Iceland's Ölfus land-based salmon farming expands as two companies plan 100,000-tonne annual output

Icelandic media outlet mbl.is reported on 10 October 2026 that near Þorlákshöfn, First Water and Thor Salmon have begun construction of large land-based farming (landeldi) projects. According to the two companies' plans, their annual output of farmed salmon (eldislax) will eventually reach 100,000 tonnes.

Ölfus Cluster was founded in 2021 as a collaboration platform between local businesses, universities and research institutions, and the public sector. The platform's CEO, Páll Marvin Jónsson, said its work has evolved alongside major changes in the local industrial structure. He said a great deal is happening in Ölfus, and the platform's role is to support that development; the projects it is involved in span innovation and business incubation, research, tourism and the building of new industrial areas, among other things, seeking to find where the cluster can genuinely make an impact and move projects forward.

Land-based farming accounts for a growing share of industrial activity in Ölfus, and construction in the Hafnarsandur area has also influenced Ölfus Cluster's focus. The platform's project manager, Eva Lind Guðmundsdóttir, said the scale of the projects makes this area particularly noteworthy in terms of green industrial park (grænir iðngarðar) development. She said that when several large companies are building in the same area, it is no longer just a matter of looking at individual companies one by one; the entire area can be examined as a whole, in terms of infrastructure, resource use and the various flows that result.

This is precisely the basis of the current work on the Ölfus green industrial park. Eva Lind said they are studying industrial symbiosis (iðnaðarsamhverfa), for example whether heat or carbon dioxide from one production process can be used in another, and whether organic by-products can become raw material for new production. She said that for them, what is truly attractive is not only the farming industry itself, but also what can be built around it.

Water resources are one of the most important preconditions for land-based farming construction at Hafnarsandur, so understanding the local groundwater system is becoming increasingly important. This is where the Hydros Ölfus project comes in, which is dedicated to long-term monitoring of groundwater and to improving understanding of the interaction between local fresh water and seawater. Eva Lind said that if industrial activity that relies heavily on natural resources is to be built, it must be well understood; long-term data allow them to track changes and to base future decisions on knowledge.

Circular thinking is also reflected in other projects Ölfus Cluster is involved in. The cluster is one of the partners in the Terraforming LIFE project, whose work includes creating value from organic by-products of land-based farming and producing biogas and organic fertiliser. Eva Lind said this is a good example of how what was previously regarded mainly as waste can become raw material; such projects show what may become possible as the scale of industrial activity grows.

Although land-based farming is prominent among Ölfus Cluster's projects, the cluster's activities remain broader. Páll said innovation and business incubation are one of the main focuses. He said that for them, innovation is not just new ideas but also what is needed to turn an idea into an actual business; companies may need access to knowledge, partners, research or other support, and the platform can often help find the right path forward.

Ölfus Cluster is also involved in Uppspretta, an innovation festival in South Iceland, providing a platform for businesses, entrepreneurs and others working in innovation to exchange ideas and make new connections. Páll said they want to help create an environment that can generate jobs and give good ideas a chance to develop further, which applies both to innovation within established companies and to new projects or new companies just starting out.

Tourism is also part of Ölfus Cluster's work, and the cluster is also working to strengthen cooperation within the tourism sector. Páll said the breadth of industries is one of the region's strengths. He said they want to see Ölfus's diversified industries continue to develop, and what is particularly exciting right now is that many different changes are happening at the same time; the farming industry is an important part of this development, but far from the only part.

Eva Lind said the next steps in building the green industrial park may be particularly worth watching. She said a great deal of construction and various different operations are currently taking shape in the same area, and the next task is to see whether this proximity can be put to better use; if genuine connections can be established between companies so that resources and by-products are used between them, then the circular economy begins to become actual industrial activity.

Páll said this fits well with the vision Ölfus Cluster follows. He said they want Ölfus to be a place where companies see opportunities to build operations, develop new ideas and grow, and the platform's task is to help create such conditions.