Icelandic geothermal cluster project with Michael Porter of Harvard

Michael Porter and Alexander Richter in front of Islandsbanki's booth, Reykjavik/ Iceland, 1 November 2010

Alexander Richter 6 Nov 2010

In a presentation last week in Iceland, Prof. Michael Porter of Harvard University discussed his views and some initial findings of a cluster work on the Icelandic geothermal energy industry.

In his speech he talked about that “if Icelanders could not use the opportunities (presented by) geothermal energy they should be ashamed”. He was speaking at a big half-day convention in Reykjavik, Iceland to a mixed crowd of industry representatives, politicians, students and other interested people.

He further said that “Iceland has all possibilities to be a large player in this market in the future”, and that it would be important to now look into the future and the competitiveness of the country. He referred to that Icelanders need to find ways to utilize the opportunities presented by geothermal energy and sell their experience and know-how internationally, not only the energy itself. In the future Icelanders have the possibility to own and operate geothermal companies around the world. In the export of know-how, Icelandic engineering and technical consultants have done a good job and projects with the involvement of Icelandic players abroad have been successful.

He then further discussed the opportunities that a cluster approach could have for the Icelandic geothermal energy industry and how important it would be in the future of economic development in the country. While the export of electricity through a cable would be one opportunity, this would be an approach longer away in the future and there should be more shorter term approach efforts be made utilizing the existing know-how and experience.

The cluster approach would be important for Iceland as it would bring together all companies active in the sector and beyond. The Icelandic government and government organizations and agencies should be assisting the industry where they could. He also mentioned cluster work done in the U.S. state of Nevada and New Zealand that could be competition for the Icelandic sector, but could also represent opportunities for cooperation.

The project is led by Icelandic company Gekon and supported by a large group of companies in the sector and related sectors.

Further details on the project can be found on the project’s website: www.icelandgeothermal.is

Source in parts: Icelandic Morgunbladid (in Icelandic)

Disclaimer: I have personally been involved in this project on behalf of my employer Islandsbanki.