The Secrets of Iceland's Geothermal and CCAS Success

Iceland's distinctive geography, with its active volcanoes and arctic conditions, provides the foundation for its position in green energy. The nation is a centre for climate tech development in areas such as carbon capture and storage geothermal power and biotech.

This innovation is concentrated at the Geothermal Park at Hellisheiði, owned by Orka náttúrunnar (ON Power), one of the country's leading green energy providers.

The park is situated on 103 hectares at the site of the Hellisheiði power plant, the largest geothermal power plant in Europe. It serves as an incubator for both climate tech start-ups and established businesses, using the earth's natural energy to power its vision.

The steam that hangs overhead is a clear indicator of the geothermal activity being harnessed below.

Harnessing geothermal energy for innovation

The Hellisheiði plant is not just an energy source; it is a platform for a circular economy. Árni Hrannar Haraldsson, CEO of ON Power, explains ON Power's vision for the park. “Our vision for ON Power‘s Geothermal Park is to create a platform where clean geothermal energy and its derivatives are transformed into new opportunities, for the environment, for innovation and for society." Haraldsson says. He adds: “The Geothermal Park is not just a pilot it’s a power station of the future, built on sustainability and ingenuity."

This ecosystem allows different companies to leverage the same energy source. Alongside ON Power, the park is home to several key players:

• Carbfix which captures waste CO2 and mineralises it into stone underground.
• Climeworks, a direct air capture company based in Zurich.
• VAXA Technologies, a biotech business using clean energy to produce sustainable microalgae. Árni notes that this cluster of climate tech companies demonstrates how a genuine circular economy can be established where “climate solutions, food production, carbon removal and energy production work in tandem”.

Energy efficiency through collaboration

The cooperative model is fundamental to the park's operation. Edda Sif Pind Aradóttir, CEO of Carbfix, highlights the importance of this approach for Carbfix's goals. "Our mission at Carbfix is to make a major contribution to climate recovery through safe, proven carbon mineralisation. Collaboration is a cornerstone of this mission." Aradóttir states. “By working hand-in-hand with local and global researchers, policymakers and industry leaders, we amplify our impact and accelerate innovation."

This collaborative spirit is visible in the park’s infrastructure. Climeworks’ Mammoth facility, which performs direct air capture, is a prime example. Sara Lind Guðbergsdóttir, Country Manager at Climeworks, concurs. “Mammoth is a technological milestone – and a testament to collaboration,” Sara says.

She explains how the shared resources benefit their operations directly. “It benefits from an ecosystem of companies working side by side and sharing access to renewable energy resources – from electricity to geothermal heat and cooling,” she adds. “This integrated approach makes our operations more efficient, sustainable and scalable.”

Future industries powered by geothermal energy

The vision for Hellisheiði extends to fostering further innovation. The next stage of development is an innovation hub called Glóð, which translates to ‘glowing embers’.

Ingunn Gunnarsdóttir, Leader of Innovation at ON Power, explains the purpose of the hub. "Being first-of-a-kind comes with challenges, but also great opportunities, and with our upcoming innovation hub, Glóð, we're building a bridge between innovative ideas and the real-world testing they need to thrive." says Ingunn.

“Our goal is to foster a vibrant community where researchers, start-ups, and entrepreneurs can engage directly with the geothermal resources, develop scalable solutions and contribute to a more sustainable future – together." Sara takes that vision a step further, stating: “This plant embodies our shared vision: to take long-term carbon removal from the atmosphere from an initial concept to a planetary scale.”

The park also accommodates businesses from different but complementary sectors. VAXA Technologies, for instance, transforms clean energy from the geothermal park into nutrient-rich microalgae.

Kristinn Haflidarson, General Manager at VAXA Technologies, says: "VAXA's location in the ON Geothermal Park at Hellisheiði is strategic, because the park allows for all of VAXA's sustainable energy needs and for a circular economy, both in resources and services.”

The park plans to attract more industries that can benefit from the readily available geothermal energy. Potential future sectors could include agri- and aquaculture, data centres, e-fuels and sustainable materials, all powered by the natural energy source beneath the ground.