The Krýsuvík area has so far been highly rated as a geothermal area for energy production. There are hopes to produce hot water for Hafnarfjörður and the capital area, and electricity for the national grid. The company Jarðboranir is responsible for the practical part of the drilling, using the drill Óðinn. The drill is powered by electricity, so the drilling does not involve oil use to power its engines, except for the first few weeks until a new substation is operational.
Increased knowledge of the geothermal system
It is planned to directionally drill a hole up to 2,750 meters long down to a depth of over two kilometers under Sveifluháls to the northwest. The goal is to increase knowledge of the geothermal system, verify the existence of a high-temperature resource, and assess its utilization in the Sveifluháls – Austurengjar area. Additional deep research boreholes are planned, and preparations are already underway for the next drilling site with planning work and environmental impact assessments.
Expectations for a heating system for the capital area
Hafnarfjarðarbær owns the part of the Krýsuvík area where the research is taking place. Krýsuvík is a popular outdoor area and a sought-after destination for tourists, but the area also has significant industrial history. With resource utilization in Krýsuvík, there are hopes to improve the security of hot water supply to the capital area, as today most of the hot water comes from Nesjavellir and Hellisheiði power plants in the Hengill area.
Agreement with Hafnarfjarðarbær municipality
In June last year, Hafnarfjarðarbær municipality and HS Orka signed an agreement on permission for research, land use, lease of land, and utilization of resource rights in connection with the potential utilization of resources in Krýsuvík. The agreement aims to explore the possibilities of harnessing geothermal energy and extracting groundwater in Krýsuvík in an economical and environmentally friendly manner, alongside the development of a resource park where further utilization of production streams can take place.
In 1998, the company Jarðlind ehf. was established for cooperation in preparation for geothermal production in the Krýsuvík area, and Hitaveita Suðurnesja, the predecessor of HS Orka, and Hafnarfjarðarbær municipality were among the owners. Jarðlind was later merged with Hitaveita Suðurnesja. Two high-temperature boreholes were drilled in Trölladyngja at the time, but they did not justify development. In 2006, HS Orka and Hafnarfjarðarbær municipality reached an agreement on geothermal utilization in Krýsuvík, laying the foundation for the current agreement.
The permit for the research drilling, which is now starting, was granted at the beginning of 2024, and the agreement itself, based on a declaration of intent from November 2022, was approved by the Hafnarfjarðarbær town council on June 5th of last year.
Exciting interplay of energy production, tourism, and nature
It is expected that a new power plant in the Sveifluháls area could heat up homes of up to 50,000 people and have a capacity of 100 MW of electricity. The agreement with Hafnarfjarðarbær stipulates that the parties will work together on other developments that utilize resource streams from the power plant, similar to what is done under the name Resource Park at HS Orka's power plants in Svartsengi and Reykjanes. Emphasis will be placed on developing eco-friendly tourism, which fits well with the environment and nature, along with outdoor facilities and green businesses such as algae cultivation, natural chemical extraction, greenhouse cultivation, and more.
Structures should blend well with nature and local conditions
Care must be taken in the design and appearance of all structures when and if development of occurs, so that they blend well with the nature and characteristics of the area and become an acceptable part of it.
If the research in Krýsuvík yields positive results, the benefits can be threefold:
- · Increased energy and hot water security for the capital area, especially Hafnarfjörður.
- · Infrastructure development that attracts service providers and visitors to the area.
- · Diverse opportunities for business development in the spirit of the circular economy, which can become a model for the interplay of energy production, tourism, and nature.
Research in Krýsuvík for over 80 years
Ideas about geothermal utilization in Krýsuvík are not new. Hafnarfjarðarbær municipality, as a landowner at Sveifluháls and Austurengjar, has paid attention to the area for decades - both for electricity production and for heating systems that could serve nearby communities.
Significant research has previously been conducted in the Krýsuvík area, with the first dating back to 1941. A total of 34 holes have been drilled in the area, both geothermal and cold water holes. Most of them were drilled by Rafveita Hafnarfjarðar (The Power Company of Hafnarfjörður), but also by the state and Orkustofnun (The Environment and Energy Agency), as well as HS Orka.
Permits and timeline
If the research yields the desired results, it is planned that a geothermal power plant will be established at Sveifluháls. It is not yet possible to say exactly where the various structures of the geothermal production will be located. The results of the research drilling are crucial before the locations can be decided, as well as the environmental assessment of the projects and the overall interplay with the nature of Krýsuvík and other businesses in the area.
The environmental assessment for the planned projects in Krýsuvík is in preparation, but the project's overall timeline spans nearly a decade.
Geothermal production in Krýsuvík for national security
Following a storm that raged in Iceland in December 2019, a government task force worked on an action plan where Krýsuvík was defined as a particularly important area for the strengtening of the security of the heating system in the capital area and on the Reykjanes Peninsula. One part of the government's plan to ensure future energy security calls for a "survey of a joint heating plant in Krýsuvík for the Reykjanes Peninsula and the capital area, under the auspices of public interests, national security, and the priority of geothermal production for heating systems." HS Orka works with these guidelines in mind.
