ON Power has received grants from the Climate and Energy Fund for projects that support increased innovation, improved utilization, and value creation. The grants are part of a major allocation by the fund, which awarded a total of ISK 600 million to projects in the field of geothermal utilization.
The ON Power projects that received funding are “Infrastructure for Research and Innovation for the Cascaded Use of Geothermal Fluids,” which receives ISK 25 million; “Cascaded Use of Geothermal Energy and Opportunities for Value Creation from Geothermal Fluids,” which receives ISK 7.3 million; and “Improved Efficiency of Heat Exchange,” which receives ISK 6 million.
The aim of the projects is, on the one hand, to build infrastructure for a planned center for innovation, Glóð, and to explore how geothermal fluids can be better utilized for diverse value creation, for example, by developing solutions that maximize resource efficiency and create new opportunities in the energy transition and circular economy. On the other hand, the projects aim to improve heat-exchange efficiency, thereby increasing energy efficiency and reducing waste.
“These grants are important in supporting the journey we are on and will, among other things, help us develop ON Power’s Geothermal Park, where the focus is on fully utilizing the outputs of the Hellisheiði Power Plant in a responsible and environmentally friendly way while creating value,” says Árni Hrannar Haraldsson, CEO of ON Power.
The allocation from the Climate and Energy Fund is part of the government’s emphasis on increased technological development and innovation in geothermal energy. The projects receiving grants this time are diverse, ranging from deep drilling to the development of equipment and improved heat utilization.
The largest grant was awarded to Reykjavík Energy, ON Power’s parent company, for the continued development of the IDDP deep drilling project at Nesjavellir. The project is a collaboration between Reykjavík Energy, Landsvirkjun, HS Orka, and the government. The aim is to drill deeper into the earth and harness geothermal energy at higher temperatures than previously possible. If electricity generation using this method proves successful, it could multiply each borehole’s production capacity in the coming years.
“It is extremely encouraging to see the government supporting innovation and technological development in geothermal energy in such a targeted way. This is crucial for continued progress in the utilization of renewable resources and strengthens Iceland’s position internationally,” says Árni Hrannar.
