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As the results of the Norway's 2024 production capacity permit auction are in and as always, there's some interesting insights to look into. This bi-annual event, sets the stage for significant shifts in production capabilities across the sector of new biomass permits allocated to green production areas in Norway. With this year's auction results now unveiled, we decided to explore further into the data spanning from 2018 to the present, providing a comprehensive analysis beyond just 2024.
Breaking Down the 2024 Auction Results
This year the total production capacity auctioned off was 17,330 tonnes, bringing in a total of 5,288,602,600 NOK, with companies spending an average of 319,999 price per tonne. Mowi clearly stands out from this years auction, managing to secure their total capacity of 2,704 tonnes at the lowest price per tonne of all companies in 2024 at 245,782 NOK.
Timeline of Auction Winners (2018 - 2024)
To understand the broader trends, let's examine a timeline overview of the top farms that purchased at auctions from 2018 to 2024.
Since the inception of the auction, it's key to note that several top farms are securing significant capacity from these auctions. Among the notable names, Mowi, SalMar, and Cermaq emerge as leading bidders. These companies have consistently shown strong presence in their additional capacity investments.
SalMar: The Leading Capacity Buyer
SalMar has purchased the most capacity since the auction launched in 2018, with a total of 14,523 tonnes at an average price of 164,750 NOK per tonne. This aggressive acquisition strategy underscores SalMar's commitment to maintaining and expanding its market share.
Dominance of Top Three Players
SalMar, Cermaq, and Mowi collectively account for 40.72% of all capacity purchased from 2018 to 2024. This concentration of capacity among the top players highlights their dominant position in the market and their ability to influence industry trends.
Long-Term Trends: 2018 - 2024
Looking beyond the 2024 auction, it’s crucial to consider the aggregate data from 2018 to 2024. This broader analysis helps us identify long-term trends and the strategies employed by the top 10 farms over the years. By aggregating the total capacity purchased and analyzing price trends, we gain deeper insights into the evolving landscape of Norwegian producers.
Top 10 Farm Production Capacity Bidders
Here’s a detailed look at the top 10 farm purchasers when aggregating total production capacity purchased at auction from 2018 to 2024:
|
Company |
Total Capacity (tonnes) | Total Purchased (NOK) | Average Price (per tonnes) | % of Total Capacity |
|---|---|---|---|---|
| Salmar Farming AS | 14,523 | 3,119,780,862.00 | 164,750.00 | 15.73% |
| Cermaq Norway Salmon AS | 13,487 | 3,110,804,282.00 | 207,433.44 | 14.60% |
| Mowi Seawater AS | 9,599 | 1,734,276,820.00 | 159,106.83 | 10.39% |
| Eidsfjord Sjøfarm AS | 6,978 | 1,214,773,641.00 | 173,527.14 | 7.56% |
| Bjørøya AS | 3,800 | 597,739,900.00 | 157,299.97 | 4.11% |
| Salaks AS | 3,748 | 750,097,900.00 | 257,079.00 | 4.06% |
| Lovundlaks Sjø AS | 3,022 | 783,833,806.00 | 252,000.00 | 3.27% |
| Lofoten Sjøprodukter AS | 2,890 | 604,997,395.00 | 231,352.38 | 3.13% |
| Holmøy Havbruk AS | 2,770 | 905,910,000 | 327,043.32 | 3.00% |
| Frøy Kapital AS | 2,265 | 377,284,500.00 | 166,571.52 | 2.45% |
Strategic Insights and Future Implications
The results from the 2024 auction and the historical trends indicate a few key strategic insights for the industry:
- Market Dominance by Key Players: Leading firms like SalMar, Cermaq, and Mowi continue to leverage their financial strength to secure substantial capacities, indicating their long-term commitment to growth and a continued expanding of their market share.
- Price Sensitivity and Volume Prioritization: Different bidding strategies reflect varying priorities among companies, with some focusing on acquiring large volumes at competitive prices and others willing to pay a premium for additional capacity.
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