The deal means Laxey will be Vestmannaeyjar’s first major end user of renewable energy and is expected to catalyze the development of transmission lines to the islands.
Icelandic land-based salmon producer Laxey and Iceland’s national power company, Landsvirkjun, have entered into a Power Purchase Agreement (PPA) for renewable energy to support the development of a new land-based aquaculture facility on the Vestmannaeyjar islands.
Electricity delivery is slated to commence in April 2026, scaling up as production increases, with a projected peak power demand of 22 MW once operations reach total capacity.
Construction of the facility will be carried out incrementally over the next few years, with full completion anticipated by 2030.
Laxey’s commitment to purchasing Guarantees of Origins (GOs) ensures that the agreement qualifies as a green PPA. This initiative positions Laxey as Vestmannaeyjar’s first major end user of renewable energy and is expected to catalyze the development of transmission lines to the islands. The project is projected to generate more than one hundred jobs.
Lárus Ásgeirsson, Chairman of Laxey, underscored the company’s dedication to minimizing environmental impact and adhering to high production standards.
“It is Laxey’s policy that the company’s environmental impact will be kept at a minimum, and production will be held to the highest standards. Therefore, it is vital to utilise green energy,” he said.
“Changing to green energy is essential for land-based aquaculture to minimise the carbon footprint, reduce costs, and maintain consumers’ trust in the sustainability of operations. We at Laxey are very pleased with the PPA and look forward to future collaboration with Landsvirkjun.”
Hörður Arnarson, CEO of Landsvirkjun, expressed enthusiasm for the project’s potential to enhance value creation and exports from Vestmannaeyjar and Iceland. He emphasized Landsvirkjun’s commitment to responsible and sustainable utilization of renewable resources, in alignment with the company’s energy sales policy.
