Local community to profit from geothermal side businesses in Iceland

Local community to profit from geothermal side businesses in Iceland Hellisheidi geothermal power plant by Reykjavik Energy, Iceland (source: flickr/ thinkgeoenergy, creative commons)
Alexander Richter 16 Jan 2019

With an expected new algae growing business to generate up to $60m in revenues in the next five years, further development in the geothermal park utilising resources at the geothermal plants of ON Power in Iceland is expected with great impact on the local community.

As local news report from Iceland, company Algaennovation Iceland expects sales of around $60m (ISK 7 bn) five years after it takes up operations in the Geothermal Park of ON Power at the Hellisheidi Geothermal Power Plant in Iceland.

According to details from a recent council meeting of the municipality of Ölfuss, Algaennovation Iceland has applied for credit from the incentive committee for new investments in Iceland. An agreement has been reached with the international start-up company Algaennovation on facilities and various energy-related resources for the cultivation of small algae in Geothermal Park of ON.

“The algae will be used to produce animal feed and possibly also for human consumption. Algaennovation is owned by the scientists who founded the company in addition to Icelandic companies and investors, ”says about the company’s planned activities.

Ölfuss town council says that the factory could become one of the pillars of the local economy, as it “fits in well with the municipality’s focus on environmentally friendly light industry, food processing and full utilization of resources within the area.”

“Thus, it is expected that after five years, the plant’s annual income will be about $60 million (ISK 7bn) and create at least 25 to 35 jobs. Initially, the annual output will be tens of tons, but in the sixth year production has reached 900 tonnes, ”the town council draws on the future of Algaennovation Iceland’s activities.

The Geothermal Park of ON Power is described  as framework for a variety of activities and will foster best use of resources, value creation and have a positive environmental impact.

The geothermal plants of Hellisheidi and Nesjavellir are producing electricity and heating, providing also water and steam as by-products. “Materials in the geothermal steam such as silica and geothermal air can be valuable and at the power plant there is easy access to fresh water and electricity that is worked on the power plant.”

“There is reason to commend this particular company for understanding the importance of working closely and closely with the community and local residents. In this way, the company intends to look for ways to create jobs for residents in the vicinity, buy services from companies there and other things, ”according to the mayor, who is optimistic on behalf of the municipality.