We pride ourselves on leading the way in environmental matters. This includes looking at producing hydrogen for the domestic market and opportunities for exporting hydrogen. Hydrogen is seen as an attractive energy option that could replace fossil fuels, in particular for larger vehicles such as LGVs, heavy construction equipment, ships and aircraft. Hydrogen production requires large quantities of energy, and the demand for green hydrogen is expected to increase in the coming years alongside climate goals. We want to participate in shaping Iceland’s green future and contribute to freedom from using diesel and petrol as the main energy sources for transport by 2050.
We still have a long way to go when it comes to producing hydrogen in Iceland, but there are many opportunities, which is why we have invested effort in assessing hydrogen and electrofuels as energy sources. We have talked with potential buyers of hydrogen here in Iceland, and considered how distribution could best be managed. We are also looking into exporting hydrogen and electrofuels, and whether the product would be competitive, for mainland Europe end users, for example.
There are still few hydrogen-powered vehicles in Iceland. But awareness has risen sharply recently regarding the benefits of hydrogen and electrofuels and the role these energy sources could play in reducing atmospheric carbon emissions.
Hydrogen production in Iceland has a number of benefits:
- Clean, domestic energy sources reduce diesel and petrol imports. This means lower greenhouse gas emissions and foreign reserves savings.
- The production cost for green hydrogen in Iceland is among the lowest in the world. This is based on a stable supply of 100% renewable electricity at a favourable price.
- An opportunity for Iceland’s energy companies to lead the way towards a sustainable society through improved utilisation of resources and processing systems, as well as increased profitability.