Icelandic Energy Cluster

Icelandic Energy Cluster
Name	Icelandic Energy Cluster
Formation	2010s
Type	Non-profit organization
Headquarters	Reykjavík, Iceland
Region served	Iceland, North Atlantic
Leader title	Director

Icelandic Energy Cluster

The Icelandic Energy Cluster is a Reykjavík-based non-profit association linking Icelandic companies, research institutes, universities, and public agencies active in renewable energy sectors such as geothermal energy, hydropower, and related technologies. It serves as a coordination hub among participants from the Icelandic National Power Company (Landsvirkjun), Orkuveita Reykjavíkur, University of Iceland, and research centers including Magma Energy. The Cluster aims to promote innovation, export, and regional development by fostering partnerships with actors like Icelandair, Iceland Chamber of Commerce, and international organizations such as the International Energy Agency.

Overview and History

The Cluster emerged in the 2010s as part of Icelandic strategies to leverage resources managed by entities like Landsvirkjun and Orkuveita Reykjavíkur and to commercialize technologies from academic units including the University of Iceland and Reykjavík University. Its formation involved stakeholders such as Icelandic New Energy, National Energy Authority (Orkustofnun), and industrial firms like Marel and Íslenska Gámafélagið. Early initiatives connected it with projects tied to the Silicon Valley model, collaborations with the European Union through frameworks like Horizon 2020, and exchanges with the World Bank on geothermal financing. Historical milestones include partnerships with the Blue Lagoon operators and pilot programs developed alongside the Icelandic Centre for Research (RANNÍS).

Organization and Membership

Membership spans a spectrum of entities: utilities such as Hitaveita Selfoss, service providers like Ísor, engineering firms including Mannvit, research institutions like Iceland GeoSurvey (ÍSOR), and academic departments at the University of Akureyri and the Agricultural University of Iceland. The Cluster governance typically involves board representation from firms like Alcoa (historically linked to Icelandic smelting), exporters such as Icelandair Cargo, and public agencies including Ministry for Industry and Innovation (Iceland). It maintains working groups that mirror sectors represented by partners such as Siemens, Schlumberger, and ABB in international cooperation. Membership categories often match those used by regional clusters like Arctic Cluster initiatives and align with standards from bodies like the Icelandic Export Council.

Core Activities and Projects

The Cluster runs programs in technology transfer, export promotion, and workforce training with collaborators like Icelandic Technical School (Tækniskólinn), Maritime Institute of Iceland, and the Icelandic Fisheries Laboratories. Notable projects include geothermal demonstration plants modeled after installations in Krafla, deep drilling campaigns inspired by Well INE pilots, and grid-integration studies referencing the Nordic electricity market and interconnection concepts like the proposed Icelink HVDC link. It engages in project consortia with multinationals such as Orsted and Vattenfall on offshore and onshore resource development, and supports startups spun out of Reykjavík University and Innovation Center Iceland accelerators. The Cluster also organizes events comparable to Iceland Airwaves in scale—trade missions, conferences, and industry fairs linked to Arctic Circle gatherings.

Economic Impact and Regional Development

Through linkage with major industrial consumers such as Alcoa, Rio Tinto (through historical plans), and fisheries aggregators like HB Grandi, the Cluster influences regional employment in areas like Vík and Akureyri. It supports value chains encompassing turbine manufacturing (partners akin to GE Renewable Energy), heat utilization for industries including Icelandic Glacial and tourism enterprises such as Blue Lagoon, and the export of expertise to markets like Kenya and Indonesia. Investment facilitation often involves finance actors like the Icelandic Investment Bank and international financiers such as the European Investment Bank. Regional development programs highlight coordination with municipal actors like Reykjavíkurborg and regional development agencies similar to North Iceland Regional Council.

Technology and Innovation

The Cluster incubates innovations in areas linked to entities such as Iceland GeoSurvey (ÍSOR), Magma Energy, and research groups at the Norwegian Geotechnical Institute through joint research on enhanced geothermal systems, low-enthalpy district heating, and turbine efficiency. It collaborates with technology providers like Schlumberger, Halliburton, Siemens Gamesa, and universities including Massachusetts Institute of Technology and Imperial College London through exchange programs. Innovation outputs include IP that can be licensed by firms like Marel and spun into startups participating in programs run by Startup Reykjavík and INCUBATOR Reykjavik. The Cluster leverages standards and testing bodies such as ISO committees and partners with labs like SINTEF.

Environmental and Regulatory Issues

Environmental engagement intersects with regulators and NGOs including Icelandic Nature Conservation Association (FÍ), United Nations Environment Programme, and authorities such as Icelandic Environmental Agency. The Cluster addresses impacts of projects similar to those at Hengill and Krafla by working on mitigation, biodiversity offsets, and monitoring strategies using frameworks from the Convention on Biological Diversity and environmental assessments modeled after those by the European Environment Agency. Regulatory liaison occurs with the National Energy Authority (Orkustofnun), the Ministry for the Environment and Natural Resources (Iceland), and legal expertise from firms like Landsnet advisers to ensure compliance with Icelandic laws and EU-related directives.

International Collaboration and Partnerships

International partnerships include cooperation with the International Renewable Energy Agency (IRENA), World Geothermal Congress participants, and bilateral programs with nations such as Japan, Kenya, and Philippines where geothermal expertise is in demand. The Cluster coordinates export missions with trade bodies like the Icelandic Trade Council, engages in EU research consortia under Horizon Europe, and liaises with multilateral lenders including the World Bank and the Asian Development Bank on project finance. It also exchanges best practice with other clusters such as the Orkney Renewable Energy Forum and engages in knowledge transfer with institutions like ETH Zurich and Delft University of Technology.

Category:Energy in Iceland