Fuel Company Invests in Rapeseed Oil Production Skip to content

Fuel Company Invests in Rapeseed Oil Production

Icelandic fuel company N1 has invested tens of ISK millions in the experimental cultivation of rapeseed. The project has been ongoing for three years. All of the company’s calculations indicate that rapeseed cultivation for the production of biodiesel is profitable.

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From Thorvaldseyri, one of the farms in south Iceland where rapeseed is cultivated. Photo by Páll Stefánsson.

CEO of N1 Hermann Gudmundsson told Fréttabladid that studies indicate rapeseed cultivation is feasible all around the country but the Eyjafjördur region in the north and south Iceland showed the best results.

It is believed possible to grow 15,000-20,000 tons of rapeseed in Iceland annually and farmers in Austur-Skaftafellssýsla in southeast Iceland are planning to launch cultivation experiments all over the county.

The county’s rapeseed cultivation association has received funding from Hornafjördur municipality worth ISK 2.5 million (USD 22,000 EUR 15,000) for the project.

Gudmundsson said he will monitor the farmers’ progress closely and believes they will cooperate in the future. There are also plans to accommodate a biodiesel factory in the facilities of N1 in Hvolsvöllur. The final decisions on the project will be made next summer.

The overall cost of the project is estimated to be between ISK 300 and 500 million (USD 2.6-4.3 million, EUR 1.9-3.1 million).

On Monday, farmer Ólafur Eggertsson at Thorvaldseyri in south Iceland, a pioneer in rapeseed cultivation, handed over 500 liters of oil which he pressed from rapeseed last autumn for experimental fuel production at the biodiesel company Lífdísill.

He considers the event a milestone. “I handed over the first oil which is produced from rapeseed here in Iceland in any significant quantity. This is the first time that a farmer has transported oil from the countryside to the town to have it changed into fuel for diesel engines.”

Click here to read more about rapeseed cultivation in Iceland.

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