Iceland’s energy mix is among the most unique in the world, with 85% of its total primary energy sourced from domestic renewables. It is the world’s largest electricity producer per capita, generating nearly 100% of its electricity from renewable sources. Iceland’s electricity is produced almost entirely by two renewable sources: Hydropower (70-75%), and geothermal (25-30%). Geothermal energy covers 95% of the country’s heating needs. It also powers greenhouses for agriculture, fish farming, and snow-melting systems for sidewalks. Iceland aims to become carbon-neutral by 2040 and completely fossil-fuel-free by 2050.

Iceland is leveraging its 100% renewable geothermal and hydropower grid to become a major green hydrogen and e-fuel producer. , aiming for carbon neutrality and fossil fuel independence by 2050. Key projects focus on decarbonizing maritime and heavy transport, including a 300MW plant for Sustainable Aviation Fuel (SAF) at Keflavík Airport.

Hydrogen is produced through electrolysis powered by abundant, low-cost geothermal and hydroelectric energy. The primary goal is creating e-fuels (green ammonia, methanol, methane) to replace imported fossil fuels in hard-to-abate sectors like shipping and aviation.

White hydrogen found in Iceland’s hydrothermal fields.