Landsvirkjun and Landeldi Sign a 20 MW Green Power Purchase Agreement

Halldór Ólafur Halldórsson, COB of Landeldi, and Hörður Arnarson, CEO of Landvirkjun, signed the con…
Halldór Ólafur Halldórsson, COB of Landeldi, and Hörður Arnarson, CEO of Landvirkjun, signed the contract at Landeldi's fully land-based aquaculture facilities in Thorlakshofn.

Landsvirkjun and Landeldi hf. have signed a Green Power Purchase Agreement (Green PPA) for up to 20 MW of electricity to Landeldi’s land-based salmon farm in Þorlákshöfn, South Iceland. Negotiations have been ongoing since 2021. Renewable energy is key for Landeldi’s sustainable production, as well as use of sea and fresh water.

Diverse and sustainable food production

This agreement bears witness to Landsvirkjun’s new emphasis in energy sales for the next few years, as the Company has declared it will give prominence priority to selling energy to innovative production projects, which increase diversity in industrial activities, e.g. food production.

Furthermore, the agreement is in line with Landeldi’s targets of sustainable food production, with a small ecological footprint, and supporting marine conservation. Landeldi’s catchment area in Þorlákshöfn offers an abundance of fresh- and seawater at an ideal temperature year-round. Seawater is filtered naturally through young lava bedrock, resulting in even temperature, and creating favourable circumstances for aquaculture. The salmon from Landeldi cannot accidentally be released into nature and presents no danger to wild salmon stock.

The PPA is for up to 20 MW of energy, but delivery will be increased incrementally with the growing rate of production in the coming years. The energy will be delivered from the current energy generation system but planned increases in energy generation in South Iceland will further support delivery. Landeldi plans to offer its products internationally and will buy GOs (Guarantees of Origin) from Landsvirkjun, as it sees the benefit in informing consumers of the green and renewable original of the energy used in the production.

Green Energy for Sustainable Value Creation

Hörður Arnarson, CEO Landsvirkjun:

“Landsvirkjun’s green energy is greatly sought-after as an energy source, and the National Energy Power Company wants to prioritise energy sales to projects which support value adding creation and sustainable use of natural resources. Landeldi’s aquaculture is a case in point. Landsvirkjun is looking forward to seeing Landeldi grow, this their innovation project is innovative and extraordinary, as well as being our first large user in Landsvirkjun’s main energy generation area in the South.”

Halldór Ólafur Halldórsson, Chairman Landeldi:

“The agreement with Landsvirkjun is key to our production. Landeldi in Þorlákshöfn is a cutting-edge innovation project, and in this agreement lies a recognition of our progress in improving the circular economy. The agreement and its size also bear witness to Iceland’s competitive advantage in renewable energy. The salmon from Landeldi is wholesome and delicious, produced in a sustainable manner, which heeds the call for increased food security.”

Landsvirkjun and Landeldi staff joined on-site for signing.

Landsvirkjun and Landeldi staff joined on-site at signing event.

Further information:

Ragnhildur Sverrisdóttir, Communications Officer, Landsvirkjun
[email protected], tel. +354 777 3800

Rúnar Þórarinsson, Director of Sustainability and Innovation, Landeldi
[email protected], tel. +354 849 8871