Landsvirkjun to Sell Electricity to GeoSalmo


Landsvirkjun and GeoSalmo have signed a non-binding term sheet for electricity sales to the salmon farming company currently preparing its land-based aquaculture in the vicinity of Þorlákshöfn. The MoU states that the companies agree on the pending Power Purchase Agreement (PPA) rationale. GeoSalmo’s plans fit well with Landsvirkjun’s prioritisation in energy sales for the coming years, as GeoSalmo utilises Icelandic resources to produce sustainable, climate-friendly, and nutritious food.

Hörður Arnarson, Landsvirkjun's CEO and Jens Þórðarson, GeoSalmo's CEO
Hörður Arnarson, Landsvirkjun's CEO and Jens Þórðarson, GeoSalmo's CEO

High-Quality Salmon in a Closed System

GeoSalmo plans to develop land-based aquaculture producing environmentally friendly and high-quality salmon in a closed system in a location west of Þorlákshöfn. The total capacity is scheduled to be up to 24,000 tonnes, with the first phase at approximately 7,300 tonnes. The company plans to become a leader in developing land-based salmon farming in Iceland and produce a high-quality product intended for the domestic market and export. Importance will be put on operations in social and environmental cohesion.

GeoSalmo is reaching the finishing stages of preparations. The company has submitted an environmental impact assessment report, and the comments deadline recently closed. The outcome for licencing should be available in the following weeks or months. These are crucial factors for operations to start. Furthermore, GeoSalmo has commissioned the Norwegian company Artec-Aqua for the design and construction supervision, as the company has successfully constructed salmon farms in Norway. In addition, the aquaculture farm will have the newest technological systems for temperature- and water quality control. Furthermore, the salmon cages will be closed, ensuring high stability in production and quality.

Hörður Arnarson, CEO Landsvirkjun:

„Demand for Landsvirkjun’s green energy is much more than we can meet. Therefore, we have had to turn down many excellent projects. When choosing our customers, we prioritise, e.g., towards serving increased general use of energy, energy transition, and innovation. GeoSalmo plans for land-based aquaculture, emphasising sustainability and environmentally friendly operations, are a good fit for our prioritisation.“

Jens Þórðarson, CEO GeoSalmo:

„I am very pleased with this stage which lays the foundation for a PPA with Landsvirkjun. Preliminary work is going according to plans, as we are now finalising the necessary licencing applications, contracts, financing, and other preparations. This project benefits greatly from the fact that Landsvirkjun is willing to take this step with us. We are optimistic about the future and emphasise that GeoSalmo operations will operate in good cohesion with the environment and the community while producing a high-quality product for our clients.“