Icelandic power generator HS Orka and Hydrogen Ventures Limited (H2V) will partner to develop a production plant for green methanol using green hydrogen to power the marine sector, as well as domestic and commercial vehicles such as cars, vans and lorries.

This project will comprise two phases, with an initial 30MW input, followed by a second phase of a much larger scale for the production of green hydrogen. The total cost of Phase One is anticipated to be €100 million.

More than 80% of Iceland’s energy consumption is already based on renewables—primarily geothermal and hydro power.

HS Orka/H2V’s projects will focus on using geothermal energy to produce green hydrogen, which will then be used in the production of synthetic fuels. All the hydrogen created and used will be certified green hydrogen—meaning that 100% of the energy used to generate it comes from renewable sources.

We are very excited about this collaboration with H2V which has gathered great deal of knowledge and experience in managing projects of this magnitude. They realize the unique proposition of Iceland and what HS Orka’s Resource Park has to offer, but in addition to electricity, HS Orka will be able to supply them with fresh water and natural carbon dioxide, which is essential for the methanol production.

—HS Orka’s CEO Tómas Már Sigurðsson

HS Orka owns and operates more than 174 MW of geothermal power production capacity, in addition to a recently commissioned 10 MW hydro plant.