AKVA group cancels RAS projects due to COVID-19 situation
A project to produce 8,000 tons in China and a supply contract with Cooke Aquaculture in Chile were cancelled.
AKVA group Land Based A/S, a wholly-owned subsidiary of AKVA group ASA, was the chosen technology supplier of the full grow-out RAS project for Atlantic Salmon to Nordic Aqua Partners in China. The project’s targeted harvest volumes are 8,000 tons in 2026 but its realization and AKVA’s delivery was dependent upon certain conditions to the project’s equity financing.
The value of AKVA’s delivery was estimated to be €44 million from 2020 to mid-2023. Further, AKVA would participate with €3,1 million in equity in the project. The initially committed equity financing has now been cancelled due to the COVID-19 situation and Nordic Aqua Partners will continue the process to have the project fully financed later this year.
The company had to cancel another project in South America due to the COVID-19 situation. AKVA group Chile S.A., another wholly-owned subsidiary of AKVA, entered in December 2019 into a sales and supply contract with Cooke Aquaculture Inc. for delivery of a RAS facility in Chile. The contract with a value of €10,3 million was expected to be delivered between Q1 2020 and Q4 2021. Cooke Aquaculture Inc. has now cancelled the contract due to the COVID-19 situation.