Creating a Greener World Together
Sustainability in a challenging year
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
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 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.
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.
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.
Landsvirkjun has started the process of developing a hydrogen production facility at the 16MW Ljósifoss Hydropower Station, about 70 km outside of Reykjavík.
"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."
“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."
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 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.
The aluminium and data center industries in Iceland enjoy competitive electricity prices that do not negatively impact the energy-intensive industries’ competitiveness in general.
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.
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
Profit before unrealised items$0m
Cash flow from operations$0m37%
Vehicles powered by renewable energy0%
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.