AKVA group is finally making a profit in land-based aquaculture, and customers are satisfied. But four years ago, the situation was entirely different, and CEO Knut Nesse had to make some critical decisions.
The company has been involved in land-based farming since its early days, investing significant resources into developing technology to ensure stable and profitable operations. However, four years ago, it faced a reality it could not ignore.
“Land-based aquaculture is pioneering work, and we knew that when we started. But things were moving in the wrong direction. Customers were not satisfied, and we were losing money. We had to rethink our approach and act accordingly,” he explains.
From Land Based 1.0 to 4.0
The first step was a complete restructuring of the land-based division. Expertise was consolidated at the company’s headquarters in Klepp, strengthening key areas such as research, logistics, and project planning. The goal was to build a stronger competence hub close to customers.
AKVA group’s headquarters in Klepp. Photo: AKVA group
“We needed a solid platform for further development, and we found it in Norway. AKVA group now has better control over the process and access to a broader knowledge base. We have brought together some of the world’s leading experts in RAS technology,” says Nesse.
Previously, development was characterised by a ‘learning by doing’ approach with varying quality, weak core expertise, and limited documentation.
“We call that period Land Based 1.0 because it marked the start of a new type of technology. At the time, we lacked sufficiently robust and well-documented solutions, and much of the technology was based on past project experience rather than systematic data. Our contracts with customers were also inadequate. This is often the case in early pioneering phases, but it is not sustainable in the long run,” Nesse explains.
A new strategy
The new strategy was built around what the company calls Land Based 2.0, where technology became scientifically documented, and RAS facilities became more predictable in operation. R&D was integrated into the development process.
“We had to transition from being a contractor-based supplier to an industrial player. This meant building expertise, improving our systems, developing a sustainable business model, and focusing on customer needs through service and strong follow-up. It wasn’t just about the technology - it was also about operations and company culture,” Nesse elaborates.
Land Based 4.0 – precision farming
The efforts have paid off, leading to more satisfied customers and a shift from red to black figures. While sea-based operations remain the company’s most profitable segment, Nesse is confident that both post-smolt and grow-out production will be crucial in meeting market demand for more salmon.
Looking ahead, he envisions what he calls Land Based 4.0, where turnkey RAS facilities are optimised for lower operational costs, improved fish health and biosecurity, and reduced water and energy consumption. This involves fully automated systems that enable continuous monitoring, data-driven optimisation, and simplified operations.
“We are now delivering a completely different level of quality, and customers see the difference. We have moved from selling basic systems to offering a complete solution that makes land-based farming more sustainable and profitable,” Nesse states.
With a stronger technological platform and a more solid competence base, the AKVA CEO sees significant opportunities for land-based aquaculture in the future.
“This journey has been costly, but we have learned a lot from the challenges of the past few years and emerged stronger. The future of land-based aquaculture looks bright, and we are ready to take a leading role in this development,” says Nesse.