Our power plants

ON Power produces and sells electricity to the entire population, in addition to producing hot water that is sold to Veitur Utilities.

We are at the forefront of eco-friendly energy transformation in Iceland and innovation in the utilisation of natural resources.

  • Inside a turbine hallWe have reached ambitious climate change targets and aim to do even better. We want to utilise natural resources with responsibility and consideration to enhance the quality of life of present and future generations.
  • We play a leading role in land reclamation and in our construction work we preserve the original vegetation and use it to restore the land. We have developed and used unconventional methods in land reclamation. For example, we use moss mixed with buttermilk to restore moss mats.
  • We are pioneers in developing solutions to reduce geothermal gas emissions and we have developed the so-called Carbfix method, which filters and re-injects the carbon dioxide and hydrogen sulphide in the geothermal reservoir dissolved in geothermal fluids. In the geothermal reservoir, gases mineralise in the rock and form Iceland spar and pyrite. This is a process that is used to reduce carbon dioxide in the atmosphere and has attracted global attention as an important step towards reducing our carbon footprint.
  • We have also developed and built up a unique workshop where top quality repairs of a global standard are carried out on the power plants’ equipment.

Our power

The geothermal steam plants in Nesjavellir and Hellisheidi were built to meet the increased need for hot water in the community. In our power plant areas there are a 1000-3300 metre deep boreholes from which water-mixed steam is extracted and conducted along a connection line to a separation station where the water is separated from the steam. The water enters the district heating utility and is used to heat up groundwater for the hot water utility. We produce about 50 % of all the hot water in the capital area, which is otherwise used to heat homes and swimming pools. Think about us the next time you go for a swim or take a shower.

To use our natural resources to the fullest, the steam is also conducted into steam turbines where the generation of electricity takes place. Our electricity is produced in a sustainable manner and its carbon footprint is the lowest in the world.

At our hydropower Station in Andakílsá, hydropower is used to generate electricity.


Three power plants

ON Power owns and runs three power plants that we are very fond of. These are the geothermal steam plants in Hellisheidi and Nesjavellir and the hydropower Station in Andakíl, Borgarfjörður.

Hellisheidi Geothermal Power Plant

The Hellisheidi Geothermal Power Plant is located south of Hengill and produces hot water and electricity. The plant was launched in 2006 and has a capacity of 200 MW in thermal power and 303 MW in electricity. In litre terms, it produces 950 litres per second. Everything beyond the geothermal fluids generally runs into the re-injection system down to the groundwater system in the geothermal reservoir. A hydrogen sulphide abatement unit is located at the plant, which uses the Carbfix process to filter out 75% of the hydrogen sulphide and 30% of the carbon dioxide which is dissolved in the geothermal fluids and conducted into the re-injection system.

Nesjavellir Geothermal Power Plant

The Nesjavellir Geothermal Power Plant, which is located north of Hengill, produces hot water and electricity. It can produce geothermal energy of up to 300 MW which is 1,640 l/sec of hot water and up to 120 MW of electricity. Part of the surplus geothermal water from the plant goes into the injection wells and we are constantly working on enlarging the injection utility. Tests are being conducted on the deep injection of geothermal fluid to prepare the experimental re-injection of carbon dioxide and hydrogen sulphide.

Andakílsá Hydropower Station

The Andakílsá Hydropower Station in Borgarfjördur started operating in 1947. The power plant replaced the motorised electrical generators that had been used both in Akranes and in Borgarnes and nearby rural areas and this therefore greatly improved the environment. The total production capacity of the plant is 8 MW. The management of the plant takes into consideration water levels in the lake of Skorradalsvatn and the flow of the Andakílsá river with a view to best preserving the Skorradalsvatn lake as a nature reserve and Andakílsá as a fishing river.