Meet

– a Pioneer in the Use of Renewable Resources

The solution to the threat of climate change is based on diverse clean, renewable and environmentally sound sources of energy.

Why is Iceland one of the many powerful rivers, providing the world’s greatest potential nation with a wealth of hydro-power. sources of ? The country’s geographical peculiarities have endowed Iceland with an Located just south of the Arctic Circle, abundant supply of geothermal Iceland is located on both a hotspot resources and . and the Mid Atlantic Ridge, which runs right through it. Iceland has succeeded in doing what many consider impossible: This combined location means that transforming its energy system from geologically the island is extremely fossil to clean energy. The use active with an eruption every five years of geothermal is on average. highly cost-effective, reliable, clean, Despite its fiery nature, about one- and socially important. It has also tenth of Iceland’s landmass is covered dramatically increased the quality of by glaciers, from whose icecaps flow life for the inhabitants.

National Energy Authority Published in September 2009 Providing Solutions to the World Renewable Energy in Iceland Harnessing Natural Resources

Iceland is a country of 300,000 Iceland’s energy use per capita is among the people, located on the mid-Atlantic highest in the world, and the proportion of ridge. It is mountainous and volcanic this provided by renewable energy sources with much precipitation. The country’s exceeds most other countries. Nowhere else geographical peculiarities have does play a greater role endowed Iceland with an abundant in proving a nation’s energy supply. Almost supply of geothermal resources and three-quarters of the population live in the hydropower. south-western part of the country, where geothermal resources are abundant. During the course of the 20th century, Iceland went from what was one of Europe’s poorest countries, dependent upon peat and imported coal for its energy, to a consumption in Iceland 1940–2008 country with a high standard of living where practically all stationary energy, and in 250 2008 roughly 82% of primary energy was Relative consumption 250 derived from indigenous renewable sources 200 Coal (62% geothermal, 20% hydropower). The 200 rest of Iceland’s energy sources come from 150 150 Coal imported fossil used for fishing and 100 transportation. Geothermal 50 Peat Oil 100 Hydropower 0 Today, this makes Iceland a world leader in 1945 1965 1985 2005 terms of the share of renewable resources that the country uses. 50 Geothermal

Hydropower

0 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Renewable Energy in Iceland Providing Solutions to the World Harnessing Rivers

Less than 10 years after Thomas Edi- In 1904, Iceland’s first hydropower station son opened the world’s first hydro­ brought to some inhabitants of electric , a group of the port of Hafnarfjörður, and switches visionary began exploring clicked on in Reykjavík in 1921. The next the possibility of harn­essing some of decades saw the electrification of rural their own country’s rivers and - areas, and 1946 saw the formation of falls as an energy source to create Iceland State Electricity, followed in 1965 by light and heat. the National Power Company (Landsvirkjun).

Demand for electricity in Iceland increased dramatically with the opening of the coun- try’s first smelter in 1969. Today 80% of the nation’s electricity use, is due to power intensive industries.

At the end of the year 2008, Iceland has hydroelectric power stations with a total installed capacity of 1.880 MW.

Providing Solutions to the World Renewable Energy in Iceland Nature’s

In the active volcanic zone of Iceland, 30 school became the city’s first building to high temperature fields have been identified be heated using geothermal water. As and on the flanks of the volcanic zone further wells followed, more buildings were clusters of low temperature fields exist. In connected to the system, a process greatly low temper­ature systems, temperature in accelerated by the global oil crises of the the uppermost 1000 m may reach up to early 1970s. Today, almost 90% of Iceland’s 150°C. The water is mostly used directly houses and buildings are heated by natural to supply hot water for , hot water. facilities cur- green­houses, swimming pools etc. In the rently generate 25% of the electricity (4.038 high temperature fields, on the other hand, GWh of total 16.467 GWh), and the official temperatures reach over 200°C at 1000 energy forecast projects a 50% increase in m depth. Electricity can be generated from the use of geothermal energy by 2030. these fields due to the high tempera­tures but since the water is much richer in miner- als and gases, the hot water is used Geothermal energy begins life as rain- for heating fresh water. Geothermal fields water, which gradually seeps deep into the ground where it is heat- While the first attempts at ed by hot rock. While some of this drilling for hot water in water returns to the surface as hot Iceland were made in springs or , most remains the mid-18th century, trapped under­ground, from where it is it was not until 1930 ex­tracted using technology similar to that a Reykjavík that used to obtain oil or fresh water.

Bedrock < 0.8 m. years High temperature field 0.8 - 3.3 m. years Low temperature field 3.3 - 15 m. years

Renewable Energy in Iceland Providing Solutions to the World 2008

-91 m

-280 m

2009

-800 m

-2.4 km

-3.5 km Deep resources – More Energy -4.5 km

The Iceland Deep Drilling Project A feasibility study completed in 2003 A typical 2.5 km-deep geothermal well (IDDP) is a long-term study of high- indicates that relative to the output from in Iceland yields power equivalent to temperature hydrothermal systems in conventional geothermal wells, which are approximately 5 MWe. Assuming a similar Iceland. 2.5 km deep, a ten-fold increase in power volumetric inflow rate of steam, an IDDP output per well could result if fluid is pro­ well tapping a supercritical reservoir at The IDDP is a collaborative effort by a con- duced from reservoirs hotter than 450°C. temperatures above 450°C and at a pres- sortium of Icelandic and foreign power com- sure of 23-26 MPa may be expected to yield panies and the Icelandic government, formed ~50 MWe. to determine if utilizing supercritical­­ geother- mal fluids would improve the economics of power productions­ from geothermal fields. Over the next several years the IDDP, expects to drill and test a series of boreholes that will penetrate supercritical zones believed to be present beneath three currently exploited geothermal fields in Iceland. This will require drilling to a depth of about 5 km in order to reach hydrothermal fluids at temperatures ranging from 450°C to ~600°C.

Providing Solutions to the World Renewable Energy in Iceland Export of know-how – Iceland as an active international partner in developing renewable energy

As global warming poses a threat to the Phillipines, , Hungary, Djibouti, Energy and contracting companies: the world, it is now mostly acknowl- Eritrea, Nicaragua, and El Salvador to name edged that an increased use of renew- but a few examples. Geysir Green Energy – www.gge.is able energy could play a key role in Iceland Drilling – www.iceland-drilling.com reducing this development. Engineering and consulting companies: Icelandic State Electricity – www.rarik.is HS Orka – www.hsorka.is Geothermal energy can play a significant Efla – www.efla.is Landsvirkjun Power – www.lvp.is role in the electricity production of countries Icelandic Geosurvey – www.isor.is Reykjavik Energy – www.or.is and regions rich in high-temperature fields Mannvit – www.mannvit.is which are associated with volcanic activity. Verkís – www.verkis.is Capacity building and transfer of technology are key issues in the sustainable develop- ment of geothermal resources.

Icelandic emphasis in bi-lateral develop­ ment assistance has therefore focused on geothermal energy and cooperation with countries who sit on unexploited geo­thermal resources. The objective being to assist them to develop their renewable energy resources.

In addition, several Icelandic companies make it their business to export geo­thermal Geothermal projects with Icelandic participation. and hydropower know-how and experi­ence. Hot temperature zones where Icelandic experts participate in geothermal geothermal power can best be harnessed. New technology projects worldwide, and have contributed to can open up more areas. the world’s best known geothermal projects. Geothermal experts from Iceland are now at work in the United States, China, Indonesia,

Renewable Energy in Iceland Providing Solutions to the World Knowledge is Power

Renewable energy has become an RES – The School for its focus on sustainable energy use, practical important field of study in Iceland. Renewable Energy Science experience in the field and ready access The Icelandic universities have tak- www.res.is to on-site work with experts on various en the lead, founding graduate and subjects. RES has since the year post-graduate courses in many fields 2007 offered an intensive of exper­tise in clean energy, colla­ The and unique inter­disciplinary www.hi.is borating with some of the world’s research oriented one-year graduate leading institutions. The University of Iceland is an programme in Renewable Energy Science. active coordinative partner in The pro­gramme is offered in cooperation UNU-GTP – The United the programmes of REYST, RES Nations Geothermal Training with University of Iceland and University and KEILIR., but also offers in-house gradu- Programme of , as well as in partner­ship with ate studies in the field of Renewable Energy www.unugtp.is a number of leading technical universities Engineering: an interdischiplinary study on around the world. In 2009 the school will The UNU-GTP has since the technical and environmental aspect har- offer four specialisations of study: Geother- 1979 been assisting nessing, distributing and consuming energy mal Energy; Systems & ; developing countries with in a sustainable manner. Biofuels & Bioenergy; and Energy Systems significant geothermal & Policies. Reykjavik University potential to establish www.ru.is groups of specialists in geothermal explor­ REYST – Reykjavik Energy ation and developement by offering six Graduate School of month specialised training and, further­more, Sustainable Systems www.reyst.is the possibility of extending their studies to a Reykjavik University offers a BSc programme MSc and PhD degree in geo­thermal sciences Since 2008 the in Mechanical and Energy Engineering with or engineering, in cooperation with the school has offered a strong tradition of practical orientation in University of Iceland. an international cooperation with the industry. The research graduate programme based on the three focus is on applied research in cooperation pillars of engineering, earth science and with specialized companies and institutions business. The programme­ is characterized by in the energy field.

Providing Solutions to the World Renewable Energy in Iceland Alternative Fuels

In spite of the widespread use of Electricity based alternatives, such as bat- Carbon Recycling renewables for electricity and heat- tery vehicles, hydrogen and designer fuels International captures ing, Iceland is still dependent on fossil are obvious candidates for Iceland, given carbon dioxide from fuels when it comes to transportation the country’s abundant renewable energy industrial emissions and and fishing. Those two categories rep- resources. However, biofuels shouldn’t be converts carbon dioxide resent about a third of the country’s overlooked, in particular those that can be to ultra clean fuel. The CO2 emissions. produced by utilizing waste products. sources of emissions can be from basic infrastructure industrial processes including The Icelandic government supports innova- geothermal power plants, aluminum smelt- Distribution of CO2 emissions by source in 2006 tive companies in clean energy, energy ing, ferro silicon manufacturing, cement industrial processes efficiency, and clean technology. These are a production and coal fired power generation. 31% couple of expamles: Carbon Recycling International was selected at Cleantech Forum XXII in Copenhagen in stationary SMART H2 is one of many ongoing alter­ combustion oil construction April 2009 as one of the five most promis- 5% 7% native fuel projects in Iceland, managed by geothermal ing cleantech firms in the Nordic region. 5% Icelandic New Energy. It’s a demon­ other 2% stration project testing hydrogen fuelled vehicles and vessels, including a hydrogen road vehicles 28% fishing 18% auxiliary power unit for a whale safari tour ship – shown on picture above. Marorka is a leading producer of energy All fossil fuels are imported, and the price management systems for ocean vessels. tag is about one tenth of the cost of Ice- The company’s aim is to enable customers land’s entire imports. Finding alternatives to maximize their operating results by to fossil fuels should therefore be a priority, minimizing fuel consumption and harmful especially those alternative fuels that can be emissions. Marorka won the Nature and produced locally. Environment Prize awarded by the Nordic Council in 2008.

Renewable Energy in Iceland Providing Solutions to the World Biofuels in Iceland

Methane Metan Ltd. Biodiesel Methane has been collected from a waste Metan Ltd. was founded as a subsidiary of Biodiesel has been imported since 2004 and yard since 2000 and utilized as fuel for the waste disposal company Sorpa, with the sold as a B5 or B10 fuel blend. Biodiesel can transport since 2003. It is estimated that the purpose of producing and selling energy be blended with fossil diesel oil and as such production capacity of the methane collect- from waste landfills. Metan Ltd. is now a utilizes the current infrastructure. Biodiesel ing yard is enough to provide about 4000 marketing and development company for is produced using animal waste or energy cars with fuel, but so far only a fraction of alternative fuel in the form of methane. The crops. It is possible to produce biodiesel that number are using methane. role of the company is to market and distrib- locally from waste fat from food production ute energy in the form of electricity, raw gas, or energy crops. landfill gas and upgraded methane as well as knowledge collection within the field of Using current technology in biofuels, it is biogas and landfill gas utilization. difficult or even impossible to substitute the entire use in Iceland with biofuels produced locally. However, it is quite pos- Ethanol sible to substitute some of the fossil fuel use with locally produced biofuels from waste. Ethanol has been imported since 2007 Such production reduces waste, CO2 emis- and sold as an E85 fuel blend. Ethanol is sions and lessens Iceland’s dependence on produced using plant waste, energy crops imported fuels. or industrial waste. It is possible to produce ethanol locally although the climate in Iceland is not ideal for growing energy crops. Ethanol can be blended in gasoline as an additive and as such utilizes the current infrastructure.

Providing Solutions to the World Renewable Energy in Iceland Electricity as a Fuel

Fossil Free Electric Drive in Iceland Iceland is ideal for utilizing electricity as Changing the fleet to electric drive won’t fuel, since all electricity is produced from happen overnight. It will require sub­stantial renewable resources, and is therefore mostly investments in technology, manufacturing, CO2 free. Electricity can be used directly in modernizing infrastructure and market battery vehicles, or as designer fuels, includ- development. This is why we need to get on ing hydrogen. Cleaner vehicle technologies the right road, right away and why Iceland help everyone breathe easier, cut down already has several experimental projects in and reduce our various stages concerning the utilization of The Icelandic President, Olafur Ragnar Grimsson, test-driving the Mitshubishi i-Miev. dependence on imported fossil fuels. Electric electricity as fuel. To name a few examples: In 2008 Mitshubishi Motors Corporationh and the drive is a compelling solution to these Icelandic Ministry of INdustry, Energy, and Tourism, • A project concerning the conversion of a signed a MoU regarding fleet testing of the zero national concerns. emissions i-Miev . The fleet testing will hybrid car into a plug-in hybrid. start in 2009. Improving Efficiency • Fleet vehicle testing of electric vehicles The efficiency of electricity as a fuel is with lithium batteries. strongly dependent on the medium used. • All electricity in Iceland is Battery vehicles have the highest efficiency, • Feasibility studies of designer fuels produced from renewable but the energy density of batteries is rather production and pilot plants. energy sources – 100% small, and it is therefore difficult to imagine battery powered ships or airplanes. Fuel • A very successful and a long running • This means that all use of cells using hydrogen are somewhat more hydrogen project has seen the operation electricity in transport, in efficient, but expensive. Designer fuels are of hydrogen busses, passenger cars and Iceland, can be fossil free from the least efficient, but often easiest to use even the installation of a well to wheel since they can utilize existing infrastructure. cell as an auxilliary engine on board a whale watching ship.

Renewable Energy in Iceland Providing Solutions to the World Energy Meets Tourism

The Icelandic energy industry has Mývatn Nature Baths Nauthólsvík opened up it’s doors to all those inter- Geothermal Beach Containing a unique blend of minerals, ested in the development of renew- silicates and geothermal microorganisms, In Iceland the sea is normally far too cold able energy in Iceland, it’s products, the warm, soothing of Mývatn to tempt swimmers, but at Nautholsvik bay and by-products. Nature Baths are beneficial to skin and in Reykjavik, a thermal beach has been created, where natural hot water flows out Power Plants spirit alike, creating a sense of wellbeing which lingers on as a lasting memory into the sea, and you can frolic in the In Iceland, various high tech geo­thermal of your visit to this spellbinding area at waves as if you were in the Mediterra- power plants, as well as hydropower plants, Europe´s outer limits. nean! have an open door policy and offer tours around their facilities, explaning the technical Thermal Pools aspects of how they generate power. Heating of outdoor swimming pools is among the most important uses of geo­ therrmal energy in Iceland. There are 136 recreational swimming centers in Iceland using geothermal heat. One of the delights of a visit to Iceland is bathing in one of the many thermal pools, filled with geo­thermally heated water. The pools are mostly open-air, and always pleasantly warm - whatever the weather - and most have outdoor Power Plant Earth Blue Lagoon whirlpools or ‘hot-pots’ to bask in before or Power Plant Earth is a new exhibition locat- The Blue Lagoon geothermal spa offering after swimming. ed in Reykjanesvirkjun, a geothermal power a unique experience based on bathing in plant. Located in a lava field in the south west point of the Reykjanes peninsula it´s the Blue Lagoon geothermal brine, a natural surroundings make it an extraordi- unique ecocycle where high technology nary place to visit. The museum is only a 15 and nature work in perfect harmony in min. drive away from the Blue Lagoon. Iceland’s extreme environment.

Providing Solutions to the World Renewable Energy in Iceland Grensasvegur 9 Tel: +354 569 6000 IS-108 Reykjavik Fax: +354 568 8896 National Energy Authority Iceland www.nea.is National Energy Authority A F O T S A G N I S Ý L G U A

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Renewable Energy in Iceland Providing Solutions to the World