The Ministry for the Environment, Energy and Climate, Reykjavík Energy, Landsvirkjun, and HS Orka today signed a cooperation agreement on the preparation and implementation of the third deep drilling well in the Iceland Deep Drilling Project (IDDP), which will be drilled at Nesjavellir later this year.
The signing took place at Reykjavík Energy’s headquarters in Bæjarháls. The aim of the partnership is to accelerate the development of next-generation geothermal systems as part of Iceland’s long-term energy strategy.
Looking Further Ahead and Breaking New Ground
Jóhann Páll Jóhannsson, Minister for the Environment, Energy and Climate, signed the agreement on behalf of the government. He noted that geothermal energy plays a more significant role in Iceland than anywhere else in the world:
“The government of Prime Minister Kristrún Frostadóttir is firmly committed to further strengthening Iceland’s competitiveness in this field, while also looking further ahead and breaking new ground. We are now setting our sights deep into the Earth’s crust to harness superhot geothermal systems in wells that could deliver many times greater production capacity than previously known. This presents tremendous opportunities for our energy system, value creation, and the export of Icelandic expertise, as well as for the global energy transition and progress in climate action.”
IDDP-2 at Reykjanes an Important Foundation
Lilja Magnúsdóttir, Executive Director of Resources at HS Orka, signed the agreement on behalf of the company, which emphasizes continued research into superhot geothermal systems through its participation in the strong collaboration behind IDDP-3.
“The project builds on the successful results of IDDP-2, which was drilled in HS Orka’s geothermal field at Reykjanes, where supercritical conditions in a geothermal system were confirmed for the first time. That milestone marked a turning point and created valuable knowledge and experience here in Iceland, which is now being systematically applied in IDDP-3 to further develop the technology. Continued research and development of superhot geothermal energy creates opportunities to increase both output and value creation from the geothermal systems of the future.”
Reykjavík Energy Leads the Project
Reykjavík Energy is leading the deep drilling project this time around. Although the project is certainly challenging, it is also one of the greatest opportunities for the future of geothermal energy, according to Hera Grímsdóttir, Managing Director of Research and Innovation at Reykjavík Energy.
“IDDP-3 is a key step in Reykjavík Energy’s deep utilization journey and part of a broader vision to open a new chapter in geothermal utilization. The project is not just about a single well, but about developing the technology and expertise needed to harness superhot geothermal energy in the coming years. Through strong cooperation with government authorities and other energy companies, we can accelerate this journey and strengthen Iceland’s position as a leading force in sustainable energy solutions worldwide.”
One of the World’s Most Ambitious Geothermal Projects
Since 2000, Iceland’s largest energy companies, with the support of the government and international partners, have been working on developing technology aimed at utilizing geothermal energy at higher temperatures than has previously been generally possible.
The two previous experimental IDDP wells have delivered important knowledge and brought Iceland’s geothermal sector closer to harnessing superhot geothermal energy, where temperatures exceed 350–400°C.
The next step is to drill the third well, IDDP-3, at Nesjavellir in close cooperation with the municipality of Grímsnes and Grafningur. The goal is to test new technical solutions and explore how superhot steam can be utilized safely and cost-effectively in the future.
“Despite active competition in the Icelandic electricity market, the geothermal sector has stood together on numerous research and development projects to support progress and strengthen the sector’s overall competitive advantage,” says Bjarni Pálsson, Executive Director of Wind and Geothermal at Landsvirkjun.
“The Iceland Deep Drilling Project, which has been ongoing for about a quarter of a century, is one of the best examples of such cooperation. The first well in the research collaboration, IDDP-1, drilled by Landsvirkjun at Krafla in 2009, is still the hottest geothermal well ever drilled in the world. Iceland’s national power company will continue to contribute to this important collaboration.”
The new cooperation framework emphasizes that IDDP-3 will serve as a shared platform for research, testing, and knowledge creation.
Recently, the IDDP-3 project received a grant of ISK 310 million from Iceland’s Climate and Energy Fund.
