Why Iceland is the Climate Tech Capital of the World

It is a rugged, tough-to-tame island that features the unpredictable fire of active volcanos and the ice of Arctic freezes.

But the people of Iceland – like their Norse ancestors – punch above their weight.

For it is also the land of extraordinary climate tech innovation, including carbon capture and storage, geothermal, biotech and more.

If one location encapsulates this resourcefulness, it is the Geothermal Park at Hellisheiði.

The park is owned by Orka náttúrunnar (ON Power), one of Iceland’s leading green energy companies.

It is located on 103 hectares at the site of the Hellisheiði power plant and is a place for climate tech and food tech start-ups and established businesses to grow.

Power station of the future

Hellisheiði is the largest geothermal power plant in Europe and its presence is easy to identify from the steam that rises and hangs overhead.

It is in a geographical location that is ancient, but where the innovation and vision are futuristic.

Árni Hrannar Haraldsson, CEO of ON Power, explains the vision, saying: “Our vision for ON Power‘s Geothermal Park is to create a unique platform where clean geothermal energy and its derivatives are transformed into new opportunities, for the environment, for innovation and for society.

“The Geothermal Park is not just a pilot; it’s a power station of the future, built on sustainability and ingenuity."

Alongside ON Power, the park features:

• Carbfix – which takes waste CO2, buries it underground and turns it into stone within two years
• Climeworks – a Zurich-based direct air capture company
• VAXA Technologies – a biotech research business that converts clean energy into food, in the shape of sustainable microalgae.

Árni adds that the climate tech cluster shows how a genuine circular economy can take shape, where “climate solutions, food production, carbon removal and energy production work in tandem”.

Together, stronger

Collaboration is not just a word here: it is as embedded in the DNA of the businesses as CO2 is in the ground where Carbfix does its work.

Edda Sif Pind Aradóttir, CEO of Carbfix, says: "Our mission at Carbfix is to significantly contribute to climate recovery through safe and proven carbon mineralisation. Collaboration is a cornerstone of this mission.

“By working hand-in-hand with local and global researchers, policymakers and industry leaders, we amplify our impact and accelerate innovation."

While many businesses and global organisations talk about the need to work together, at Hellisheiði they can see the idea in action.

Sara Lind Guðbergsdóttir, Country Manager, Climeworks, agrees.

The direct air capture company’s Mammoth facility is at Hellisheiði, removing carbon from the air.

Sara says: “Mammoth is a technological milestone – and a testament to collaboration.
“It benefits from a unique ecosystem of companies working side by side and sharing access to renewable energy resources – from electricity to geothermal heat and cooling.”

She adds: “This integrated approach makes our operations more efficient, sustainable and scalable.”

A vision for the future

When some of the most innovative climate tech brains are based a snowball’s throw from each other, progress is inevitable.

At Hellisheiði, the next step is to develop an innovation hub, called Glóð (which translates as ‘glowing embers’).

Ingunn Gunnarsdóttir, Leader of Innovation at ON Power, says: "Being first-of-a-kind comes with challenges, but also great opportunities, and with our upcoming innovation hub, Glóð, we're building a bridge between groundbreaking ideas and the real-world testing they need to thrive.”

Ingunn adds: “Our goal is to foster a vibrant community where researchers, start-ups, and entrepreneurs can engage directly with unique geothermal resources, develop scalable solutions and contribute to a more sustainable future – together." 

Sara takes that vision into the stratosphere, saying: “This plant embodies our shared vision: to take long-term carbon removal from the atmosphere from pioneering to planetary scale.”

Potential industries in the park

VAXA Technologies is a different but complementary business at Hellisheiði, converting clean energy from the geothermal park into nutrient-rich microalgae, an increasingly popular and sustainable super food.

Kristinn Haflidarson, General Manager, says: "VAXA's location in the ON Geothermal Park at Hellisheiði is strategic, because the park allows for all of VAXA's sustainable energy needs and for a circular economy, both in resources and services.”

The vision for the park is to keep on growing, drawing in more industries at the cutting edge of climate tech, all benefiting from the natural power station beneath the earth.

They could include:

• Agri- and aquaculture
• Data centres
• E-fuels
• Electronics/energy storage
• Sustainable materials
• Tourism.

When it comes to Iceland – and Hellisheiði in particular – the ground is the source and the sky is the limit.