Ladies and gentlemen,

It is a great pleasure for me to take part in this event of the Iceland Innovation week, arranged by the joint forces of The National Power Company (Landsvirkjun) and Business Iceland (Íslandsstofa). Today we will, as the heading says, look into the future where the topics are matters of energy & food.

These topics today are of the highest importance, nothing less than the life sustaining elements, energy and food. Looking into both we see various similarities. Lets take a closer look at what unites food and energy and lets look into the future as is the headline of our session today.

First lets discuss the environmental aspects.

Green energy and food both rely on clean environmental resources that need to be produced in a sustainable and climate friendly manner. In Iceland we are fortunate with our natural renewable energy resources. The country is run entirely on renewable energy – by harnessing hydro and geothermal sources for sustainable energy. The overall share of renewable energy is amongst the highest in the world. Demand for green energy is continually rising and producers of food or industrial products can be assured that the electricity is green and sustainable.

Second, lets take the perspective of security issues.

Food and energy matters have great impact on national security. We live in uncertain times were war is impacting the energy and food security of people around the world. A sombering fact is that we have a war in Europe leaving energy and food production at risk. Many nations are as a result in a vulnerable state, especially nations closer to combat areas. Shifting to locally sourced renewable energy and food production, increases the national security while simultaneaously aiding in the energy transition and fulfilling climate goals. Our situation in Iceland is in this area, thankfully, relatively good, as only 15% of primary energy production is imported oil, and mostly from our friendly Nordic cousins in the East. And the ocean surrounding Iceland is brimming with fish, of which most is of course exported, but could sustain the population if need be.

Third, topic is the circular economy - preserving resources and eliminating waste.

Preserving and maintaining our resources is of utmost importance and part of that is using them in an efficient manner by reducing or elminating waste as much as possible, as we strive for in a circular economy. The joint forces of food and energy are mutually supportive and can unleash great value for local communities and entrepreneurs.

Multi-use of material and energy from geothermal developments and waste heat from industry can benefit several sectors, from high technology and industrial processes to food production. Furthermore, geothermal energy and it‘s spin-off products, are a reliable power source for various innovative industries and processes, such as producing methanol fuel from carbon dioxide, fish-farming, algea production, health-care products and last but not least geothermal energy is an important factor in our tourist attractions such as the Blue Lagoon.

The technological innovation offered by smart technology must be used to improve system efficiency and flexibility. Multiple use of resources for all energy will be encouraged, maximizing the possible use of all potential by-products from energy development and waste management wherever feasible.

Geothermal energy provides a unique opportunity of a circular economy approach, with full utilization of all the value streams from the resource and connecting different industries within a geothermal resource park, where the waste from one is a raw material for another.

Ladies and gentlemen,

As a final point and a summary, lets look into the future and see how our ambitious policies are in place and at work. Iceland is a strong advocate of a sustainable future and these three elements I have mentioned as can be seen in the government‘s long-term Energy policy with the climate goals.

The long-term objective of the energy transition is for Iceland to be climate neutral and independent from fossil fuels where we meet all the energy needs of the country in a sustainable manner, using renewable energy sources by 2040.

To ensure continued universal access to sustainable energy, the long-term energy policy and it‘s action plan includes plans to ensure diversity in energy production, ensure stability and foreseeability through energy forecasts and monitoring of energy security is stressed.

Energy security is the main focus of the energy policy, where energy demand should be met by sufficient production. We currently have the situation of demand exceeding supply. The demand for green electricity, for various exiting prospects, continues to grow but the supply has been lagging for many years. This is a serious matter that my ministry has been focused on since my first days in office. Various measures are being worked on in the ministry to tackle this matter. The third phase of the master plan is now before the Parliament, Althingi and hopefully approved so projects there can move ahead. A bill of law which allows for a fast-track of capacity enlargment of current energy facilities has also been introduced to the Parliament. The government has also placed emphasis on improving and speeding up the licensing and planning processes for new development.

Improved energy efficiency and minimizing energy waste, are key factors in the Energy Policy with multi-use of by-products and energy as contributing factors for other purposes, such as food production. Opportunities will be identified to further develop a circular economy where practicable, both in energy development and use.

I would also like to mention an important document that was published in the beginning of March of this year, which is a Status report or Green book describing the current state of Energy matters in Iceland along with the challenges we face so as to fulfill our future goals. This report has drawn great attention, especially the scenarios for increased energy production for increased electricity and e-fuels that will serve the energy transition. The report will be published in English soon.

Dear guests,

Iceland will continue to use its strength in the renewable energy area for the benefit of important green sectors such as food production. The integration and cooperation gives us multi-stage benefits for the environment, circular economy and national security. It is our strong belief that sustainable utilization of renewable energy can and should play a key role in our global actions towards climate change. Iceland is a role model for harnessing natural resources for energy needs and can be a role model in sustainable food production in a circular economy as well. We have overcome difficult challenges before, in my mind we can be optimistic for the future.

Thank you for the opportunity to address you in Innovation week. As Minister for energy, climate and environment, one of the most enjoyable parts of my job is meeting entrepreneurs with many innovative ideas for new green business opportunities. I take my role seriously as an advocate for supporting endevours in this field as much as possible. I look forward to listening and learning from the contributors partaking in the impressive program we have ahead of us.