ENERGY IN ICELAND - Orkustofnun

Fuel production and useImported fuels are a major componentin Iceland´s energy budget. According totrade statistics, coal was first importedearly in the 17th century, but there is nomention of petroleum imports until 1867.Neither of these energy sources was, however,imported to a significant extent untilthe past century. The harnessing of naturalenergy sources and Iceland’s electrificationtook place decades later than in neighbouringcountries, although Iceland was aheadin the utilization of geothermal energy.Peat production ceased during the early1960s and was replaced by coal and oil, importedfor space heating purposes. Since themid-20th century and until methane refiningwas implemented at a city waste yardin 2000, no fuel was produced in Iceland. In2003 a hydrogen fuel station was constructedas a part of an international demonstrationproject. Methane and hydrogen productionare small scale. Methane production inIceland has the potential capacity to powerabout 4,000 small cars, or 20 buses, but sofar refined methane has mostly been usedto produce electricity. Methane used thusfar for fuel has powered approximately 50cars and 2 buses. Meanwhile, the hydrogenfuel station has been used to service andproduce hydrogen for 3 buses.Construction at Karahnjukar power plant.Figure 1. Space heating by source1970–2005.Helga BarðadóttirRecent developmentsin productionElectricity production has been mostly constant from 2000 to 2005, although it isincreasing slightly. Currently, the country’s largest hydropower plant is being constructedand two more geothermal power plants will soon be added. Together withthe expansion of an existing geothermal power plant (in 2005), the electricity productionin Iceland is expected to increase by 70% from 2005 to 2007.13