The geothermal area by Þeistareykir offers extensive opportunities for geothermal utilisation. Preparation measures for the sustainable development of geothermal power projects within the area have been ongoing for a number of years. The first step will include the two-phase construction of a 90 MW geothermal power station. An environmental impact assessment has been carried out for anything up to a 200 MW power station in Þeistareykir.
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Sustainable Geothermal Utilisation
The 90 MW Þeistareykir geothermal project will be executed in two 45 MW phases. The first 45 MW phase will be an initial step in the responsible development of sustainable geothermal utilisation in the northeast of Iceland. Extensive preparation work was carried out at Þeistareykir this year. The unique nature of the area was considered during the execution of all preparation work and an emphasis was placed on working in harmony withthe environment and in consensus with society.
The Þeistareykir land area is a historic farm site which lies to the southeast of Húsavík.
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Preparation measures for the power station
The tender design process for Þeistareykir began in the autumn of 2011 when the design work was awarded to the consortium of engineering consultants Mannvit and Verkís. The two companies had just completed design work on the Hellisheiði Geothermal Station, one of the largest design projects completed in Iceland in the last few years and an example of Icelandic ingenuity in the geothermal sector. The main objective was to design a profitable, reliable power station in harmony with its surroundings and the environment. One of the main focuses was the environment, considering issues such as the sustainable utilisation of the geothermal resource and groundwater, the re-vegetation of disturbed areas and land reclamation to replace grazing land.
Tender design work was completed in the first part of 2014 and tenders were released in March for two turbines, steam condensers, cooling towers and connected equipment. Four feasible offers were submitted.
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Proposed structures
Overview
The proposed powerhouse can be seen on the right and has two turbine halls. The cooling towers can be seen in the middle of the picture as well as the mist eliminator, where the pipeline runs to the steam separator (at the top of the picture). The well head and muffler can be seen to the far left. Construction work is estimated to begin in May, 2015.
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145 employees are expected to work on the development of the Þeistareykjir Geothermal Power Station during the next two summers and 80 employees will be involved in the summer of 2017.
The project schedule includes the construction of a powerhouse, including a facilities building and workshop, as well as two turbine halls. A steam separator station, re-injection system and pumping station for the cold water supply will also be constructed as well as steam pipelines connecting the three current drilling areas. The estimated timeframe for the construction of the powerhouse, installation of the turbine and construction of the steam pipeline is three years. Other main works will include the manufacture and installation of electrical equipment and control systems for the power station. Construction work on the power station is expected to begin in the spring of 2015.
Nine production wells have been drilled at Þeistareykir. The wells produce a steam supply equal to 50 MW of electrical energy. The decision to install the second turbine would mean drilling eight to nine further production wells.
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Overview of preparation work completed in 2014
Preparation measures have been undertaken with a view to beginning work at Þeistareykir, at short notice. Groundwork on the powerhouse site was completed and water utilities were constructed during the summer of 2014. Extensive exploration drilling also took place. Drilling work included water access, re-injection and drainage wells for the power station as well as research wells to support further research on groundwater. The first 15 km of the access road to the site was completed and roadside edges were completed.
Construction work on the road will be completed in the summer of 2015 including road surfacing for theentire length of the road, up to the station.
Other preparation projects included the set-up of work camps for Landsvirkjun and the contractors, the set-up of an electrical distribution system and telecommunications in the area, in cooperation with Landsnet.
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Capacity testing
October 2014
Wells are opened for discharge at full output during capacity testing to simulate the operation of a 45 MW power station. The objective is to assess if and how the operation of the geothermal station at Þeistareykir would affect the geothermal reservoir. Capacity testing is a component in verifying the sustainability of the geothermal area and has been ongoing since October, 2014.
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In harmony with the environment and in consensus with society
The unique environment of the Þeistareykir area has been an important consideration since preparation work for the Þeistareykir project began. The area was previously almost untouched, with the exception of archaeological artefacts and traces of sulphur mining from previous centuries. Plans for development have therefore included the demarcation of areas protected for archaeological and environmental reasons to prevent any disturbance to these areas.
Visual aspects have also been considered during the design process for the power station and landscaping and finishing work is therefore completed alongside construction work. Examples of this include sowing on road verges and the utilisation of vegetation cover extracted from construction areas to vegetate the roadside and to cover earthen berms.
37,118 larch and birch plants were planted in lupine-rich areas in the Reykjaheiði heathland area in Norðurþing and in close proximity to the power station road. There are plans to plant a further 30 to 40 thousand plants next year.
Earthern berms are constructed to minimise the visual impact of wells and pipelines. The photograph shows the area overlooking drilling area ‘A’ from the Þeistareykir cabin and down to the Bæjarfjall Mountain. The berm will eventually be covered with vegetation.
This photograph shows the newly constructed road from Húsavík to Þeistareykir. An emphasis was placed on completing roadside edges to ensure that the road merged with the surrounding environment.
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Plans have been developed to re-vegetate any land lost as a result of the construction of the power station. The first projects were completed last summer in cooperation with the municipalities of Þingeyjarsveit and Norðurþing. Landsvirkjun also cooperated with local land owners and the Soil Conservation Service of Iceland to reclaim grazing land. Approximately 40 hectares of land was sown in the Þingeryjarsveit area and over thirty thousand plants were planted in lupine covered land to the north of the Höskuldsvatn Lake
Landsvirkjun has conducted regular monitoring on the utilisation area in Þeistareykir. The objective is to understand the baseline for environmental aspects before geothermal utilisation proceeds. This enables us to understand how and when the operation of a geothermal power station affects its surroundings.
More detailed information on environmental monitoring, the environment and visual aspects can be found in Landsvirkjun’s Environmental Report.
Þeistareykir is located in a highland area and is characterised by difficult terrain but the construction of the power project and the road network would improve access to the area. Landsvirkjun is currently working on a travel survey of the area which measures tourism traffic before and during construction and once the power station has begun operations. The power station access road from Húsavík will provide better access to the area and the objective of the survey is to assess any subsequent changes to the number of visitors, as a result of the Þeistareykir project.
Landsvirkjun entered into cooperation with the Þingeyjarsveit tourism association, Húsavíkurstofu (Visit Húsavík) and Mývatnsstofu (Visit Mývatn) to address the challenges and opportunities within the tourism industry as a result of the construction of Þeistareykir.
Landsvirkjun is committed to sustainable energy generation in harmony with the environment and in consensus with society. Open meetings with local residents, within Landsvirkjun’s operational areas are an important part of this process. An open meeting was held in 2014 to update residents on the status of the Þeistareykir project. Meetings were also held with stakeholders to support active information dissemination and to gather information on the views and expectations of local residents.
145 employees are expected to work on the development of the Þeistareykjir Geothermal Power Station during the next two summers and 80 employees will be involved in the summer of 2017. 
