Long-time experience of geothermal heat utilizationReykjavik, Iceland

March 4, 2015

Geothermal

Heat

Iceland use of geothermal

Space heating

45%

Electricity Generation

39%

Swimming Pools4%

Snow melting4%

Fish Farming4%

Industry2%

Greenhouses2%

Geothermal district heating

Nesjavellir combined heat & power

Swimming pools

• …

• Swimming pools elementary part of social life, year round

• 163+ recreational swimming pools, 134 with geothermal heat

• Overall 90% of swimming pool heated by geothermal

Greenhouses

• 194,000 m2 of greenhouse space, significant growth expected

• Plans for new greenhouse for organic tomatoes for export

• Largest banana plantation north of the Alps

Other direct use examples

Fish farming Snow melting

Tourism

Methanol

HISTORY

Snorralaug

• Hot pot in Reykholt

• Snorri Sturluson, 1179-1241, Icelandic historian, poet and politician and author of on of the Edda sagas

• Bathing mentioned in the Icelandic sagas of the 12th century

Early geothermal use

Þvottalaugar hot springs in Laugardalur, Reykjavík. Picture taken around 1900.

Initial steps in geothermal heating

• 1908/1911 Farmers using hot water/ steam from geothermal well to heat their houses

• 1917‒1918 Great Frost Winter and WWI causing coal to be rationed

• 1930 First DHS in Reykjavik • 1937‒1938 Bill for

Geothermal Research introduced to the parliament which didn’t pass.

• 1938 Expansion of the DHS was an influential part of the municipality elections in Reykjavik

Next steps to 1983

• 1940‒1945 National Research Council supported exploration drilling into high temperature systems.

• 1953 The parliament passed a law allowing the state to finance up to 80% of the total investment cost of drilling and building a DHS outside of the capital area.

• 1961 Geothermal Energy Fund and State Drilling Company established offering financing for research and drilling. R&D within a state institution

• 1961‒1983 Over 350 loans issued for drilling and building DHS across the country and over 20 DHS built.

DH system today

• Reykjavik DHS largest in the world, 75 million cubic meters per year of hot water to ca 200,000 inhabitants (ca. 1,500 MW thermal)

• Fueled by low-temperature fields in and around Reykjavík.

• 52 wells deliver total of 2,400 liters/ s of 62–132°C hot water used directly (ca. 55% of supply)

• Secondary supply from high-temperature field at Nesjavellir (ca. 20km from the city) – heated groundwater (ca. 45%)

Benefits to Iceland

• Monthly cost of heating a 100 m2 apartment: ~ € 45 ($ 50)

• Cumulative oil savings since 1960: • ~$ 22 billion (€ 20 billion) • 5x the Icelandic treasury budget

OUTLOOK

Direct use business opportunities

• Electricity: limited development in Iceland, need to go abroad

• Direct use: still untapped potential and interesting start-ups that could be exported

• District heating: fragmented market, Iceland’s role in the EU/ EEA, where are the accessible markets and funding?

Challenges of the (Icelandic) sector

Iceland-EU Geothermal Roundtable

• Opening doors for geothermal in ongoing energy security discussions

• Heating represents about 50% of energy demand in Europe

• Dependence on Russian gas• Opportunities in Europe• Programs not adequate for

needs of geothermal sector• Need to take influence in

debate AND steer towards usable programs, funding and projects

International roundtable, September 18-19, 2014

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