Krýsuvík

The geothermal area in Krýsuvík is divided into four sub-areas: Austurengjar, Sveifluháls, Sandfell, and Trölladyngja. Aspirations for utilizing the geothermal resource in Krýsuvík have a long history, and the residents of Hafnarfjörður, along with the resource utilization holders in the area, have paid attention to the area for decades, both for electricity production and district heating that could serve nearby urban areas. Numerous shallow boreholes exist in Krýsuvík, which were drilled in the last century, but HS Orka has so far only drilled deep exploration wells in Trölladyngja. 

In the summer of 2024, the municipality of Hafnarfjörður and HS Orka signed an agreement on research and utilization of resource rights in Krýsuvík for the production of hot water, fresh water, and electricity. The goal is to increase the reliability of hot water supply in Hafnarfjörður and other parts of the capital area, as well as to meet the growing demand for electricity in the country. Development of ideas for a Resource Park will occur simultaneously, focusing on outdoor activities, eco-friendly tourism, and green economic activities. 

HS Orka was granted a permit for exploration drilling in the Krýsuvík area at the beginning of 2024, and preparations for drilling have already begun. Drilling is expected to start in early 2025. 

HS Orka has reached an agreement with Veitur ohf. for potential collaboration on water acquisition and hot water production for Veitur ohf.'s distribution system. Efforts will be made in 2024 to establish a basis for cooperation between the two companies. 

The total assessment by the National Energy Authority of the Krýsuvík area as a geothermal system is between 270 MW and 800 MW, with a median value of 445 MW for estimated electricity production capacity.