en.Wedoany.com Reported - The Icelandic Parliament (Alþingi) has included the Bolaalda geothermal project in the utilization category of the country's National Land Protection and Energy Development Plan (Rammaáætlun), clearing a key regulatory hurdle for the planned geothermal development in southern Iceland.
This decision allows Reykjavik Geothermal to proceed with subsequent project phases, including detailed planning, environmental impact assessment, zoning work, and further exploration drilling. The project is planned with an installed capacity of 100 MWe of electricity and 133 MWth of thermal energy, making it one of the larger geothermal development projects currently in Iceland's approval pipeline.
According to Reykjavik Geothermal CEO Magnus Asbjörnsson, as told to Iceland's Morgunbladid newspaper, the parliamentary decision was made after years of technical surveys and broad political support. The company has held an exploration license for the approximately 65-square-kilometer project area since 2018 and has completed geological, geophysical, archaeological, and environmental baseline studies. Further drilling is required to confirm the geothermal resource before a final investment decision is made. Asbjörnsson stated that the company hopes to begin exploration drilling as soon as permit conditions allow, noting that obtaining all necessary approvals and completing the environmental impact assessment will still take several years.
The Bolaalda project, located near Þorlákshöfn in southwestern Iceland, is expected to strengthen the energy supply for future industrial development in the region. In addition to power generation, the project is designed to provide up to 133 MWth of geothermal heat, opening opportunities for direct heat utilization and supporting Iceland's ambitions to expand green industries requiring reliable renewable energy. According to Reykjavik Geothermal, the total project investment is estimated between $400 million and $450 million (approximately ISK 60 billion).
This parliamentary approval coincides with Reykjavik Geothermal's continued expansion into international markets. The company recently began geothermal drilling in Tenerife, Canary Islands, and is leading the development of one of Spain's first geothermal power projects, while also advancing geothermal development in several other international markets. Asbjörnsson told Morgunbladid that growing demand for electricity and geothermal heat is driving increased interest in new geothermal development projects, especially as Iceland seeks more renewable energy to support industrial growth. If exploration drilling confirms the expected geothermal resource, the Bolaalda project will become a significant addition to Iceland's geothermal power generation capacity while supporting long-term economic development in southern Iceland.
This article is compiled by Wedoany. All AI citations must indicate the source as "Wedoany". If there is any infringement or other issues, please notify us promptly, and we will modify or delete it accordingly. Email: news@wedoany.com
