HS Orka 50th Anniversary

HS Orka is one of the key members of the cluster organization and has been from the beginning of the operation of the cluster organization. This successful company has been a leading player and a role when it comes to harnessing the geothermal resources in Iceland and been a role model in the world on how to maximize the utilization of the geothermal resources.

End of this year it will be 50 years since the establishment of Hitaveita Suðurnesja, the predecessor of HS Orka. Half a century ago, the municipalities in Suðurnes joined forces with the Icelandic state, and on December 31, 1974, Hitaveita Suðurnesja was established by law from the Althingi.

HS Orka has opened an exhibition at Duus Museum to mark this occasion. The anniversary exhibition is the first of several events that HS Orka plans to host to celebrate this milestone in the company’s history, with more details to be announced later.

At the same time, we congratulate HS ORKA on their 50th anniversary and continued success in the year to come, we encourage you to visit HS Orka’s anniversary exhibition to learn about the advancements they have contributed to the community.

Following you can see an overview of HS Orka history as listed on their home page:

A Brief History of HS Orka

·       Early Geothermal Utilization: Icelanders have a long history of utilizing geothermal energy. In the 1950s and 60s, people noticed snow melting in specific areas near Svartsengi on the Reykjanes Peninsula. This led to the formation of committees in Keflavík and Njarðvík to explore geothermal heating possibilities. By 1969, the Grindavík municipal council decided to investigate the Svartsengi area for geothermal heating.

·       Formation of Hitaveita Suðurnesja: On December 31, 1974, Hitaveita Suðurnesja was established by law, with the Icelandic state providing research boreholes and geothermal studies, while local municipalities contributed funding and manpower. The first fresh groundwater well was drilled in 1975, and a heat exchange station was built in Svartsengi.

·       Successful Prototype: In 1976, a temporary station was set up to heat fresh groundwater using geothermal water and steam. This prototype was successful, providing heated water of acceptable quality. The first geothermal plant phase in Svartsengi included steam turbines for electricity and heat exchangers for hot water production.

·       Electricity Production Begins: Due to water shortages affecting Landsvirkjun’s electricity production in the late 1970s, Hitaveita Suðurnesja began producing electricity directly into the national grid. By the 1980s, additional Ormat machines were installed to improve resource utilization.

·       Expansion and Challenges: In 1982, Hitaveita Suðurnesja acquired RARIK’s assets on the Reykjanes Peninsula, improving electricity supply reliability. The company also established the Resource Park, with the Blue Lagoon being one of the first companies to utilize different resource streams from geothermal production.

·       Reykjanes Power Plant: In 2000, Hitaveita Suðurnesja became a corporation. By 2006, the Reykjanes Power Plant was operational, featuring innovative technology for electricity production.

·       Transition to HS Orka: In 2008, Hitaveita Suðurnesja was restructured into HS Orka and HS Veitur, following changes in electricity laws. HS Orka focused on electricity production and sales, while HS Veitur handled the distribution and sales of hot and cold water.

·       New Hydropower Projects: HS Orka expanded into hydropower, becoming a shareholder in VesturVerk in 2014 and starting construction on the Brúarvirkjun hydropower plant, which began operations in 2021. The company also acquired Fjarðarárvirkjanir in 2023.

·       Reykjanes Power Plant Expansion: In 2022, a 30 MW expansion of the Reykjanes Power Plant was completed, utilizing innovative methods to maximize resource use with minimal environmental impact.

·       Challenges with Nature: Since March 2021, volcanic eruptions on the Reykjanes Peninsula have posed challenges. HS Orka developed response plans to manage potential impacts on geothermal plants, with significant events occurring near Grindavík and Svartsengi in November 2023.

For further information about HS Orka please visit their homepage. www.hsorka.is