The beginning of geothermal harnessing can be traced back to 1953 when a budget for Keflavík of 20.000 krónur was granted for “Researching the potential possibilities of district heating”. In 1956 a research hole was drilled, followed by seven research holes during the years of 1968-1969 and hole 9 was drilled in 1983. In 1999, drilling began anew in culminating with hole named REY H 010.

Land and geothermal heat rights
On the 5^th of December in 1987 Hitaveita Suðurnesja bought Sjóefnavinnsla thus obtaining their geothermal rights. In 1999 Hitaveita Suðurnesja then bought land (visible on the map below with blue strips) off local municipalities in Suðurnes along with additional land (marked in red on the map) off the owners of Kalmannlake and Junkagerði on the 24^th of May 2004.

Environmental Assessment
There have been 2 environmental reports. The rulings of The Icelandic National Planning Agency occured on the 17^th of May 2000 and then the ruling of the Ministry for the Environment because of Hitaveita Suðurnesja's impeachment on the 30^th of August 2000. The ruling of The Icelandic National Planning Agency was on the 27^th of September 2002 and the decision of The Environmental Agency due to the location of the powerhouse on the 20^th of February 2004.