The land of ice and fire: Iceland’s renewable scene

Iceland has recently garnered a lot of media attention, with the town of Grindavik being evacuated as magma-induced seismic activity ripped the town’s roads apart. Thousands of earth tremors were recorded as the Blue Lagoon tourist attraction closed, and workers tried to fortify the Svarsengi geothermal power plant. The root cause of this is a 15 km river of magma running underneath the peninsular that is slowly getting closer to the surface of the earth’s crust.

Though there was a brief lull in activity, the entire Reykjanes peninsular remains under alert as earthquakes have been creeping over magnitudes of three. Experts maintain that is not a case of ‘if’ but ‘when’ there will be an eruption, with the location most likely to be in the middle part of the dike between Hagafell and Sýlingarfell.¹ Potential impacts on tourism, travel, energy infrastructure, and of course the township of Grindavik are still cause for concern.

Geological disturbances like this are not entirely unprecedented in the area, especially since the Reykjanes peninsular, dormant for 800 years, ‘woke up’ in 2021. Iceland’s location on the mid-Atlantic ridge has made it a veritable hotbed of volcanism and geothermal activity, which stands in contrast to its cold and wet Atlantic climate. Despite its inherent risks, Icelanders have capitalised on the island’s unique geology and transformed it into a renewable powerhouse.

The government of Iceland have set ambitious targets in their green-transition. Unlike most countries, the country aims to be at net-zero by 2040 instead of 2050. This commitment is self-evident in the energy economy wherein only 15% of baseline energy is produced using fossil fuels for the transport sector. Even more remarkable is the fact that over 99% of electricity is generated from green resources. Iceland is both the largest green energy producer and the highest producer of energy per capita globally, producing an annual average of 55 000 KWh per person, which is almost 10 times more than the EU average.² This report examines Iceland’s approach to energy generation, focusing on the extensive use of geothermal and hydropower resources, and how advanced these sectors have become to the point where developing a wind sector has become almost redundant.

Geothermal energy

Geothermal activity is associated with active volcanoes where there is a source of heat in magma chambers a few kilometres from the surface of the earth. A source of water is also required to set up a hydroconvective system, and rocks have to be permeable enough for such water to seep through to the heated source. Once enough water is trapped in the rock, conductive heat transfer becomes possible, the water is then brought to the surface, cooled, and then dropped down to be heated again. This is a geothermal system.³

The mid-Atlantic ridge running through Iceland is conducive to an abundance of these geothermal systems. The island is largely made up of basalt, a porous and permeable igneous rock, and active volcanoes. Icelanders harness the steam and water from these geothermal systems, using propellers to generate electricity and heat to warm their homes. The geothermal resource has become somewhat intrinsic to the peoples’ way of life, with profound implications on their power, culture, and economy. In 2016, an impressive 65% of Iceland’s primary energy was sourced geothermically, and provided household heating for 90% of the population. Outdoor heated swimming pools powered using geothermal heat are common, and function as recreational spaces and communal hubs where people get together, showcasing the juxtaposition of hot and cold as central to the Icelandic lifestyle.

The economic impact has been equally as striking, as harnessing the geothermal resource for power generation saves the Icelandic economy ISK 9.5 billion/y (US$68 million). Of course, not all countries have the same extensive geothermal capacity as Iceland, however the Icelandic model shows just how streamlined and efficient geothermal usage can actually be. Numerous different power generators have managed to split the extraction into multiple revenue streams that function off each other’s waste.

HS Orka

HS Orka’s Resource Park stands as an example of Icelandic geothermal efficiency, and has succeeded in transforming the extraction process at the aforementioned Svartengi geothermal powerplant into a multifaceted operation, generating eight or nine separate revenue streams. As the third largest energy producer in Iceland, and the largest privately owned one, HS Orka contributes to about 7% of the nation’s total energy production share. While electricity constitutes 80% of the company’s revenue, the extraction yields other valuable resources and profits, including hot water, carbon dioxide (CO₂), geothermal water, lava-filtered seawater, cold water, electricity, and steam.

These ‘by-products’ of the energy generation process are incredibly versatile and have become the foundation for many other businesses. From the Blue Lagoon’s use of geothermal sea water in spas and hotels, to ORF genetics’ use of heat for genetically altered barley for cultured meat and human beauty products, the list goes on. A notable example is Carbon Recycling International’s converting of CO₂ into renewable methanol, which is promising as it repurposes greenhouse gases (GHG) for more sustainable alternatives, which is important in combatting climate change (this was covered in greater depth in an article on the Energy Global website).⁴ Other interesting endeavours include Blue Lagoon R&D cultivating microalgae for cosmetic uses, and Matoka employing lava-filtered seawater for sustainable aquaculture.⁵

There are, however, still areas of untapped waste, namely silica. Geothermal water extracted from the ground carries mineral concentrations, with silica being the most common in Iceland. Concentrations typically range between 0.6 – 1.2 g/l of fluid, and can form silicates when combined with various metals, which causes scaling issues for extraction pipes. Silica can be used in health and skincare products as well as food supplements, and so this is another example of how waste can be used profitably for geothermal energy.³

While the energy produced in Iceland is not quite ready to be packaged up and exported just yet, the model provided by the nation can be helpful to others. Not only has Iceland managed to harness the geothermal resource for power, but it stands as an example of how versatile extractions can be.

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For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global's Winter 2023 issue

The Winter 2023 issue of Energy Global hosts an array of technical articles weather analysis, geothermal solutions, energy storage technology, and more. This issue also features a regional report looking at the future of renewables in North America, and a report from Théodore Reed-Martin, Editorial Assistant, Energy Global, on how Iceland utilises its unique geology for renewable energy.

Read the article online at: https://www.energyglobal.com/special-reports/13122023/the-land-of-ice-and-fire-icelands-renewable-scene/