ON Power and Thor Landeldi agree on increased electricity for land-based fish farming in Ölfus

Orka náttúrunnar (ON Power) and Thor landeldi have signed an electricity contract supporting the ongoing development of the company's land-based fish farm in Ölfus. The agreement entails an increase in contracted electricity from 5 MW to 10 MW, as well as a letter of intent for additional electricity in the future.

Thor landeldi is working on developing a land-based salmon farm west of Þorlákshöfn. Access to freshwater, seawater from boreholes, and electricity creates favorable conditions for land-based aquaculture and sustainable food production. The company already operates a hatchery, and the aim is for the first phase of grow-out facilities, with an annual production capacity of 5,000 tonnes, to be commissioned this winter.

Thor landeldi holds a license for an annual production of 20,000 tonnes and is working on expanding its production permits up to 40,000 tonnes per year in phases.

“We are building a new export industry based on Icelandic resources, and the partnership with ON is an important part of that development. With the increase in the electricity contract from 5 to 10 MW, along with a letter of intent for further electricity, we can continue our phased development at full speed in accordance with the company's permits,” says Steinþór Pálsson, CEO of Thor landeldi.

Electricity is one of the fundamental prerequisites for land-based aquaculture, and secure access to it is crucial for the development of the sector. Through the agreement, ON supports commercial operations that create jobs, increase export revenues, and bolster the local economy.

“Access to reliable electricity is a key prerequisite for growth in land-based aquaculture, and it is a pleasure to support the continued growth of Thor landeldi and commercial activities in Ölfus with this contract. The project aligns well with ON's focus on creating value from electricity by supporting business development, exports, and food production here in Iceland. We look forward to continued cooperation with Thor in the coming years,” says Árni Hrannar Haraldsson, Managing Director of Orka náttúrunnar.

Orka náttúrunnar is the country's largest geothermal energy company, producing electricity and hot water. The company operates the Hellisheiði, Nesjavellir, and Andakílsá power plants, with a combined installed capacity of 431 MW. The company thus provides an important foundation for the development of a diverse business sector across the country.

The cooperation between ON and Thor landeldi began in 2023. With the new agreement, the companies strengthen the foundation for continued development and value creation in the area.

From left: Þorlákur Ómar Guðjónsson, CFO of Thor landeldi; Steinþór Pálsson, CEO of Thor landeldi; Árni Hrannar Haraldsson,  Managing Director of ON; Margrét Lilja Hrafnkelsdóttir, Business Development Manager at ON; and Hjálmar Helgi Rögnvaldsson, Head of Business Development and Energy Distribution at ON.