading the company through its next phase of growth,” said Örn Ólafsson after the announcement.

The Board highlighted that, over the past four years, Eggert Þór has led one of Iceland’s most ambitious land-based aquaculture developments. During his tenure, First Water established its operations in Þorlákshöfn, secured financing for the first phase of its development, and achieved major milestones in the production and commercialization of premium land-based farmed salmon.

Orri Hauksson, Chairman of the Board of First Water, said: “I am delighted to welcome Einar Örn to First Water. He brings a broad range of executive experience across finance, investments and corporate leadership. He has also successfully led a salmon farming company and has a strong understanding of First Water’s business. The Board is confident that he is the right leader to guide the company through its next phase of growth.”

And he added that Kristófersson leaves the company well positioned for its next stage of growth. And he agreed: “With First Water entering its next phase of development, I feel this is the appropriate time to hand over the reins. I would like to thank the entire First Water team for their dedication and outstanding contribution. The expertise, commitment and professionalism they have built together are the foundation of the company’s success,” said Kristófersson.