Annual Report 2021

Embrace the Future



Success That Matters

Hörður ArnarsonCEO

Renewable energy is key to fighting climate change. A good example of that is Landsvirkjun’s success in minimising greenhouse gas emissions from its operations. The Company’s carbon footprint was only 1.2 gramme of carbon dioxide equivalents per kilowatt hour, which is exceptionally low, even when compared to emissions from renewable energy generation elsewhere in the world.


Increased Dividend Payments to the People of Iceland

Jónas Þór GuðmundssonBoard Chairman

A definite breakthrough in Landsvirkjun‘s operations occurred when the debt ratio became comparable to the indicators used at the sister companies in the Nordic countries. This means that it is no longer necessary to place main emphasis on reducing the debt, thus, creating more flexibility to pay higher dividends to the owner of Landsvirkjun, the people of Iceland.

Highlights from 2021


Iceland Can Complete the Energy Transition

A clear consensus has been reached among countries to limit the average temperature increase to 1.5°C. This was manifested at the recently ended Glasgow Climate Conference, COP26, and by the Glasgow Climate Pact, signed by the participant countries.


Landsvirkjun Agree on Remuneration for Utilisation Rights in the Þjórsá Area

The Prime Minister‘s Office and Landsvirkjun have reached an agreement on remuneration for Landsvirkjun‘s utilisation of water- and ground rights in an area at the river Þjórsá, within the public land.


MoU for a new Green Energy Park in Reyðarfjörður

The municipality of Fjarðabyggð, Landsvirkjun and Copenhagen Infrastructure Partners (CIP) have signed a Memorandum of Understanding on the development of a Green Energy Park in Reyðarfjörður.


New Landsvirkjun electricity contract boosts atNorth's data centre expansion

Landsvirkjun has signed a new two-year electricity contract, to support continued growth of atNorth data centres.


Landsvirkjun and Verne Global sign new green power contract

Landsvirkjun and Verne Global hf. have today announced the signing of a new power contract, valid until 2030.


Landsvirkjun‘s credit rating upgraded

S&P Global Ratings has upgraded the credit rating for Landsvirkjun by one notch, to BBB+ from BBB. The outlook is stable.


Landsvirkjun pays 50mn USD dividends for 2020

The Board of Landsvirkjun's proposal for a 50 million USD dividend payment to owners for the year 2020 was approved during the Annual General Meeting, held today.


Amended agreement delivers stronger competitiveness for Straumsvik smelter

Landsvirkjun and Rio Tinto Iceland have agreed on amending the power purchase agreement (PPA) between the two companies dating back to 2010.

Key figures

  • Operating revenues

  • Net debt

  • Profit before unrealised items

  • Equity ratio

  • Percentage of women in managerial positions

  • Percentage of women in executive positions

  • Net carbon intensity


    CO2e kWh

  • Carbon footprint

    0th. tonnes3%


  • Avoided emissions from energy generation

    0m. tonnes15%


Annual Report 2021

Landsvirkjun’s Annual Report has been published electronically since 2013 and has only been available on the Company’s website since 2014. The Climate Account and the Sustainability Report, which have been published separately in the last years, are included in the Annual Report 2021 for the first time. The objective is to highlight these core issues and provide a more convenient access to information about Landsvirkjun’s operations, for stakeholders.