MýSköpun advances plans for astaxanthin plant near Þeistareykir

Biotechnology company MýSköpun and Landsvirkjun have signed a letter of intent on electricity and heat supplies for a planned natural astaxanthin production facility near the Þeistareykir geothermal power plant, mbl.is reports.

The agreement marks a step forward in preparations, with formal contract negotiations now set to begin. MýSköpun will also continue work on technical design, planning, permits and preparations for construction.

The company plans to build a specialised, 10,000-square-metre facility using advanced cultivation technology to produce natural astaxanthin from the microalga Haematococcus pluvialis. The antioxidant is used in dietary supplements and cosmetics.

The companies first announced their collaboration in June 2025, when they agreed to explore the possibility of locating microalgae production near Landsvirkjun power plants. The Þeistareykir location offers access to renewable electricity and heat from the geothermal plant, as well as natural cooling conditions, the report said.

The project would be developed in stages and could eventually create up to 40 permanent specialist jobs. Most of the production is intended for export. Construction on the first phase is scheduled to begin next year.