New Energy Company to Be Founded in Sudurnes Skip to content

New Energy Company to Be Founded in Sudurnes

By Iceland Review

A new energy company, which will be owned by three municipalities in the Sudurnes region on the Reykjanes peninsula, southwest Iceland, is currently underway, and its establishment will probably be announced later today.

According to Morgunbladid, the three municipalities, Grindavík, Hafnarfjördur and Vogar, have decided to cooperate to secure their rights to geothermal energy in the region.

The new company’s preliminary name is Sudurlindir and it will have rights to the majority of geothermal energy resources in Sudurnes, meaning the resources will be entirely in public ownership.

Authorities in Grindavík have criticized the government for leaving the municipality out when enacting countermeasures to respond to the drastic cut in the cod quota. The municipality relies heavily on fishing.

On Saturday Mayor of Grindavík Ólafur Ö. Ólafsson said during a meeting held by the Association of Local Authorities in Iceland in Sudurnes that the municipality is preparing its own countermeasures by attracting companies requiring lots and energy, adding that aluminum companies were not welcome.

The new energy company has the potential of strengthening the position of Grindavík and the other two municipalities considerably, as companies wishing to have operations in the Sudurnes region will have to reach an agreement with them first.

Click here to read more about the consequences of the cut in the cod fishing quota.

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