Ladies and gentlemen,

It is a pleasure for me to be here with you today at this event organized by the Iceland Renewable Energy Cluster focusing on: Clusters as the Driving Force for Innovation.

A common phrase in both English and Icelandic is „Necessity is the mother of invention“. We are now witnesses to the ongoing converging crises of energy security and climate change in Europe. There is an urgent need for solutions. We need to heed the urgent call for the development of renewable energy as a result of the situation exacerbated by the war in Ukraine.

We have weathered storms on the energy front before in Iceland as the energy crisis of the seventies led to the nationwide incorporation of heating from geothermal energy. In the seventies, the term; “Climate change” had not been invented and nobody was talking about the connection between a changing climate and CO2. However, the main focus in Iceland was on being independent from the imported oil by using our domestic renewable resources, which had the added advantage of being clean and more affordable than oil.

The social and economic benefits of this development have been substantial. The macro economic benefits of the geothermal district heating systems annually amounts to around 7% of our GDP. And at least in large part shielded from price hikes of oil due to war or inflation. Shifting to locally sourced renewable energy, increases the national security while simultaneously aiding in the energy transition and fulfilling climate goals.

Dear guests,

There is a direct link between energy, climate and innovation, and innovation in the field of energy is of key importance in our efforts to combat climate change. Clusters are the driving force for innovation, yes. The energy cluster in Iceland has been a driving force for the field of geothermal energy both for the good of national development and as an engine for promoting the utilization of geothermal energy in a sustainable way around the world. The field of geothermal is now ever more abundant with innovative projects, where energy, innovation and climate priorities meet.

Within our borders we have prime examples of clusters at work and fostering innovation, especially surrounding geothermal power plants. I can mention the rapid development of better energy utilization with technologies that aim to utilize gases or run-off warm water from power plants, for new industries within the green industrial resource parks. In this respect we have success stories concerning fish-farming, algea-production, e-fuel production, medicines and other projects. The companies CarbFix and ClimeWorks, at the Hellisheiði geothermal power plant, are another good example. Developing ways to capture carbon-dioxide and turn it into minerals in the ground, or use for other purposes. This circular approach has generated new jobs and increased R&D activities and innovation in general. 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,

Now as never before we need drivers that propel us forward. We feel the urgency and need for a new phase of innovation to move us towards a carbon neutral and fossil free future. As an optimist, I see the positive effects of the crisis as the energy transition is gaining ground and speeding up.

Today we are in our third phase of energy transition, and aim to finalize the energy transition of Iceland at the latest before 2040, by being totally independent from use of fossil fuel in all sectors. We have every opportunity to do so. Where there is a will, there is a way.

I take my role seriously as an advocate for supporting endeavours in the field of energy as much as possible. Clusters thrive on cooperation and sharing of ideas and experiences. With that note I thank you for the opportunity to address you today and look forward to hearing from the speakers on the agenda today.