The Reykjanes Geothermal Resource Park (GRP), or as it is more commonly known, The Blue Lagoon Geothermal Spa, is located on the Reykjanes peninsula in southwestern Iceland, some 50 km from the capital Reykjavik. Aligned with the world’s first geothermal Combined Heat and Power (CHP) plant in Svartsengi, the Reykjanes GRP is based on ideas derived from aboriginal values of harnessing nature’s powers (Albertsson & Jónsson 2010), and sharing excess streams with other companies.
Geothermal source for development
Beneath the barren lava fields in the sparsely populated Grindavík municipality lies a ground water reservoir, tapped for its resources by HS Orka hf since 1977. The company sees the geothermal energy as more than just energy and has found ways to extract several resources. Based on the philosophy of creating multiple sources of revenue and thereby spreading financial risk, the initial Resource Park in Svartsengi was developed as new companies were created or affiliated. Since 2007, HS Orka hf has also run a second geothermal CHP plant in the area, which is already cooperating with several other companies in a successful industrial symbiosis. Focusing on the region’s main industries, the majority of the linked companies work in the fishing and tourism sector, but the diversity of businesses is growing. There is also a close cooperation with Iceland’s largest university campus, and research and development is of high priority to HS Orka hf, the steaming giant in the centre of it all.
Fuelled by informal dedication
Dialogue and communication between the actors take place on a daily basis in informal meetings, as the Resource Park has developed without formal cooperation and coordination. Flexibility, communication, openness for collaboration, and understanding of each other’s needs are emphasized as crucial success factors. Sustainability is also a common focus for the companies, and the economy of Grindavík municipality relies to a large extent on the responsible exploitation of natural resources. Geothermal energy and sustainable fishing are focus areas of the local administration’s green growth policy, although geothermal energy can cause emissions of mainly sulphur, heavy metals, and CO2. The municipality encourages small-scale activities within the focus areas, and can apply for state grants in support of initiatives that are in accordance with the green growth policy and the Resource Park ideology.
Svartsengi, the Blue Lagoon and beyond
Iceland’s most popular tourist attraction, The Blue Lagoon, was accidentally created after the commissioning of the CHP plant in Svartsengi, as outlet water from the power plant formed a lagoon. The effects of brine on the porous lava rock was found to promote the healing of skin conditions, and today there is a spa, a dermatological treatment clinic, and a research centre. The three companies operate in close connection with each other and share research and development with Svartsengi. The industrial symbiosis now also includes a carbon recycling company, which turns CO2 from the power plant into methanol; a molecular farming company, which uses water and electricity from the power plant to produce proteins and growth factors from barley; and a data centre that is fully run on geothermal energy.
With the inclusion of the second power plant in Reykjanes, the diverse family of companies also involves a tourist and exhibition centre, a fish drying facility and a fish farm. One idea is to use heated cooling water released from the power plant to cultivate algae for biofuel production, and keep a warm water aquaculture plant that could be fed with bio-waste from the algae farm (Albertsson & Jónsson 2010).
Regional dimension
Connecting companies from such different sectors builds a diversity that in turn can provide strong resilience, both for the businesses as well as the municipality. The stakeholders’ shared values of sustainability give them a common platform, from which the entire nation can benefit as the energy provider and strongest actor in the symbiosis strives to “enable Iceland to become the first country in the world with a totally green, zero carbon emission economy”. This would provide green jobs and strengthen the economy in a country struck hard by financial recession but with vast potential to thrive sustainably.
Learn more…