Green E-Fuel: Driving the Energy Transition

The Driving Force Behind the Energy Transition

Fjarðarorka is advancing plans to produce e-fuel in Reyðarfjörður, aiming to generate 220 thousand tons of green ammonia annually to power the energy transition for ships. By using this production for energy transition, carbon dioxide emissions could be reduced by around 500 thousand tons per year. For perspective, emissions from Iceland’s fishing industry were measured at 565 thousand tons in 2021, while road transport accounted for 860 thousand tons.

Wind Power Fuels E-Fuel Production

To generate green electricity for e-fuel production, Fjarðarorka plans to develop a 350 MW wind farm in Fljótsdalshreppur. Land lease agreements with local landowners have been secured, and preparations for permits, planning, and environmental assessments are underway.

Fjarðarorka's Plans Align with Government Goals

Production of Green Ammonia

Green ammonia is emerging as the ideal fuel for the maritime energy transition.It offers better storage and transportation options than hydrogen and has a smaller carbon footprint than methanol. The production process involves generating hydrogen from water using renewable energy, which is then converted into ammonia by binding it with nitrogen extracted from the atmosphere.

Guided by Circular Economy Principles

Ammonia production generates thermal energy and oxygen as by-products. Efforts are already underway to explore how these can be utilized for value creation in collaboration with other partners. By following circular economy principles, there are significant opportunities for value creation for society and businesses in the East. For example, thermal energy could potentially be used for heating in Reyðarfjörður through a district heating system.

Collaboration Platform for Green Opportunities in the East

To promote the circular economy in East Iceland, Fjarðarorka co-founded Orkugarður Austurland (OGA) in partnership with Fjarðarbyggð, Fljótsdalshreppur, and various cross-sector enterprises from the region. OGA functions as a collaborative platform to harness green opportunities associated with the energy transition in East Iceland.

Fjarðarorka

Fjarðarorka is owned by the investment fund CI ETF I, which focuses on green energy projects. The fund is managed by Copenhagen Infrastructure Partners (CIP), an organization with extensive experience in developing and investing in green energy projects worldwide.