The aim is to improve the continuity of hot water supply in Hafnarfjörður and elsewhere in the Capital Region, as well as to meet the country’s growing demand for electric power. Development of ideas for a Resource Park will occur simultaneously, focusing on outdoor activities, eco-friendly tourism, and green economic activities.
At their meeting yesterday, the Hafnarfjörður municipality council unanimously approved the agreement.
Future development of district heating utilities in the Capital Region
The agrement between HS Orka and Hafnarfjörður municipality authorises research, land use, lot lease, and utilisation of resources associated with potential resource utilisation in Krýsuvík. The objective of the agreement is to explore the possibility of harnessing geothermal heat and processing ground water in the land around Krýsuvík in a cost-effective and environmentally friendly way, along with the development of a Resource Park where resource streams are utilised further. The plan is to build a geothermal power plant at Sveifluháls in the Krýsuvík region.
On the one hand, the agreement authorises research into ground water resources, geothermal energy, and the economy of water and energy production in the land around Krýsuvík. On the other hand, the agreement authorises resource utilisation as far as utilisation permits and feasibility allow. The agreement, based on a letter of intent from November 2022, was approved by Hafnarfjörður municipality council yesterday, 5 June.
Hafnarfjörður owns Krýsuvík, a valuable outdoor recreation area and popular tourist destination. Furthermore, Krýsuvík features one of the most promising options available for the future development of district heating facilities in the Capital Region. Resource utilisation in Krýsuvík will significantly improve the continuity of hot water supply in the Capital Region, as the region currently receives all hot water from areas located to the east of the Capital, i.e. from the Nesjavallavirkjun and Hellisheiðarvirkjun power plants.
Rósa Guðbjartsdóttir, mayor of Hafnarfjörður, says that the agreement regarding future development in Krýsuvík marks an important milestone for Hafnarfjörður. “Hafnarfjörður has a unique treasure in the Krýsuvík region, featuring great untapped opportunity for use and enjoyment. This research and utilisation agreement has been a long time coming. The purpose is to guarantee future supply of hot water and energy for the people of Hafnarfjörður and others. At the same time, the area will be made more accessible for outdoor recreation and nature observation.”
Tómas Már Sigurðsson, CEO of HS Orka, says the agreement with Hafnarfjörður is cause for celebration. “It lays the foundation for ongoing geothermal research in the Krýsuvík region. We are hopeful that research will result in the use of geothermal energy for production of hot water for the people of Hafnarfjörður and their neighbours as well as for electricity production. Along with potential energy production, exciting new opportunities for the development of various green business activities will arise in Krýsuvík.”
A model in the interplay between energy production, tourism, and nature
It is estimated that a new geothermal power plant in Krýsuvík will be able to provide heat for a settlement of up to 50,000 people and will have the capacity to generate up to 100 MW of electricity. The aim is also to work on ideas for a Resource Park in Krýsuvík with an emphasis on developing ecofriendly tourism well suited to the environment and surrounding nature, outdoor recreation facilities, and green business activities such as algae cultivation, natural material production, and greenhouse farming. Emphasis shall be placed on keeping material use and the textures and colours of structures in the area well suited to the environment, and on maintaining and promoting the unique characteristics of the region. The lot lease area totals around 200,000 square metres and the geothermal area covers two square kilometres.
There are four main benefits to the agreement: Improved reliability of energy and hot water supply for the Capital Region, in particular Hafnarfjörður. Infrastructure development that creates attraction for services and visitors to the area. Assorted opportunities for developing business activities in the spirit of a circular economy, which could serve as a model in the interplay of energy production, tourism, and nature.
HS Orka hf. owns and operates two geothermal power plants on the Reykjanes Peninsula and has, for half a century, acquired knowledge and experience in the field of multiple use of resource streams from the plants. HS Orka’s Resource Park uses the streams for green energy solutions, cultivation, farming, the food industry, and tourism. HS Orka generates electricity into the country’s main power system as well as providing the community on the Southern Peninsula with fresh water and hot water.
A briefing about the plans will be held at 5 PM on 12 June at Bæjarbíó in Hafnarfjörður.
