Dutch Bank May Fund Iceland Tomato Project Skip to content

Dutch Bank May Fund Iceland Tomato Project

Geogreenhouse, which is planning to build a greenhouse next to the Hellisheiðarvirkjun power plant outside Reykjavík to produce tomatoes for export to the UK, is currently in discussions with a Dutch bank on participating in the investment.


A greenhouse in Iceland. Archive photo by Páll Stefánsson.

The Dutch bank in question has participated in funding the construction of greenhouses all around the world, Morgunblaðið reports.

The first construction phase of a five hectare greenhouse is estimated to cost ISK 2.4 billion (USD 20 million, EUR 15 million).

It would deliver 3,000-4,000 tons of tomatoes annually, which is about three times the current production of all Icelandic tomato farmers.

Geogreenhouse has made an agreement with a foreign party on the sale of the products.

Sigurður Kiernan and Sveinn Aðalsteinsson, the executives of Geogreenhouse, say it is very viable to produce tomatoes in Iceland for export to the UK.

The production is based on electric lighting which ensures high and stable quality of the product. The water in Iceland is first class whereas drinking water is not used to produce tomatoes abroad, they say.

There is plenty of geothermal heat to maintain a stable temperature in the greenhouse. Carbon dioxide from a borehole will be used for the production while abroad it is made with the combustion of fossil fuels for such purposes.

Sigurður and Sveinn state that 90 percent of tomatoes sold in the UK are imported and they are often transported longer distances than from Iceland. Greenhouses in Iceland certainly have to be sturdier than abroad but it is not a significant part of the overall cost.

Click here to read more about Geogreenhouse.


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