Ölfus faces opposition as National Planning Agency rejects land reclamation project near Þorlákshöfn

The Ölfus municipality faces significant opposition as the National Planning Agency has rejected its proposals for a controversial land reclamation project off the coast of Þorlákshöfn. This project has been a contentious topic, particularly with the Icelandic Surfing Association voicing concerns that the reclamation would destroy local waves.

The National Planning Agency’s refusal to approve modifications to Ölfus’s master plan means that work on the land reclamation cannot commence until the municipality engages further with the agency. The agency’s response, dated August 19, indicates that not enough alternatives were considered during project preparation. It noted the environmental report contained only the proposed modification and a “null option,” addressing its intended utility for the South Harbor pier.

The agency insists that Ölfus justify its choice of location for the reclamation and respond clearly to suggestions about alternative implementations raised in feedback, including from the Road and Coastal Administration. It also challenges Ölfus’s claim that the project does not require an environmental impact assessment, arguing instead that the agency should be notified to determine whether such an assessment is needed.

In response to the decision, Ölfus mayor, Elliði Vignisson, stated the municipality will continue to collaborate with the National Planning Agency and hold meetings to ensure appropriate procedures are followed. He downplayed the rejection, emphasizing it as a routine aspect of large development projects and reaffirming his commitment to work closely with the agency to move forward.