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Hydrogen plant planned for East

15.10.2021 - 15:07
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 Mynd: RÚV
Landsvirkjun, the Fjarðabyggð municipality, and the Danish investment fund CIP have joined together in a project to open a hydrogen production plant in the green energy centre at Mjóeyrarhöfn in Reyðarfjörður, East Iceland.

Jón Björn Hákonarson, mayor of Fjarðabyggð, says the project is just one of many developments planned for the future. “There will rise a hydrogen factory and ammonia factory as a continuation of that. As well as this, various operations will build up in the energy park based on these streams. Materials are being worked with there that are the most natural energy sources you can get, and at the same time we are taking this big step against the climate crisis and taking part in the energy shift and also speeding up that process here in Iceland.”

Landsvirkjun is Iceland’s biggest energy company and is a publicly-owned business. Fjarðabyggð is the municipality Reyðarfjörður is located within. And CIP is a Danish investment fund owned by the Danish pension funds and specialising in energy infrastructure investment around the world. 

Landsvirkjun  is investigating if and how excess energy from the grid can be used for hydrogen production—especially excess wind energy that could allow for increased production on windy days.  

The project has recently been joined by fishing company Síldarvinnslan, which wants to phase out fossil fuels on its ships; the aquaculture company Laxar, which can make use of the oxygen that is a by-product of hydrogen production; and Atmonia, which is developing new technologies for the production of industrial ammonia and nitrates. 

The main goal of the energy park is to produce alternative fuels, like hydrogen. Hydrogen can, in turn, be changed into ammonia or methanol for ease of transport.  

“Electrofuels will be produced in the world and will be produced in large quantities to facilitate the energy shift. For us this is naturally enormously valuable, not just for Fjarðabyggð, but for the whole country,” Jón Björn says—adding that the jobs created will be in diverse fields. “I am very excited and believe this involves enormous opportunities. We’ve just signed an agreement to take part in a new side-line of this production which is the large quantity of hot water left over and we are going to look at that, the municipality. Then we could have a district heating system for Reyðarfjörður.” 

Most towns in Iceland already have district heating systems—especially those in areas with geothermal hot water. Reyðarfjörður is in one of the few areas of the country without ample geothermal heat. 

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