Cheap and Green Energy to be Sold by Ring Road Skip to content

Cheap and Green Energy to be Sold by Ring Road

Iceland’s Ministry of Industry, in cooperation with local authorities, is preparing to establish fuel stations on different places by the Ring Road, which circles Iceland, selling a variety of inexpensive and eco-friendly energy for cars.

“We have begun discussions with municipalities in different parts of the country and oil companies on establishing such fuel stations,” Minister of Industry Össur Skarphédinsson told Fréttabladid. “Drivers who prefer using locally-produced renewable energy sources could purchase energy like methane gas, hydrogen, electricity, methanol and biofuel.”

These municipalities include Akureyri, northeast Iceland, Fjardarbyggd, east Iceland, Höfn in Hornafjördur, southeast Iceland, and Reykjanesbaer and Hafnarfjördur in southwest Iceland.

The work is progressing quickest in Hafnarfjördur; a methane gas station on behalf of N1 is scheduled to open within town limits in August. The local authorities are planning to only use methane-fueled vehicles by the end of 2009.

Gudmundur Ragnar Árnason, purchasing manager for Hafnarfjördur, said methane is half the cost of gasoline and is also much more environmentally friendly. “It is one of Iceland’s best kept secrets.”

The plan is that oil companies operate the new eco-friendly fuel stations and that the state and the local authorities provide them with business by only using official vehicles that run on renewable energy.

The new fuel stations are part of the Ministry of Industry’s plan to make Iceland less dependent on fossil fuels.

“We have been preparing Iceland for the energy exchange. It is not a question of whether but when oil needs to be replaced with renewable energy sources. But that is not possible unless there are ways to distribute such energy,” Skarphédinsson said.

The minister believes Iceland has a head start in this matter. “Icelanders are leading in hydrogen technology since Iceland has been an experimental country on the use of hydrogen cars. Use of methane gas is also in good progress and we have an abundance of green electricity which is cheap compared to electricity abroad.”

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