HS Orka has initiated exploration drilling at Sveifluháls in Krýsuvík, Iceland, to enhance understanding of the local geothermal system. The campaign involves drilling multiple wells to assess high-temperature resources for potential energy production. A proposed geothermal power plant in the Sveifluháls area is expected to generate 100 MW of electricity and provide heating for up to 50,000 residents.

Employees of Iceland Drilling together with drilling operation managers from HS Orka, in from of the Odin drilling rig

The drilling plan includes a directional well extending up to 2,750 meters and reaching depths exceeding two kilometers beneath Sveifluháls. This well aims to confirm the presence of viable geothermal resources in the Sveifluháls-Austurengjar area. Additional deep exploration wells are scheduled, with preparations, including environmental impact assessments, already underway for future drilling sites.

Iceland Drilling is conducting the operations using the Odin drill rig, which primarily runs on electricity, minimizing oil use except during the initial weeks until a new transformer station is operational. The drilling is managed to align with environmental considerations in the Krýsuvík region.

If the exploration yields positive results, HS Orka plans to construct a geothermal power plant at Sveifluháls, though the exact location remains undecided. The decision will depend on drilling outcomes, environmental assessments, and the area’s natural and economic context. An environmental evaluation for the proposed construction is in progress, with the project timeline spanning nearly a decade. The Sveifluháls power plant was included in Iceland’s 2016 list of planned geothermal projects.

The Krýsuvík area, owned by Hafnarfjörður Municipality, is a popular destination for outdoor recreation and tourism while also holding industrial significance. The geothermal project aims to ensure a stable hot water supply, reducing reliance on the Nesjavellir and Hellisheidi power plants in the Hengil area. In June 2024, HS Orka and Hafnarfjörður Municipality signed an agreement covering research, land use, and resource utilization rights for the Krýsuvík project.

The agreement also promotes collaborative efforts to develop sustainable initiatives, such as eco-friendly tourism, outdoor recreation facilities, and green businesses like algae cultivation and greenhouse farming, inspired by HS Orka’s Auðlindagarðsinn model at Svartsengi and Reykjanesvirkjun. These efforts aim to harmonize energy development with environmental preservation and local economic growth.