Reykjavik Energy finds new geothermal area in Iceland
Hellisheidi geothermal power plant by Reykjavik Energy, Iceland (source: flickr/ thinkgeoenergy, creative commons)
Alexander Richter
16 Apr 2026
Reykjavik Energy reports a new geothermal find at Hellisheidi, with potential to support district heating and power supply in Iceland.
Icelandic energy company Reykjavik Energy (Orkuveitan) has reported the discovery of a new geothermal resource area at Meitlar on Hellisheidi, adding potential new capacity for both district heating and power generation in Iceland.
The announcement was made by CEO Saevar Freyr Thráinsson in a radio interview in Iceland and reported locally, noting that two wells have already been drilled with temperatures of around 275°C recorded. A third well is planned to confirm the extent and viability of the resource. We reported on the drilling start.
Early-stage discovery with strategic implications
The identified geothermal area lies near the existing Hellisheidi geothermal power plant, one of Iceland’s largest geothermal facilities. According to Reykjavik Energy, the resource has not previously been publicly disclosed and follows around ten years of exploration and preparatory studies.
“This is on Hellisheidi, more specifically in Meitlar,” said Thráinsson, adding that confirmation from a third well would mark a major development for the country’s energy sector.
If validated, the resource could play a role in meeting growing heat demand in the capital region, where supply is expected to increase significantly over the next decade.
Potential to support heating and power demand
Reykjavik Energy indicated that the new resource could help meet heating demand equivalent to around 110,000 residents over the next 12 years. In addition, the high-temperature resource could support electricity generation, contributing to broader value creation from geothermal energy.
The discovery comes as the utility is implementing a long-term investment strategy, with plans to invest approximately ISK 230 billion (ca EUR 1.6bn) over the next five years across its operations.
Beyond the immediate development potential, the find also highlights ongoing efforts to improve resource identification through advanced methods, including the use of artificial intelligence in geothermal exploration.
Deep drilling and innovation efforts continue
Reykjavik Energy is also progressing its deep drilling initiatives, targeting temperatures exceeding 400°C at depths of around 2.5 kilometres in projects such as at Nesjavellir. The work is carried out with multiple international partners and supported by European funding.
These efforts aim to unlock higher-temperature resources and improve overall efficiency in geothermal utilisation, while also exploring ways to expand geothermal availability to colder regions.
At the same time, the utility continues to work on improving utilisation efficiency, including research on mineral removal from geothermal fluids, which could enhance heat recovery by up to 30 percent.
Broader energy system considerations
The announcement also reflects ongoing discussions in Iceland about energy system development, including the balance between generation and transmission. Reykjavik Energy has pointed to the importance of locating energy-intensive activities closer to production sites to avoid increasing transmission costs.
The discovery at Hellisheidi comes amid broader activity in Iceland’s geothermal sector, including new drilling campaigns and policy initiatives aimed at accelerating energy development.
Source: Visir.is
