Future Perfect

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nergy

access

efficiency

and

sustainability

modified petrol cars and gathering animal and vegetable fat from

restaurants and the food-processing industry which is converted

into oil for diesel engines. The latter has been tested on cars, city

buses and a fishing trawler, with encouraging results. Small-scale

experiments that involve growing biofuel plants such as rapeseed

have shown promising economic outcomes in Iceland, although it is

clear production will vary considerably from year to year as a result

of naturally occurring climate variations.

Although DME may be used in diesel engines when fuel tanks are

modified to withstand higher pressure, a feasibility study carried out

on behalf of a major 300 MW plant in western Iceland that produces

DME – from hydrogen and CO

from a ferrosilicon plant – showed

that the production cost is prohibitively high when compared to

fossil oil, despite the considerable environmental benefits.

Iceland has also participated in several larger projects relating to

the introduction of the hydrogen cycle into the transport energy

sector. Cars and buses have run on hydrogen, as have electrical

generators for ships, and a hydrogen filling station is now operating

in Reykjavik. However, advances in fuel cell technology, although

effective, have not delivered the cost reductions that were antici-

pated at the start of the century.

National master plan

The Iceland Government has announced a holistic energy policy

which focuses on the transition from imported fuels to renewable

energy, capitalizing on both hydropower and geothermal resources

to protect the unique features of Icelandic natural and cultural

heritage. Stronger focus will be placed on the diversity, sustain-

ability and high technology content of these new energy-intensive

industries. New power plants will be scheduled under the contin-

uing master plan programme, which is expected to go through

parliamentary process during the first half of 2012. These planned

enterprises have been evaluated and ranked according to their

power and economic potential, socioeconomic effects, impact on

natural and historic sites and any conflicting interests. In addition,

the master plan will define any limitations to existing hydropower

and geothermal plants. The Bill containing the legal framework for

the master plan was passed through parliament in 2011, with the

associated Act stating that a new, revised listing, including classify-

ing power plant options, should be presented to parliament within

four years of the previous version.

The international perspective

Geothermal resources are found mostly along the margin between the

Littorian borders of the crust. In earlier assessments, the total poten-

tial for electricity generation from geothermal sources around the

globe amounted to more than 160 GW, with recent studies showing

even higher values. Investment in the exploitation of this amount

of power could mean an investment of more than US$600 billion.

Such ventures depend on human resources unavailable today, so it is

enormously important to expand capacity by educating and training

a new generation of experts and skilled workers. The United Nations

University Geothermal Training Programme has run in Iceland for

more than 30 years, teaching and now training from 20-30 students

every year in exploration and utilization. Although the programme

is offered only to developing countries, similar initiatives are avail-

able for students from developed countries at universities in Iceland.

Nations such as Kenya are now building significant capacity in

geothermal power and financing extra students in a scheme to meet

the country’s urgent need for more skilled staff in the

area of geothermal power generation.

A considerable portion of Icelandic aid is chan-

nelled into helping developing countries exploit their

geothermal sources. As Icelandic geothermal power

capacity has expanded considerably over recent years,

the nation’s experts have received up-to-date training

and are now active in most countries where geother-

mal energy is on the agenda. But a significant drawback

is that some of the available geothermal sources are

in remote places far from major markets. Renewable

electricity from hydropower and geothermal sources

in Iceland is now produced at five times the amount

needed to serve an average community of 330,000

inhabitants, yet distances from the nearest markets

range from 1,200 km to 1,800 km. Until now, electric-

ity has been marketed to international companies as

energy-intensive processes, including aluminium smelt-

ers and data centres with established plants in Iceland.

Plans for long distance cables to Europe are being

discussed, but the longest subsea cable to date is the

600 km NORNED cable between Norway and the

Netherlands. Advances in technology mean this could

prove a viable alternative in the near future. Another

method of exploiting stranded renewable power is by

using hydrogen and CO

to manufacture synthetic fuel

from the process industry, as described above.

Challenges and opportunities for a renewable

future

Environmental concerns, including those associated

with generating renewable energy must be taken seri-

ously. Vegetation, animal life, scenic landscapes, the

perception of wilderness, cultural heritage and alter-

native land use such as in tourism or agriculture may

be affected, which is why Iceland outlines examples in

its master plan of how national schemes may consider

these factors.

Geothermal energy has been a success in Iceland, as

well as other countries, for direct heating and genera-

tion of electricity. But for many developing nations,

adopting geothermal energy is the most promis-

ing path for escaping energy poverty and improving

daily life through food production and conservation.

International cooperation on research, developing effec-

tive technologies and capacity building, can improve

the odds for success.

The majority of the most cost-effective renewa-

ble energy sources today – such as hydropower and

geothermal energy – are classified as stranded power,

due to being located far from their biggest markets. One

solution is to move energy-intensive industries closer to

the sources, although advances in long-distance subsea

cables and the generation of synthetic fuels may provide

solutions for the future. Synthetic fuels could also offer

a link between fixed renewable energy sources and the

transport energy sector. For a country like Iceland, with

its abundant renewable energy resources, this appears

the most urgent area for development.