Letter of Intent on Research and Utilisation in Krýsuvík

Krysuvík is a valuable recreational and tourist area owned by the City of Hafnarfjörður.

The City of Hafnarfjörður and HS-Orka have signed a letter of intent for the research and utilisation of freshwater and geothermal energy in Krýsuvík. The letter of intent was unanimously approved at a meeting of the Hafnarfjörður Town Council on 27 September. The City of Hafnarfjörður owns Krýsuvík, a valuable recreational and tourist area, which also possesses one of the most promising options for the future development of the geothermal heating system for the capital region and the strengthening of its supply security.

^{Tómas Már Sigurðsson, CEO of HS Orka, and Rósa Guðbjartsdóttir, Mayor of Hafnarfjörður, at the signing of a letter of intent.}

„There are great opportunities in continuing cooperation and, in parallel, in strengthening research and utilisation in the region. Of greatest importance are the security of hot water supply to the capital region, the development of infrastructure for outdoor recreation and eco-friendly tourism, and the diverse opportunities for economic development. The memorandum of understanding, which has now been signed, emphasises making the most of the natural features and cultural heritage of Krýsuvík, improving the facilities in the area and enhancing the environment.“says Rósa Guðbjartsdóttir, Mayor of Hafnarfjörður.

^{Krysuvík is a valuable recreational and tourist area owned by the City of Hafnarfjörður.}

It is important to continue cooperation on research and the potential utilisation of resources.

HS Orka hf. operates two power stations on the Reykjanes Peninsula, where the company has over four decades of experience in developing the multi-use of resource streams at the HS Orka Resource Park, which are utilised for green energy solutions, cultivation, aquaculture and the food industry, as well as tourism. In addition, HS Orka supplies fresh water and produces hot water and electricity for the municipal utilities in the South-West. HS Orka hf holds a research licence from the National Energy Authority in Krýsuvík until 31 October 2025 and operates under a cooperation agreement with the City of Hafnarfjörður since 2006. The parties consider it important to continue the collaboration on research and the potential utilisation of natural resources on the land of Krýsuvík, without, however, compromising the natural environment or the area's appeal as a recreational and tourist destination. A specific Utilisation Agreement will be established, granting permission for research and the utilisation of natural resource rights in Krýsuvík. The parties will endeavour to conclude an agreement as soon as possible, as this is a prerequisite for drilling a deep exploration borehole to confirm a viable geothermal resource in Krýsuvík. The drilling is planned for 2023 and is a priority in the research plan. The letter of intent is valid until the end of the exploration period, 31 October 2025, or as agreed between the parties.