Carbon Iceland project launched to convert CO2 emissions into renewable marine fuel

The Carbon Iceland project is preparing to capture more than one million tonnes per year of CO2 from the largest smelters in Iceland. The captured carbon will be utilised in the production of renewable fuel for Icelandic maritime industries.

Norðurá, a Century Aluminium company based in Grundartangi, will be the first site to become a CO2 capture and production facility for the Carbon Iceland project. As part of the project, the smelter will be equipped with carbon capture technology, provided by Mitsubishi Heavy Industries, and will store the captured carbon for use in Iceland’s domestic maritime sector.

Útgerðarfélag Reykjavíkur, an Icelandinc sustainable fishing company, has signed an off-take agreement with Carbon Iceland. The project will provide renewable fuel for the company’s factor Factory Vessel, Guðmundur í Nesi RE-13, and also has plans to export fuels to large off-takers in Europe and the US.

Announced in October 2024, Carbon Iceland has already received support from Mitsubishi Heavy Industries, who will be providing carbon capture technology solutions, and Siemen’s Energy, who have expertise in the project’s Energy System Design Optimisation and harnessing hydrogen production technology for fuels.

At the project’s inaugural meeting in Reykjavík on 17-18 October 2024, the Icelandic Minister of the Environment, Energy and Climate, Guðlaugur Þór Þórðarson, hailed the project as an important step in reducing the amount of CO2 emissions entering the atmosphere.

The Carbon Iceland team also met with the President of Iceland, Madam Halla Tómasdóttir, to introduce the large capturing plan and to production of renewable fuel for Iceland’s industries.

Source: Carbon Iceland