Annual report 2020

Creating a Greener World Together



Sustainability in a challenging year

Hörður ArnarsonCEO

Landsvirkjun's operations and results were inevitably affected by the pandemic in 2020, which significantly impacted both the Icelandic and global economy. Many of our customers reduced production due to declining demand and falling product prices. Energy market prices fell sharply but recovered somewhat in the second half of the year. Some of Landsvirkjun’s power contracts are linked to aluminium prices and electricity prices in the Nord Pool market.


Foresight and a green future

Jónas Þór GuðmundssonChairman of the board

Thinking ahead is essential in the energy sector. The power stations we build today provide power for tomorrow. Power projects are designed to meet the energy needs of the future and can take years to complete. We owe a great deal to the pioneers who had the foresight to develop energy production and energy systems in Iceland in the last century, fundamental to our quality of life today.

Highlights from 2020

Landsvirkjun successfully issues debut SDG-linked US Private Placement

Landsvirkjun has signed an agreement with US and UK institutional investors to issue USD 80 million senior unsecured notes in the US Private Placement (“USPP”) market.

Silica-rich skin products sourced from geothermal water

Landsvirkjun and MýSilica have signed a contract to research, develop and produce silica-rich skin and cosmetic products, sourced from geothermal water, produced by Landsvirkjun‘s geothermal stations in the North of Iceland.

12 billion ISK allocated for construction projects and discounts to energy-intensive customers

Landsvirkjun intends to allocate approximately ISK 12 billion to completing various new projects, refurbishments and maintenance work in energy production areas over the next three years.

New dividend policy

At Landsvirkjun‘s board meeting, on April 20, 2020, the board of directors agreed on a new dividend policy for the company.

Green hydrogen is an environmentally friendly energy carrier

Landsvirkjun has started the process of developing a hydrogen production facility at the 16MW Ljósifoss Hydropower Station, about 70 km outside of Reykjavík.

Orkídea is a new collaborative, innovation project in the South of Iceland

"The current economic situation has shown us that supporting innovation and improving the utilisation of natural resources in Iceland is more important than ever. We mustn´t take a defeatist attitude during these unprecedented times but rather strive to explore new avenues."

Challenging economic conditions put pressure on demand

“Landsvirkjun’s results for the first half of the year reflect the difficult economic conditions throughout the world. The COVID-19 pandemic has adversely affected demand of our largest customers, which is reflected in the revenues for the period, in particular for the second quarter."

An agreement made to explore the possibilities of green hydrogen export from Iceland to Rotterdam

Landsvirkjun, the National Power Company of Iceland, and the Port of Rotterdam have signed a Memorandum of Understanding ("MOU”) to perform a pre-feasibility study of exporting green hydrogen from Iceland to Rotterdam.

Tinna Traustadóttir and Ríkarður S. Ríkarðsson appointed as Executive Vice Presidents  

Tinna Traustadóttir and Ríkarður S. Ríkarðsson have been appointed as the Executive Vice Presidents of the new Sales and Customer Service and Business Development and Innovation. The Marketing and Business Development Division will no longer exist.

Energy-intensive industry electricity prices are competitive

The aluminium and data center industries in Iceland enjoy competitive electricity prices that do not negatively impact the energy-intensive industries’ competitiveness in general.

CDP Recognises Landsvirkjun as a Leader in Climate Change Action 

The CDP has recognised Landsvirkjun as a leading company in the worldwide battle against climate change, earning a grade of A- on their Climate list. CDP is a non-profit organisation, that runs the global disclosure system, gathering and distributing information and advising on continuous improvement on environmental issues.

Blámi Project Launched

Landsvirkjun, the Westfjords Regional Development Office and the Westfjord Power Company have today signed a cooperative agreement to launch Blámi, an energy transition and innovation project.

Activities and operations of the year

  • Operating revenues

  • Profit before unrealised items

  • Cash flow from operations

  • Net debt

  • Equity ratio

  • Carbon footprint

  • Greenhouse gas

  • Carbon sequestration

  • Vehicles powered by renewable energy


Annual report 2020

Landsvirkjun's Annual Report has been published electronically since 2013, and we began posting it on our website in 2014. This year’s report will be published in a slightly different format. The front page can still be found on our website, but the report is mainly a collection of PDF-files. In addition to the main document you are currently reading, you will find separate documents for our Financial Statements, Climate Accounting and the GRI Sustainability Report. All these documents can be accessed here above.