Strong Financial and Environmental Performance

Highlights from Landsvirkjun’s Annual Report 2022:

• Landsvirkjun’s earnings were at a record high.
• Total emission intensity was reduced by 2% year on year, down to 3.5 gCO2-eq/kWh; the EU defines electricity as mitigating measures against climate change when emissions from generation are lower than 100 gCO2-eq/kWh.
• Record-breaking energy generation of 14.8 TWh.
• Power stations’ operations were solid during winter storms and low water budget season.
• Landsvirkjun’s carbon footprint was under 17,000 tonnes CO2-eq, a slight hike year on year due to increased geothermal energy generation to meet higher demand for electricity and low water levels in reservoirs in the first half.
• Power Purchasing Agreements were made with Reykjavík DC and Landeldi, as well as an addendum to the agreement with Norðurál.
• Landsvirkjun aims to be carbon neutral by 2025, and the Company’s carbon footprint has been reduced by 60% from 2008.
• Demand for green energy is high, and the energy system is operating almost at full capacity.
• Several energy-related business and innovation development projects were further developed, including electric fuel generation and eco-industrial parks.
• The power stations options that are in advanced preparatory stages are the Hvammsvirkjun power station, the windmill farm at Búrfellslundur, the expansion of the Þeistareykir power station, and new hydroelectric power stations in Blanda power station, besides the power increase in hydropower stations in the catchment area of the river Þjórsá.
• Landsvirkjun’s financial contribution to the Icelandic economy was over ISK 71 billion in 2022.
• Emissions from fuel combustion were reduced by 14% year on year due to the Company’s systematic approach to the energy transition.
• Average prices to large-end users without transmission were historically high, or USD 42.9 per MWh.
• Net debt was reduced by over ISK 93 billion in 2022.
• An agreement for selling the Company’s share in Landsnet, the Icelandic TSO, was reached between Landsvirkjun and the Icelandic State.

The Annual Report provides an extensive discussion of Landsvirkjun’s operations.

The Annual Report website highlights the main points and includes links to the Annual Report, the Climate Account, and the Financial Statement for 2022.

Bureau Veritas, the international audit company, certifies and audits Landsvirkjun’s greenhouse gas emissions and carbon sequestration.

The Annual Report was published in accordance with GRI Standards; therefore, the Annual Report is a sustainability report, as sustainability is a core principle in Landsvirkjun’s operations.