Project Development put on Hold
Landsvirkjun, the National Power Company of Iceland, has since 2022 explored the feasibility of producing green e-methanol at Bakki near Húsavík in Iceland in collaboration with PCC SE, that owns and operates the Bakki PCC silicon plant. It has now been decided to put the development of this project on hold indefinitely.
The aim with this project was to produce carbon-neutral e-methanol by capturing CO₂ from the silicon plant and utilizing renewable electricity generated by Landsvirkjun. The goal was to provide a sustainable fuel alternative for the shipping sector, supporting Iceland’s energy transition.
The decision of putting the project on hold was taken last December and is based on a challenging business environment for e-fuel production and limited demand for the product, in particular at the price required to realize a profitable project. Despite this decision, Landsvirkjun continues to believe in the importance of green e-fuels for the energy transition of the maritime sector in the long term and may consider revisiting the project in the future if market conditions become more favourable.
This decision is in line with Landsvirkjun’s new company strategy on e-fuels and climate-related business development, in which Landsvirkjun states that it does not consider larger e-fuels projects competitive in the short term but that this could change in the long term.
