The Biotechnology company MýSköpun, a portfolio company of The New Business Venture Fund Kría, has signed a letter of intent with Landsvirkjun regarding the supply of electricity and the utilisation of geothermal heat from the Þeistareykir Power Station for a planned high-tech production facility for natural astaxanthin near the power plant.
MýSköpun plans to build a specialised high-tech production facility covering approximately 10,000 square metres, using advanced cultivation technology to produce astaxanthin from the microalga *Haematococcus pluvialis*. Astaxanthin is a valuable natural antioxidant used in dietary supplements and cosmetics, serving rapidly growing international markets.
The location at Þeistareykir offers favourable conditions for energy-intensive high-tech production. Access to renewable electricity, opportunities to utilise geothermal heat from the power plant, and natural cooling conditions can contribute to efficient and cost-effective operations.
The development is expected to take place in phases and could eventually create up to 40 specialised, permanent jobs in Northeast Iceland. Construction of the first phase is scheduled to begin in 2027.
“Signing this letter of intent is an important milestone for MýSköpun and brings us one step closer to our goal of establishing high-tech biotechnology production at Þeistareykir,” says Dr. Ingólfur Bragi Gunnarsson, CEO of MýSköpun.
He notes that the involvement of the private equity fund Landvættir as a cornerstone investor has played a key role in preparing the project.
“Access to renewable electricity and the opportunity to utilise geothermal heat from the Þeistareykir Power Station are essential prerequisites for building internationally competitive production that generates new export value and strengthens economic activity in Northeast Iceland,” says Ingólfur Bragi.
Tinna Traustadóttir, Executive Vice President of Sales and Business Development at Landsvirkjun, says the project aligns well with the company's focus on making better use of the region's resources.
“In addition to supplying green electricity, this creates an opportunity to utilise heat from the Þeistareykir Power Station. This heat would otherwise be released unused into the environment, but here it can be turned into something valuable.”
Read the original press release on Landsvirkjun's website in Icelandic.
