New borehole in Blönduóss and Skagaströnd shows potential for increased geothermal capacity

A new borehole at the geothermal district heating facility of Blönduóss and Skagaströnd shows promising potential for the local communities. The new production well is expected to significantly increase the plant’s capacity and help alleviate the shortage of hot water in these areas.

The geothermal resource supplying the municipalities of Húnabyggð and Skagaströnd is located at Reykir in Húnavellir. Its capacity has been nearly fully utilized, making hot water delivery to larger users limited in recent years. The new borehole, which reaches a depth of 1,600 meters and was completed last winter, was drilled following exploratory efforts last summer. “This well is located slightly south of the other wells we are utilizing, and things are looking good,” said the operations manager of the district heating facility, suggesting strong optimism, although he noted it is too early to determine its exact output once operational.

Currently, the heating plant operates at a capacity of 27 to 28 liters per second, with hopes that the new well could nearly double that output. Preliminary indications suggest that the new water source may be approximately three degrees Celsius hotter than the existing production wells. However, there remains considerable uncertainty regarding its actual output, primarily due to potential reductions in yield from other wells in the vicinity.

The project is estimated to cost around 400 million Icelandic krónur, aimed at addressing the heating supply issues the district has faced in recent years, ensuring that both residents and businesses have sufficient access to hot water.