A new workshop and warehouse building rises at Hellisheiði

ON Power has begun preparations for a major expansion at Hellisheiði, where a new workshop and warehouse building will be constructed to strengthen the company's operations for the future. 

The project involves a steel-frame building of approximately 2,000 square meters on a concrete foundation, along with a new paved work area and parking spaces. The groundbreaking ceremony took place on May 18th by Kristín Birna, Maintenance and Workshop Manager at ON, and according to plans, operations will be fully relocated to the new premises in the autumn of 2027. 

The project is now in full swing, with tenders completed for earthworks, foundations, and the erection of the building. Civil engineering contractor D. Ing will handle site preparation, while Eykt will manage both the concrete foundations and the construction of the steel-frame building. In parallel, the final design of the steel structure and technical systems is underway, with the first steel beam scheduled for erection by late September. 

According to Kristín Birna, the development of a new workshop and improved staff facilities is a vital part of the project. “With the new premises, we can create a safer and more efficient working environment, in addition to significantly improving staff facilities. The new workshop will also facilitate a better flow through current operations, which increases cost-efficiency, simplifies work processes, and supports better service and performance,” she says. 

Alongside this, the warehouse operations on site will be consolidated into a single building. Today, the warehouse is scattered across about nine different locations, making stock management and material access both time-consuming and inefficient. A new, centralized solution will create better organization and an overview of inventory. 

According to Kría Súsanna Dietersdóttir, Warehouse and Inventory Manager at ON, the main benefit lies in increased efficiency in daily operations. “Consolidating the warehouse will make it easier to locate materials, improve our overview, and reduce the time spent searching and moving stock between locations,” she says. She adds that the change will also lead to better inventory utilization and reduce the risk of duplicate purchases. 

The new warehouse will house a wide range of equipment that supports the operation of the power plant, including spare parts, operating materials, tools, and safety equipment. Better access to this equipment will support faster response times, maintenance, and enhanced operational reliability. 

Construction at Hellisheiði involves unique challenges. Approximately 35,000 cubic meters of material must be excavated and replaced under the foundation, as bedrock lies up to 11 meters deep. Additionally, the challenging weather conditions in the area must be taken into account, where, among other things, an increased frequency of lightning storms affects the work. 

The project is led by a strong team of women from ON, with Guðrún West Karlsdóttir serving as Project Manager, Birna Björnsdóttir, Director of Power Production, as Project Owner, alongside department managers Kría and Kristín. 

The new workshop and warehouse building marks an important step forward for ON Power and will improve facilities, strengthen operational safety, and support the continued development of operations at Hellisheiði. It will be exciting to watch the building take shape in the coming months. 

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