Geothermal Energy in Krýsuvík

HS Orka has begun drilling the first deep research well at Sveifluháls in Krýsuvík, with additional research wells currently being prepared in the vicinity. Drilling at Sveifluháls began in April 2025.

The aim is to drill down to a vertical depth of 2500 meters using directional drilling, resulting in a well length of approximately 2750 meters. The research aims to assess whether the area has sufficient heat and permeability - that is, conditions necessary for the flow of hot water through the underground rock layers. If these conditions are met, the site could be well suited for geothermal heat and electricity production.

Area of national importance

The Krýsuvík area is considered among Iceland’s most important geothermal areas when it comes to ensuring the security of hot water supply for Hafnarfjörður, the capital area, and potentially communities further out on the Reykjanes Peninsula. The area could also play a key role in meeting the country's growing electricity needs.

Currently, there is insufficient data to fully evaluate the area’s potential for geothermal utilization. The research drilling is therefore primarily aimed at assessing the feasibility of the area and deepening the understanding of the region’s geological conditions.

Long History of Research

Geothermal research in the Krýsuvík area has a long history, with the first recorded survey dating back to 1756 when studies were conducted on hot springs and mud pots in Krýsuvík, which were among the earliest scientific geological investigations conducted in Iceland.
Over the decades, various surveys and drilling efforts have been conducted in the area. Between 1941 and 1951, multiple shallow wells were drilled around Krýsuvík to harness steam for electricity production for Hafnarfjörður and the capital region. While the wells confirmed the presence of geothermal heat, the quantities were not sufficient to support electricity generation at the time. Nonetheless, the results were considered valuable and laid the groundwork for future research and exploration.

Expanded Research through deep drilling

Systematic geothermal research in the Krýsuvík area began in 1970 under the direction of Orkustofnun, The National Energy Authority, leading to the drilling of several deep exploratory wells. Since the early 2000s, research activity has increased significantly. One of the key developments was the initiation of drilling at Trölladyngja by the Hitaveita Suðurnesja (later divided into two companies: HS Orka and HS Veitur). These drillings revealed exceptionally high geothermal temperatures that exceeded 350°C in the deepest wells (TR-1 & TR-2).

In addition, extensive resistivity measurements have been conducted using TEM and MT methods, mapping geothermal features, and studying gas types and geochemistry of the area.

Best Possible Technology supporting Research

Since 2020, HS Orka has been systematically preparing for further research drilling in the Krýsuvík area. As part of this effort, the company’s resource management team has developed a comprehensive three-dimensional geological model, integrating all major existing research and data. This advanced model offers a significantly improved understanding of the area’s subsurface geological structure and plays a critical role in guiding drilling decisions and evaluating the potential for future geothermal resource utilization.

Significant investment amid uncertainty

Drilling the first deep research well in an unexplored geothermal area involves significant financial undertaking, with considrable risk for the company involved. The cost of a single well can amount to up to one billion ISK, with no guarantee tof sucsess. Despite using the best possible scientific methods to assess the area, the outcome of the drilling remains uncertain.
Additional research wells are planned in Krýsuvík as part of the ongoing exploration phase. However, the number and precise locations of these wells will be determined based on the findings from the initial drilling at Sveifluháls.

Further information on older research from the area can be found on the ISOR website.