Local turbine expertise strengthens Iceland geothermal sector
Lydur Skulason, Director Energy Services at HD, Iceland (source: HD)
Alexander Richter
8 Dec 2025
HD has built Iceland’s first full in-country turbine repair capability, reducing outages and strengthening the reliability of geothermal power generation.
Iceland’s geothermal operators have long faced a structural challenge. Until recently, any major turbine or rotor refurbishment required shipping components to service centres in Japan, the United States or mainland Europe. For critical geothermal units, this often meant long turnaround times, high transport costs and real risk to components in transit.
A feature interview with Lydur Skúlason, Director of Energy Services at HD Industrial and Technical Services, outlines how the company built Iceland’s first full in-country turbine repair capability. This shift has reduced outage durations for power producers and strengthened the reliability of the geothermal fleet at a time when new capacity continues to come online.
Building local capability to eliminate long-distance repairs
The development of Iceland-based turbine servicing originated from a clear operational need. “For many years, any major turbine or rotor refurbishment meant sending components halfway around the world,” said Skúlason. Limited OEM availability in Iceland increased the risk of long outages, which was a growing concern for operators such as ON Power.
Early experience with simpler maintenance tasks created the foundation for more advanced work. The predecessor of HD then began developing full in-country capability to carry out complex repairs. This required financial backing and long-term cooperation with international specialists. Over time, HD refined its own procedures for rotor weld build up, heat treatment and rotor straightening.
According to Skúlason, “Considerable effort has gone into introducing improved repair techniques, and this continuous development has been a key driver of the company’s capability.”
Domestic access reduces outage times and operational risk
The impact for geothermal operators has been tangible. In several emergency cases over the past decade, rotors required repair within days to avoid extended outages. Having the expertise available in Iceland allowed turbines to return to service quickly. If components had been shipped abroad, outages would likely have lasted weeks or months.
These avoided shutdowns equated to hundreds of millions of ISK in generation value. Planned repairs have also become more efficient due to shorter lead times, direct access to the workshop and the close involvement of plant owners throughout the process.
On-site assembly for the new turbine at Svartsengi
HD recently supported the installation of the new turbine at Svartsengi, a project that required on-site assembly and custom engineering. The turbine arrived in several sections and was assembled by HD technicians in cooperation with the manufacturer. The expansion at Svartsengi just recently started commercial operation, as we reported.
One of the most challenging tasks was the installation of the 118 ton generator. “The equipment had to be moved from the transport trailer, across an open basement area and onto its foundation with very tight tolerances,” said Skúlason. HD engineered the lifting and transport method specifically for this project to ensure a safe and accurate installation.
A strategic capability for Iceland’s geothermal future
The availability of advanced turbine servicing within Iceland now plays a central role in maintaining secure power production. Complex repairs can be carried out domestically, which reduces dependence on overseas workshops and provides faster response to unexpected events.
Skúlason noted that this capability “directly strengthens the security of supply for a country that relies heavily on geothermal power.” It also offers a stable technical foundation for future development as plants age and maintenance demands grow.
Relevance for other geothermal markets
HD’s model has potential applications in many geothermal regions where operators face similar distance and transport constraints. The company has developed more compact and cost effective repair equipment that can be deployed as temporary or mobile workshops inside power plants.
HD offers two options. It can bring its own equipment to each project, or the operator can acquire the equipment and carry out work independently with HD providing supervision and oversight. Local staff are trained to perform most tasks with Icelandic specialists ensuring quality control.
This service is already being considered by operators managing plants in remote areas where transport risks and costs are high.
Expanding capability as geothermal plants age
HD plans to continue refining methods for complex turbine and rotor repairs, including solutions that extend the operational life of critical components. The aim is to reduce the cost and carbon footprint of replacements while supporting long term plant performance.
The company also intends to strengthen its international presence. “We have already carried out several projects abroad, and our ambition is to significantly expand this offering in the coming years,” Skúlason said.
