Syntholene Energy to build geothermal-powered synthetic fuel facility in Iceland

Kalina geothermal power plant, Húsavík, Iceland (source: flickr/ ThinkGeoEnergy, creative commons)

Carlo Cariaga 15 Apr 2026

Syntholene Energy (Syntholene) has entered into a definitive Land Lease Agreement for a 500-m² site at the Husavik Power Station, located in Norðurþing Municipality, Iceland, where the company will build its first demonstration-scale electrolyzer for the production of environmentally friendly, non-fossil aviation fuel. The facility will be powered by geothermal energy and will be using some of the existing infrastructure of the currently idle Husavik Power Station to reduce early-stage civil works and lower capital requirement.

The Lease Agreement will remain in effect until April 1, 2027, unless renewed by the parties or earlier terminated in accordance with its terms.

“This lease and permit represents a transformational step in establishing Syntholene’s Icelandic footprint,” said Dan Sutton, CEO of Syntholene. “The site at Húsavík Power Station offers an exceptional combination of geothermal availability, infrastructure, workforce readiness, and political alignment. It provides a strategic launch point for our first Demonstration Facility while offering Syntholene a pathway to scale in one of the most geothermally abundant regions on Earth.”

“The municipality of Norðurþing, owner of Húsavík Energy, is proud to support the development of Syntholene through its Demonstration Facility for non-fossil aviation fuel. Syntholene’s goals of the sensible use of geothermal energy to produce cost effective and environmentally friendly synthetic fuel for the benefit of society, align with the goals of the municipality of Norðurþing,” added Katrín Sigurjónsdóttir, Mayor of Norðurþing.

Syntholene Energy aims to deliver the world’s first high-performance, low-cost, and carbon-neutral synthetic fuel at an industrial scale. The company had previously announced the signing of a binding agreement for 20 MW of geothermal power to produce synthetic sustainable aviation fuel (eSAF).

Construction plans for the demonstration facility

The local planning and development authority of Norðurþing Municipality has also granted Syntholene a construction permit that will enable the company to start on-site preparation and construction activities. The permit is time-bound until March 2027, which means the the facility will only be used for scientific and industrial demonstration to validate system performance under real-world operating conditions.

During the permitted period, the Company intends to execute its ~1,000-hour effects test operational program, with a view to generating critical data to support engineering optimization, inform regulatory pathways, and validate commercial scale-up.

Syntholene has selected HD ehf  as the General Contractor for the demonstration facility. HD will be in charge of early-phase site execution activities, including overall project coordination, subcontractor management across civil, mechanical, and electrical scopes, and day-to-day site supervision. The mandate also includes the development and implementation of a comprehensive Health, Safety, and Environmental (HSE) framework tailored to a hydrogen-integrated demonstration environment, incorporating permit-to-work systems, lifting and hot works controls, interface management, and incident reporting protocols.

In parallel, HD will support permitting workflows and regulatory engagement with local Icelandic authorities, maintaining compliance tracking systems and identifying all outstanding requirements ahead of commissioning.

Giving new life to the Husavik Power Station

Commissioned in 2000, the 2-MW Husavik Power Station is notable as the first Kalina Cycle geothermal power plant. It has not produced electricity since 2010 despite an acquisition by Wasabi Energy in 2011. However, it remains a preserved geothermal energy center, incluyding heat exchangers, district heating supply lines, water cooling systems, and a 20-kilometer insulated pipeline from the Hveravellir geothermal field in Reykjahverfi.

With its core mechanical systems still intact, Syntholene can integate its Thermal Coupling and Solid Oxide Electrolyzer Cell (SOEC) demonstration system into the existing thermal footprint.

The Demonstration Facility intends to draw on the existing Hveravellir geothermal resource for thermal integration, and the Þeistareykir high-temperature geothermal field represents an opportunity for potential long-term commercial expansion. This is also in line with aspirations of utilizing the geothermal energy of Þeistareyki for next-generation industrial applications.

Source: Syntholene Energy