Landsvirkjun, the municipality of Fjarðabyggð and the Danish investment fund CIP have joined forces in a project to open a hydrogen production facility at the Mjóeyrarhöfn green energy park in Reyðarfjörður in eastern Iceland.
Jón Björn Hákonarson, the mayor of Fjarðabyggð, says the project is just one of many planned projects. “As a continuation, a hydrogen plant and an ammonia plant will be built. In addition, various plants based on these resources will be built in the energy park. They are working on materials that are the most natural sources of energy that can be obtained. At the same time, it is a great step against the climate crisis. We are taking part in the energy transition and we are also accelerating the process here in Iceland. ‘
Landsvirkjun is the largest energy company in Iceland and is a public company. Fjarðabyggð is the municipality in which Reyðarfjörður is located. CIP, on the other hand, is a Danish investment fund, owned by Danish pension funds and specializing in investments in energy infrastructure around the world.
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Landsvirkjun is investigating whether excess energy from the grid can be used to produce hydrogen – especially excess wind energy, which could allow it to increase production on windy days.
The fishing company Síldarvinnslan has recently joined the project to phase out fossil fuels on its ships, aquaculture company Laxar can use oxygen as a by-product of hydrogen production, and Atmonia, which is developing new technologies to produce industrial ammonia and nitrates.
The main purpose of the energy park is to produce alternative fuels such as hydrogen, which can in turn be converted into ammonia or methanol for transport.
“Electrofuels will increasingly be produced around the world to facilitate changes in energy production. For us it is of course extremely valuable, not only for Fjarðabyggð, but for the whole country ” Jón Björn says, adding that many jobs will also be created. “I am very excited and believe it has great opportunities. We have just signed an agreement to participate in a new hot water production line. We are going to look at it together with the commune. We could have a district heating system for Reyðarfjörður. ‘
Most cities in Iceland already have district heating – especially in areas with geothermal water.
Reyðarfjörður is located in one of the few areas of the country where there is not enough geothermal heat.
Source: Yle