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Iceland’s Laxey to build new RAS facility on Vestmannaeyjar Islands

March 19, 2024  By RAStech staff

Landsvirkjun and Laxey ehf. have signed a Power Purchase Agreement for a RAS farm. (Photo: Laxey)

Icelandic national power company, Landsvirkjun has signed a Power Purchase Agreement (PPA) for renewable energy to develop a new land-based aquaculture facility on the Vestmannaeyjar Islands with Atlantic salmon producers, Laxey ehf.

The RAS farm, billed as a high-tech food production facility aims to have a “significantly low carbon footprint”. It will be constructed over the next few years, with full completion expected in 2030. 

Landsvirkjun said electricity delivery will start in April 2026 and will increase as output increases. When operations reach total capacity, power demand is expected to be 22 MW. 

“The development of Laxey’s land-based aquaculture is an exciting project that will increase value creation and export from Vestmannaeyjar and Iceland. The responsible and sustainable utilization of renewable water and energy sources follows Landsvirkjun’s prioritization and policy on energy sales,” said Hörður Arnarson, Landsvirkjun’s chief executive officer. “Furthermore, it is delightful that Laxey will become the first large end user in Vestmannaeyjar, thus supporting plans for improved electricity security on the islands.” 

The aim of maximizing the Power Purchase Agreement (PPA) is to enhance energy generation by Landsvirkjun, as the wind farm Búrfellslundur, will be commissioned in 2026 and Hvammsvirkjun Power Station in 2028. 

Laxey will become Vestmannaeyjar’s first large end user, and the company’s project will support the development of transmission lines to the islands. The project is expected to create over 100 jobs. 

“It is Laxey’s policy that the company’s environmental impact will be kept at a minimum, and production will be held to the highest standards. Therefore, it is vital to utilize green energy. Changing to green energy is essential for land-based aquaculture to minimize the carbon footprint, reduce costs, and maintain consumers’ trust in the sustainability of operations,” said Lárus Ásgeirsson, Laxey’s chairman. 

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