Plans announced for large methanol production at Reykjanes

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Posted On: August 10, 2021

Plans announced for large methanol production at Reykjanes

Our member HS Orka and partner Hydrogen Ventures Limited (H2V) have announced exciting plans to develop a production plant for green methanol using green hydrogen to power the marine sector, as well as domestic and commercial vehicles such as cars, vans and lorries.

HS Orka/H2V’s projects will focus on using geothermal energy to produce green hydrogen, which will then be used in the production of synthetic fuels. All the hydrogen created and used will be certified ‘green hydrogen’ meaning that 100% of the energy used to generate it comes from renewable sources.

This project will comprise two phases, with an initial 30MW input, followed by a second phase of a much larger scale for the production of green hydrogen. The total cost of Phase One is anticipated to be EUR100m.

HS Orka´s CEO Tómas Már Sigurðsson said, ‘We are very excited about this collaboration with H2V which has gathered great deal of knowledge and experience in managing projects of this magnitude. They realize the unique proposition of Iceland and what HS Orka’s Resource Park has to offer, but in addition to electricity, HS Orka will be able to supply them with fresh water and natural carbon dioxide, which is essential for the methanol production‘.

See the release by HS Orka