iCeLand
Renewable eneRgy: can it lead azzi
One of Iceland’s key
the RecoveRy?
advantages is its
Below Iceland’s land mass, the tectonic plates
.com/Rhober endless supply of
of Europe and North America meet. Their
cheap geothermal
kphoto
constant movement explains the country’s
iStoc
energy...
incessant volcanic and geothermal activity. It’s
a massive source of natural energy, providing
low-cost industrial steam and electricity.
Meanwhile, pollution-free hydropower is being
developed in the mountains.
Around 90 per cent of houses are heated
from geothermal sources, developed during the
1970s oil crisis. Domestic consumers pay around
half the cost of oil or electric heating. Geothermal
steam is also used for electricity generation and
specialised industrial applications.
Yet just eight per cent of potential geothermal
energy has been harnessed, and barely a
quarter of hydropower potential. Exploitation
of waterfalls and geothermal sources has been
restricted to Icelandic companies, as has power
production and distribution.
Geothermal energy is growing fast, whereas
hydro is limited. ‘There are environmental
issues… hydro plants are very big, and have a
big impact,’ says Hilmarsson. ‘We’re concerned
about protecting the environment.’
Icelandic expertise in geothermal is exported
around the globe. ‘Companies have been formed
to capitalise on this knowledge such as Geysir Producing ‘energy supercritical fluids’ Iceland, and in partnership with 40 research
Green Energy and Enex,’ says Hilmarsson. ‘We’re requires drilling four to five km to reach fluid departments and institutions around the world.
looking at 20 to 30 places in the world.’ temperatures of 400 to 600°C – currently, ‘We have 80 faculty members teaching 40
Electricity prices for large industrial clients geothermal wells are about 2km deep. Such students from 14 different countries. Subjects
are among the lowest anywhere in Europe and systems could potentially produce up to 10 include geothermal, biofuels and energy policy.
North America. Hence the attraction to export- times more electricity than the geothermal wells Hydrogen power will be added next year; and in
oriented power-intensive industries such as being used around the world today. The IDDP time solar and wave power.’
aluminium, which consume more than half the consortium comprises three leading Icelandic It’s expensive – tuition and accommodation
country’s electricity production. power companies together with Orkustofnun for 12 months’ intensive study costs around
Alcoa, the international aluminium (National Energy Authority) and Alcoa. Pilot 58,000 euros – though less so since the krona
company, with a base in the east of Iceland, has plant testing is expected to be completed in collapsed. ‘When the crunch hit last October,
signed an agreement to support a geothermal 2015. the number of hits on our website went up, and
power research project run by the Iceland Three years ago, a School for Renewable inquiries doubled,’ says Olafsson.
Deep Drilling Project (IDDP) consortium, which Energy Science was established in Iceland. This Renewed interest from America has been
is investigating the feasibility of producing is an enterprise whose time has come; volatile catalysed by President Obama’s election –
energy and chemicals from systems where oil prices are just one reason for greater global applications for 2010 are mainly from the US.
underground water becomes ‘super-heated’ by interest in geothermal energy, especially in the Alongside the masters degree, summer schools
its close proximity to near-molten rocks. US. in renewable energy and economics, lasting
‘We’ve run geothermal programmes in from two to seven weeks, are thriving.
PeoPle costs (aPPRoximate)
Iceland for 30 years with huge success and a David Stefansson, business development
Civil engineer £4,900 a month
few years ago realised the need to deliver this to director for Geysir Green Energy (GGE) is
more than developing countries,’ says Arnbjorn convinced that his business – harnessing
Computer professional £3,800
Olafsson, the school’s director of international geothermal energy for electricity generation –
Bookkeeper £2,500
affairs. will drive Iceland’s revival.
The price of labour includes a 17.5% social cost,
‘We decided to create a graduate school GGE helps develop and operate plants
mainly pension contributions, and a 2.15% levy
offering an international masters degree in co- worldwide, and has several subsidiaries. ‘Investors
if the employee belongs to a trade union.
operation with the two largest universities in expect oil and energy prices to rise,’ he says. ‘We
16 pathfinder business l JUNE/JULY 2009
PBS12 pp12-19 Iceland.indd 16 8/6/09 12:49:35
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