Landsvirkjun’s carbon footprint is below average when compared with other European countries

The Company’s carbon footprint is very low and we are committed to becoming carbon-neutral.  We work hard to fully understand the impact of our operations and the results of so-called life-cycle analyses show that the carbon footprint of our power stations is very low.

The average carbon footprint of electricity generation in Europe is 417 g CO2-eq / kWh, while the carbon footprint of Búðarháls Hydropower Station is 1.5 g CO2-eq / kWh and the carbon footprint of Fljótsdalur Hydropower Station is 1.2 g CO2-eq / kWh. The carbon footprint of the two wind turbines at Hafið is estimated to be 5.3 g CO2-eq / kWh over their lifetime, whereas the carbon footprint from larger wind farms in Iceland would probably be much lower.

Landsvirkjun is committed to becoming carbon neutral by 2030.

A higher international grade

Landsvirkjun is part of a group of about seven thousand companies that submit information to the international association CDP.  The CDP runs the global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts. We have built the most comprehensive collection of self-reported environmental data in the world.

Our rating with the international organisation CDP rose from C to B in 2018, which (according to CDP's rating system) means that the Company has a good overview of climate issues in its operations and manages them effectively. The average grade in Europe is B minus and the average grade in the global energy industry is C.

Landsvirkjun supports corporate transparency in the fight against climate change and wants to measure its performance against other global corporations

Action on climate change in 2018

Offsetting emissions
Landsvirkjun is committed to achieving its goal of carbon-neutral operations. The Company systematically works on reducing emissions and also carries out a number of carbon sequestration projects such as land reclamation and forestry. A wetland reclamation project is also under preparation to further reduce carbon emissions.

Internal carbon prices
Internal carbon prices are the cost criteria for greenhouse gas emissions.  Landsvirkjun began the implementation of internal carbon prices in 2018 and the work is ongoing. Greenhouse gas emissions are now registered as costs in the Company's operation to support the Company's goal of becoming carbon neutral in 2030.

Emission allowances in the European Union's trading system were used as the basis for this initiative. Landsvirkjun's internal carbon prices were also assessed based on Landsvirkjun’s carbon offsetting resources and their ability to reduce GHG emissions.

Green Bonds 
In March 2018, Landsvirkjun became the first Icelandic company to issue green bonds. Revenue from the sale was used to finance the Þeistareykir and Búrfell projects. Investors are given the opportunity to invest in renewable energy, thereby lowering their carbon footprint.

More about the green bond issuance:

Increased energy efficiency and energy generation using renewable energy sources
The annual utilisation of the water resource at Búrfell Station was previously approx. 86%, but increased to 94% after the expansion of the station (an increase of 8%, or 300 GWh).

Energy transition in transport
Landsvirkjun is an active participant in the ´energy transition in transport´ campaign in Iceland both in collaboration with Samorka and as a shareholder of Íslenskri NýOrka and Græn Orka. The Company hopes to increase its fleet of electric vehicles to 25% by 2020. Nearly 22% of Landsvirkjun's vehicles are now energy-efficient: 14% electric, 7% hybrid and 1% hydrogen.

Average emissions from Landsvirkjun’s vehicle fleet were 4.3 tonnes CO2- eq in 2018, a decrease of 20% since 2014.

Average emissions from vehicles owned and operated by Landsvirkjun

Emissions reduced by eco-friendly concrete
Life-cycle analyses show that a large proportion of Landsvirkjun’s carbon footprint from its hydropower stations can be attributed to cement production, or 15-30% (based on 100 years of operation). Landsvirkjun launched a pilot project, based on these results, alongside the expansion of the Búrfell station. The project used eco-friendly concrete which has a lower proportion of cement than conventional concrete. The eco-friendly concrete, which was used to construct the entrance to the station, is an Icelandic invention which mixes silica and basalt with lower quantities of cement. The cement has a 25-30% lower carbon footprint than conventional concrete.

A comparison of the life-cycle analyses of the Fljótsdalur and Búðarháls stations reveals that emissions were lower at the Búðarháls Station. This can be attributed to the fact that cement was produced in Iceland during the construction of Fljótsdalur Station, whereas cement was imported from Denmark for the construction of Búðarháls Station. The emissions from cement production at Fljótsdalur are therefore counted as part of Iceland's emissions, and cement from Búðarháls Station is counted as Denmark’s.

Landsvirkjun considers the use of eco-friendly concrete to be an important step in reducing the carbon footprint of hydropower stations.