June 2024 marked a major milestone for Reykjavík Geothermal in the development of the 100 MWe / 133 MWth Bolaalda project, as the project was prioritized for utilization under Iceland’s Master Plan for Nature Protection and Energy Utilization (the “Energy Master Plan” or “Rammaáætlun”).
The Energy Master Plan is a strategic framework that serves as a guide for future energy projects by classifying potential energy sites into three categories: Utilization, On hold or Protection. Being classified in the Utilization category signifies that the project is prioritized for development, and is the most important milestone in successful development of power projects in Iceland. This enables government authorities to issue the necessary permits and licenses to allow for the development and construction of power plants deemed appropriate for energy generation without compromising the environment.
The Energy Master Plan’s steering committee’s review of the Bolaalda project was highly favorable. Among the candidate projects assessed in this round of the Master Plan, Bolaalda was ranked with the highest potential social and economic benefits, while having the lowest environmental impact. The committee’s recommendation requires parliamentary approval before the updated Master Plan becomes legally effective.
Reykjavík Geothermal is the owner and developer of the Bolaalda project. The project seeks to harness the region’s high-temperature geothermal resources, with plans to build a geothermal power plant boasting an electric generation capacity of up to 100 MWe and a thermal capacity of 133 MWth.
Reykjavík Geothermal estimates the total investment in the Bolaalda project to be up to $450 million (~60 billion ISK). Reykjavík Geothermal has been actively progressing the project since acquiring the reconnaissance license in 2018, with ongoing geoscientific, environmental assessment, planning and zoning work in close collaboration with the local authority of Ölfus municipality and the national authorities.
