Geothermal Globally
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Svartsengi: Resource Park – or how the Blue Lagoon was created from "waste"

Geotermia Svartsengi
Published:
April 29, 2026
Geothermal in the World

The story of the Svartsengi power plant on the Reykjanes peninsula is a perfect example of how an engineering problem can be forged into a global success. When this installation was built in the 70s, the main challenge was the chemical composition of geothermal water. It was brine with 2/3 seawater salinity, which instantly destroyed ordinary pipes. Therefore, a heat exchanger system was used where geothermal brine heats fresh water for nearby towns. Cooled, but still silica-rich brine was poured onto a nearby lava field to soak into the ground.

It turned out, however, that precipitating silica sealed the rocks, creating a vast, milky-blue pool. Residents began bathing in it, noticing the water's healing properties for skin. Thus was born the Blue Lagoon – today one of the most famous SPAs in the world. Svartsengi became the nucleus of the "Resource Park" concept, where the idea is zero waste. All streams of matter and energy are used by various companies centered around the power plant.

Basic project data:
Operator HS Orka
Start year 1976 (first unit)
Electric capacity 75 MWe
Thermal capacity 150 MWt (water 90°C)
By-product Blue Lagoon (silica-rich water)
Innovation Green methanol production (CRI) from CO2
Brine temperature 240°C (at wellhead)

One of the most important partners in this ecosystem is Carbon Recycling International (CRI). Next to the power plant, the George Olah plant was built, which captures carbon dioxide emitted by Svartsengi and combines it with hydrogen (produced in an electrolysis process powered by geothermal electricity). In this way, "green methanol" (Vulcanol) is created – a liquid renewable fuel that can power ships and even passenger cars, closing the carbon cycle in nature.

The power plant itself, despite its age, is constantly modernized. It produces electricity and heat for the entire Reykjanes peninsula. It is the first geothermal power plant in the world to combine energy production with such advanced biotechnology industry (production of cosmetics from algae and silica) and tourism, proving that heavy industry and ecology can live in full symbiosis.