Emissions Remain Among the Lowest

Landsvirkjun’s carbon intensity in 2023 was 3.3 g CO2eq/kWh, showing a 7% increase year on year. While this is a significant rise, it is crucial to emphasise that the Company’s emissions are still below 4.0 g CO2eq/kWh, the defined threshold in Landsvirkjun’s Climate and Environmental Policy. Furthermore, the EU recognises hydropower and geothermal electricity generation as contribution to climate change mitigation when emission levels are below 100 g CO2eq/kWh.

However, emissions from electricity generation from hydropower or geothermal energy are unequal. In 2023, emissions from geothermal energy generation were 29 g CO2eq/kWh, an increase of 5% year on year. This is partly due to increased well discharge testing. Nevertheless, as mentioned earlier, the carbon intensity is less than one-third of the above EU threshold.

Emissions from hydropower energy generation were only 0.6 g CO2eq/kWh, an increase of 9% year on year, mainly due to more extended ice-free periods in the reservoirs.

The carbon footprint (emissions less carbon sequestration) was 0.9 g CO2eq/kWh, an increase of 22% year on year. In addition to the increase in emissions from hydropower and geothermal energy generation, emissions from steel and cement production used in the Company’s construction projects are also accounted for.

Emissions from burning fossil fuels decreased by 11% year on year, a significant achievement. Landsvirkjun systematically replaces fossil fuels with green fuels for vehicles and equipment. This transition has been so successful that the Company plans to completely halt the purchase of fossil fuels by 2030, a testament to Landsvirkjun’s commitment to a sustainable future.

Landsvirkjun publishes the Climate Accounts annually, making quantitative information on the company’s emissions available. The methodology of the Greenhouse Gas Protocol (GHGP), an international standard for companies’ GHG emissions data disclosure, is used in the Climate Account.

Landsvirkjun’s Climate Account has been audited and verified by Bureau Veritas since 2018. Thus, the Company ensures that results follow the emissions from operations.

Landsvirkjun's electricity generation has a very low carbon footprint and prevents carbon emissions from the use of other energy sources with a larger carbon footprint. Avoided emissions, or emissions our electricity generation prevents, are part of Landsvirkjun’s contribution to climate action. In 2023, avoided emissions from energy generation were assessed as 2.6 million tonnes CO2eq.

Landsvirkjun, the national energy company, has succeeded in having one of the lowest carbon footprints of all companies in the energy generation industry and is a global leader in climate action.