20.10.2021

Plans to invest ISK 15 billion in methanol production in Reykjanes

Hydrogen Ventures Limited (H2V), an international energy company, plans to produce a large amount of hydrogen in Iceland, which will be used to make methanol. Although the methanol production will be completely environmentally friendly, HVL's plant will be located in the Reykjanes Resource Park, near one of HS Orka's two power plants.

The project is divided into two phases. In the first phase, the H2V plant's capacity for producing green methanol is estimated to be 30 megawatts of geothermal energy. The company's production capacity will be significantly increased in the second phase. The first phase is expected to cost more than EUR 100 million, which is about ISK 15 billion.

All the hydrogen that is generated will be certified "green hydrogen", which means that 100% of the energy used to produce it comes from renewable energy sources.

Representatives of H2V say that methanol can become an efficient and environmentally friendly energy source for the fishing industry as well as the domestic car fleet, not least vans and trucks. The project brings Iceland closer to its goal of achieving carbon neutrality by 2040.

More than 80% of Iceland's energy consumption is already based on renewable energy sources, primarily geothermal and hydropower. According to H2V's representatives, the purposeful development of infrastructure for the production of green hydrogen and methanol can make Iceland a leading nation in the field of renewable and clean energy by replacing fossil fuels in transport with renewable energy sources.

Horacio Carvalho, CEO of H2V:

Iceland has set itself an ambitious goal of reducing its carbon emissions, and we believe that the utilization of hydrogen is a key factor. With its experience in the field of renewable energy, Iceland can be at the forefront and show the world how to achieve full carbon neutrality. We are excited to be a part of this new revolution.

Tómas Már Sigurðsson, CEO of HS Orka:

We are very excited about this collaboration with H2V. They have a great deal of knowledge and experience that will be useful in building a project of this magnitude. It's also encouraging that they're considering Iceland's possibilities, particularly HS Orka's Resource Park, because in addition to electricity, HS Orka will be able to provide them with the water and carbon dioxide required for methanol production.