Green energy deal signed to operate land-based salmon farm in south Iceland

Landsvirkjun will supply renewable energy to Landeldi’s land-based farm in Þorlákshöfn.

Landsvirkjun and landeldi
Landsvirkjun and Landeldi staff joined on-site at signing event.
December 20, 2022

Landsvirkjun, the national power company of Iceland, and the Icelandic land-based salmon farmer Landeldi have signed a twenty megawatts green power purchase agreement (Green PPA) that will allow Landeldi’s salmon production at its land-based farm in Þorlákshöfn, South Iceland. The companies, which signed the contract at Landeldi's aquaculture facilities in Thorlakshofn, have been in negotiations since 2021 and the contract comes after the term sheet that was signed last August.

The PPA is for up to twenty megawatts of energy but the delivery can increase according to production in the coming years. Although the energy will be delivered from the current energy generation system, there are plans to meet further demand by increasing the energy generation in South Iceland.

The agreement renews Landeldi’s commitment to sustainable food production with a small ecological footprint, supporting marine conservation and the company plans to offer its products internationally with GOs (Guarantees of Origin) from Landsvirkjun, as Landeldi sees the benefit in informing consumers about the energy that is used in the production.

“Landsvirkjun’s green energy is greatly sought-after as an energy source, and the National Energy Power Company wants to prioritize energy sales to projects which support value-adding creation and sustainable use of natural resources. Landeldi’s aquaculture is a case in point. Landsvirkjun is looking forward to seeing Landeldi grow, this innovation project is innovative and extraordinary, as well as being our first large user in Landsvirkjun’s main energy generation area in the South,” said Hörður Arnarson, CEO at Landsvirkjun.

“The agreement with Landsvirkjun is key to our production. Landeldi in Þorlákshöfn is a cutting-edge innovation project, and in this agreement lies a recognition of our progress in improving the circular economy. The agreement and its size also bear witness to Iceland’s competitive advantage in renewable energy. The salmon from Landeldi is wholesome and delicious, produced in a sustainable manner, which heeds the call for increased food security,” said Halldór Ólafur Halldórsson, Landeldi’s chairman.