Skip to contentLandsvirkjun

Climate Action

We take climate change seriously and are proud of our contribution to addressing it. Landsvirkjun’s energy production aligns with global goals to limit global warming to 1.5°C. We aim to do even more and will continue working systematically to reduce greenhouse gas emissions from our operations.

Here we outline our contribution to climate action, our climate impact, and how we work to reduce it.

Emissions Among the Lowest Globally

Energy from renewable resources plays a key role in the fight against climate change. All of Landsvirkjun’s energy production is a significant contribution to mitigating climate change and supports the global goal of limiting global warming to 1.5°C since the Industrial Revolution.

Emissions from Landsvirkjun’s energy production are, and will remain, below the thresholds set by the Science Based Targets initiative (SBTi) for limiting global warming to 1.5°C, and by the International Energy Agency (IEA) for achieving a net zero world, now and in the future.
Emissions from Landsvirkjun’s energy production are, and will remain, below the thresholds set by the Science Based Targets initiative (SBTi) for limiting global warming to 1.5°C, and by the International Energy Agency (IEA) for achieving a net zero world, now and in the future.

Our energy generation has one of the lowest carbon intensity in the global energy sector. Industries powered by green, renewable energy have a lower carbon footprint for their products and services. Such industries lead to reduced use of fossil fuel, improved resource efficiency, and serves as an important platform for innovation, awareness-raising, and increased value creation.

Making Good Even Better

We work to increase electricity generation in line with the global goal of keeping warming below 1.5°C, thereby strengthening our contribution to climate action. In addition, we actively work to reduce greenhouse gas emissions from our operations.

The largest source of emissions in our operations comes from geothermal stations. We have set a target to reduce carbon intensity of geothermal generation by 80% by 2030 compared to 2008. By 2050, emissions from geothermal stations are expected to be largely eliminated.

We know that energy transition plays a key role in the fight against global warming. That is why we plan to stop purchasing fossil fuels for vehicles, backup power units, and other equipment by 2030. We have worked hard to electrify our vehicle fleet and have installed fast-charging stations at all energy production sites. In cases where electrification is not possible, we use hydrogen-treated biofuel, which produces much lower emissions than conventional diesel.

Building new power stations inevitably increases greenhouse gas emissions during construction. Our lifecycle assessments show that most of these emissions come from fossil fuel use during construction and from the production of steel and concrete used in the structures. We have set ambitious targets to reduce emissions from these three sources. We take action both during the design and construction phases and use an internal carbon price as a financial incentive for our contractors to reduce emissions.

Life Cycle Analysis

We use Life Cycle Assessment (LCA) to assess the overall environmental impact of our electricity generation at all stages of the value chain. This means that we examine the life cycle of power stations – from the procurement of raw materials during their construction to their demolition at the end of their life cycle – and assess the environmental impact of generating electricity from a given resource at a given location.

We assess the environmental impact of the procurement of raw materials, the production and transport of building materials, the production and transport of mechanical and electrical equipment, construction, energy use, the operation of the station, and its demolition at the end of its lifespan. We use the findings to reduce the environmental impact of the operation of specific power stations and to reduce the environmental impact of new power stations in the future.

The findings of life cycle assessments also help us inform buyers and other stakeholders about the electricity’s environmental properties. The information can also be used by third parties, such as manufacturing and industrial companies, in assessing the environmental impact of the production of their own products.

Life cycle assessments provide us with important information about the breakdown of the total carbon footprint of specific power stations. For example, findings indicate that in the production of building materials and during construction, it is steel and concrete, as well as the use of fossil fuels, that leave the largest carbon footprint. This is why we place particular emphasis on minimising the impact of these three factors when designing and building new power stations. Life cycle assessments conducted on our power stations are carried out in accordance with international standards.

Life cycle assessments conducted on our power stations are carried out in accordance with international standards. They are available below.

Life Cycle Assesments

Hörður Arnarson, CEO of Landsvirkjun

“Climate change affects us all.

As a state-owned energy company, we have a responsibility to respond to the situation we now face. We want to contribute to the fight against climate change, which is one of humanity’s most urgent challenges.”