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Helguvik-Bergvik Framework Plan

Suðurnes, Iceland

º£½ÇÊÓƵ supported the development of the Helguvik-Bergvik Framework Plan with a groundbreaking eco-industrial park, where circular economy principles meet sustainable energy solutions.

The Suðurnes peninsula, in south-west Iceland, the site of and home to the Reykjanes UNESCO Global Geopark, is being transformed into one of the leading developments for sustainable innovation in the aviation, energy and technology sectors. Helguvík is a strategically located industrial area next to a deep-sea port, the town of Reykjanesbær and Keflavik Airport.

The area benefits from excellent road connectivity and is situated just a short distance from the main route linking Keflavik Airport to Reykjavik. It already hosts a range of commercial activities and serves as the country’s primary import hub for aviation fuel.

The eco-industrial park will promote resource efficiency and cleaner production and industrial symbiosis.

The eco-industrial park will facilitate circular economy systems by utilising by products and waste from one sector to be used in another closely located sector.

Producing hydrogen to decarbonise the airport requires strengthening the electric grid and a commitment from Iceland to expand its renewable energy capacities.

We developed a solution centred on waste-to-energy technologies, which would meet power requirements and provide heating capacities for the eco-industrial park.

Challenge

Following our earlier work on the Keflavík Airport Area Masterplan (K64), which proposed an incremental strategy to steer the sustainable long-term transformation of the Suðurnes peninsula, our energy consulting and economics teams were further engaged by KCAP to work closely with the client Kadeco (Keflavík Airport Development Company) on developing a focused masterplan for an eco-industrial park.

The Helguvík-Bergvík Framework Plan serves as a key focus area within the broader regional masterplan, guiding the phased development of this ambitious vision. The plan needed to embody a progressive approach to industrial development in the region, emphasising the integration of environmental, social, and economic elements into a unified, comprehensive strategy.

The primary objective is to transform Helguvík-Bergvík into a manufacturing and green energy hub that bolsters the economy while remaining environmentally considerate. Poised to become Iceland’s premier eco-industrial area, it is set to generate many new jobs and enhance the region’s global competitiveness.

The long-term vision includes the potential addition of hydrogen production, enabling the development of synthetic kerosene to support zero-carbon aviation from the airport. However, this depends on Iceland’s future power production capacity. The immediate focus is on establishing the eco-industrial park as a hub for innovative technology businesses, laying the groundwork for future energy solutions.

Detailed economic modelling was required to ensure the vision for the eco-industrial park was viable, while our energy consulting experts were tasked with assessing a range of challenges relating to energy provision for the site. The area is currently served by hydroelectricity from the national grid and two geothermal power plants, but these are reaching capacity.

New energy solutions would be required. An aluminium smelter previously built on the site never went into operation because of the lack of available energy supplies. Another key challenge is around resilience, with one of the area’s geothermal power plant located close to an active volcano. The risks posed to the electrical supply of the region would need to be carefully assessed.

Solution

The 350-hectare site will be divided into six clustered areas, each focusing on different sectors such as clean energy, innovation, circular economy, clean building, port logistics, food and bioeconomy. This division allows for tailored strategies for each area, ensuring a holistic and well-organised approach to land use and industrial activities. It’s a blueprint for turning the Suðurnes region into a model of eco-industrial success, by balancing efficiency, environmental care and social responsibility.

The circularity strategy for the site aims to promote efficient resource use, minimise waste, and create synergies between industries, to improve overall sustainability.

Our economics team developed an assessment of which economic sectors should be attracted to the eco-industrial park. Our energy team looked closely at the opportunities around innovative decarbonised energy solutions. An extreme amount of electricity would be required for the production of hydrogen at the scale necessary to decarbonise the international airport.

The northern section of the masterplan is reserved for future production of synthetic aviation fuel using hydrogen at the point when this is technologically and economically practicable. The port can be used for the importation of CO2, which would also be required for the process of generating synthetic aviation fuel.

In the shorter term, development of the remaining areas of the eco-industrial park will focus on fostering a circular economy. This will include research laboratories, construction centres and logistics hubs, all of which will also need additional electrical power supply. Our experts liaised with the team from the region’s geothermal power plant to better understand its capacity and build an impression of the additional energy sources that would be required.

We identified that a diversification of energy sources would also support the resiliency of the region’s infrastructure, given the presence of a major active volcano close to the existing geothermal power plant.

Our team developed a conceptual solution based around waste to energy technologies. This would have the secondary benefit of supporting the municipality of Reykjavik, which already struggles to deal with its waste.

Value

The masterplan builds on the strategic location of the area between the port and Keflavik International Airport, to envision its transformation into an eco-industrial park with potential to spearhead energy transition within the Keflavik Airport area.

Our team developed a comprehensive picture of the economic vision for the site and the energy solutions that would be required to make it work.

The Helguvík-Bergvík Framework Plan is a bold leap toward a sustainable and resilient industrial ecosystem in Iceland. Rolling out over a 25-year timeline, the plan allows for gradual growth and adaptability as markets and technologies evolve. Flexibility is key, ensuring the site can welcome new industries or innovations down the line.