Environment

The Reykjavik Energy Group (OR Group) has set itself the goal of reducing the emissions of carbon dioxide of its operations by 60% between 2015 and 2030. The emissions are calculated according to the Greenhouse Gas Protocol – Corporate Accounting and Reporting Standard. Greenhouse gas mitigation projects like carbon sequestration in land restoration is reported separately, see appendices. The reason for this is that, with mitigation projects like forestation and land reclamation, greenhouse gasses are captured from the atmosphere and sequestered in biological sinks, without directly reducing emissions from the operations. Reinjection of the carbon dioxide from the Hellisheidi Geothermal Power Plant and mineralization of it in the basaltic rock using the CarbFix technology, accounts for the largest share of reducing the Group’s carbon footprint, see Gas into Rock. This reduction is within the boundaries of the Hellisheidi Geothermal Power plant. In 2017, the relative carbon dioxide reduction of the plant was almost 35% of its emissions.

• Scope 1 - Direct emissions: Geothermal power plants, low-temperature fields, supply and distribution systems, vehicles and premises.
• Scope 2 - Indirect emissions: Electricity and hot water for own use.
  
• Scope 3 - Indirect emissions: Waste, employees air travel, employees travel to and from work.
  

In 2017, scope 1 or direct emissions from the Reykjavik Energy Group’s operations amounted to 40,300 tonnes of CO₂ equivalents. The emissions are from the geothermal power plants of ON Power, Reykjavik Energy’s subsidiary, due to the production of electricity and hot water, the production of hot water in the low-temperature fields of Veitur Utilities for space heating, as well as Veitur Utilities’ pipeline system and from the car fleet and premises of the Group. Scope 2, indirect emissions from purchased electricity and heating for own use amounted to 2,800 tonnes of CO₂ equivalents. Scope 3, indirect emissions from waste produced by the operations, as well as emission from employees commuting to and from work and their air travel, amounted to 990 tonnes of CO₂ equivalents. Greenhouse gas mitigation projects like carbon sequestration in land restoration is reported separately. As with these mitigation projects, greenhouse gasses are captured from the atmosphere and sequestered in biological sinks, without directly reducing emissions from the operations. Greenhouse gas emissions from the Group’s operations, without mitigation, makes up 2% of total emissions in Iceland on the basis of the total emissions recorded in 2015 (Environment Agency of Iceland, 2018).

Carbon intensity is understood as the level of carbon emissions relative to each operating unit, e.g. income, production units, etc. On the basis of the total revenue and size of the premises of the Reykjavik Energy Group, the Group’s carbon intensity has decreased since 2015. 

One of Reykjavik Energy’s subsidiary, ON Power, produces electricity for consumers and hot water, which is sold wholesale to Veitur Utilities, one of Reykjavik Energy’s subsidiaries. The carbon footprint for each produced unit of electricity at ON Power has decreased since 2015. Veitur Utilities distributes electricity and hot water for space heating to consumers along with potable water and manages the sewerage system. At Veitur Utilities, the carbon footprint of per produced unit of potable water, hot water and electricity has decreased since 2015. The Reykjavik Fibre Network is a telecommunications company owned by Reykjavik Energy. In 2017 the carbon footprint of the data transmission through the fibre network was assessed and turned out to be 0.7 g CO2 equivalents/gigabyte, see table and figure. 

*Carbon footprint has been assessed approximately 0 g/kWst.
**According to Iceland Inventory Report, the weighted average of greenhouse gas emissions per kWh of electricity produced by hydro power and geothermal energy in Iceland in 2015 was 10.1 g. For hydroelectric power, greenhouse gas emissions per kWh of electricity amount to 1.5 g and for geothermal energy 32.8 g.

The Reykjavik Energy Group produces renewable energy, electricity and hot water, from geothermal energy and hydro power. The percentage of the Group’s own use of electricity in relation to the volume produced in 2017 was 10% and 1% of the produced hot water. Direct use of primary energy of electricity and hot water has increased since 2015. Fossil fuels, particularly diesel oil, are used directly in connection with the production and operations of the Reykjavik Energy Group. Use of diesel oil has increased since 2015 but the use of gasoline has decreased. In order to reduce the direct use of energy due to transport related to the operations, a schedule has been established for the renewal of the car fleet by climate friendly vehicles until 2030, since there is still room for improvements, see appendices. For the information to be comparable, the primary energy consumption is expressed in mega joule (MJ), see table. 

* Primary energy use is based on utilisation down to 5°C.
** The calculation quotients for fossil fuels are based on their lower heat value.

The Reykjavik Energy Group’s own use of electricity is solely for the production of hot and cold water, the pumping of sewage and the operation of premises. Own use of electricity and hot water in relation to the size of the premises and number of employees of the Group in 2017 has increased since 2015.  Own use of fossil fuel in relation to number of employees has decreased since 2015, see table.  For the information to be comparable, the primary energy consumption is expressed in mega joule (MJ).

* Primary energy use is based on utilisation down to 5°C.
** The calculation quotients for fossil fuels are based on their lower heat value.

The Reykjavik Energy Group produces renewable energy, electricity and hot water for space heating, by utilising geothermal energy and hydro power. Part of this energy is used by the Group for its own operations. The main energy source that is used in operations is electricity. Percentage of renewable energy  is 99% of total energy use. For the information to be comparable, the primary energy use is expressed in mega joule (MJ).

* Primary energy use is based on utilisation down to 5°C.

For every mega joule (MJ) that the Reykjavik Energy Group is using of non-renewable energy, 830 mega joules are renewable energy.  

In 2017 Veitur Utilities, one of Reykjavik Energy’s subsidiary, ensured the supply of potable water to the residents and business community in the distribution area, in accordance with established quality standards and the statutory and regulatory provisions of Veitur Utilities, see appendices. 

Veitur Utilities operate thirteen water utilities, and the water is used in the Reykjavik capital area as well as in West and South Iceland. ON Power, one of Reykjavik Energy’s subsidiary, has two water sources, see appendices. The water utilities’ distribution system caters for up to 45% of the nation. Preventive measures are systematically worked on and the quality of the water is monitored. 

In 2017 all of the samples that were taken in Reykjavik municipality met quality requirements. Bacteria, which exceeded the quality limit, were found in one sample in West Iceland, but when the sampling was repeated the sample fulfilled quality requirements. Otherwise all samples taken in West and South Iceland met quality requirements, see appendices. 

Heidmörk is Veitur Utilities’ main water extraction field for the capital area and this water production is based solely on pure and untreated groundwater. Veitur Utilities keeps the water protection area under surveillance, including the transport of oil and petrol, along with other hazardous substances, see appendix. Water conservation is delimited around the water sources. The Reykjavik Energy Group strongly emphasises water conservation to ensure future generations can enjoy the natural quality of wholesome and untreated water. 

Apart from potable water use, a large volume of water is used for the geothermal power plants’ operations and cooling of equipment.

Greenhouse gas emissions from waste have risen since 2015. Sludge from sewage treatment plants is the highest percentage of the total volume of waste to landfilling, i.e. about 60% of the total volume. Asbestos accounted for 30% of the total volume. There is a limited possibility of controlling the amount of waste of this type, but care is taken to ensure that it is treated in approved landfill sites. The volume of other waste either increased or decreased. Office-waste increased, among other things, due to one-time operations as a significant part of staff moved this year due to moisture damage in the premises of Reykjavik Energy. Appendices show how waste is divided between waste categories, work sites and municipalities. 

A campaign was launched to reduce food wastage and it dropped by 50% towards the end of 2017. This campaign continues. 

The Reykjavik Energy Group works according to an Environmental and Resource Policy, which marks the Group’s commitment to steadily improve on environmental issues. It is founded on five principles which apply to all operating units: Responsible resource management, value of utility operations, minimising the impact of emissions caused by operations, as well as the impact on society and the activities of the company. The policy forms the basis for good collaboration with stakeholders. The Environmental and Resources Policy is founded on the values of the comprehensive policy of the Reykjavik Energy Group. The Group has defined over twenty significant environmental factors. These factors are defined in order to be able to approach the organisation of environmental issues with clear objectives and defined responsibilities for those concerned.

In this section the environmental impacts of the significant environmental factors identified by the Reykjavik Energy Group are discussed, taking into account the principles stated in the Environmental and Resource Policy of the company. Furthermore, an environmental incident at the Andakílsá Hydropower Station and a failure in the sewage pumping station at Faxaskjól is being discussed.                                                               

An emphasis is placed on the responsible management in low- and high temperature fields, abatement of hydrogen sulpide, less discharge of geothermal water and wastewater from the sewerage system. The hydrogen sulphide abatement unit at the Hellisheidi Geothermal Power Plant has been operating effectively and removes about 70% of the hydrogen sulphide and 35% of the carbon dioxide emissions from the power plant. Achieving the management of the discharge of geothermal water at the Hellisheidi and Nesjavellir Geothermal Power Plants has been prioritise. With the advent of the new sewage treatment plants at Kjalarnes, Akranes and Borgarnes, the residents and business community in all the collection areas of the company will soon have the option of connecting to sewerage systems or treatment works. 

A considerable amount of silt from the intake reservoir of the Andakílsá Hydropower Station was carried into the Andakílsár river in mid-May 2017, when the reservoir was drained for a condition assessment of a dam construction. The surveillance was insufficient and the staff of ON Power, one of Reykjavik Energy’s subsidiary, failed to realise the extent of the solid discharge while the bottom outlet gate of the dam remained open. ON Power undertakes responsibility for the environmental effects on the flora and fauna of the Andakílsár river and has endeavoured to reduce them.

The Marine Research Institute was asked to investigate the environmental impact and provide guidance on responses. A work group was appointed, comprising experts from the Marine Research Institute, the University of Iceland, representatives from angling associations, the health authorities of West Iceland, Skorradalshreppur municipality, Borgarbyggd municipality and ON Power. Mitigation measures were implemented to reduce negative effects on the flora and fauna. 

The situation continues to be monitored so that decisions on further measures can be made.

In June 2017, there was a malfunction in the emergency outlet in the wastewater treatment station at Faxaskjól in Reykjavík. Untreated wastewater went into the ocean for 17 days, from mid-June to mid-July. Veitur Utilities, one of Reykjavik Energy’s subsidiary, neglected to send official notification on the matter and the company regrets any discomfort this may have caused the public. In the wake of this, Veitur Utilities and the Reykjavik Health Authority revised work procedures and changed them to make notifications to the public more systematic. An overview of the wastewater system can now be seen on Veitur Utilities’ website. The primary treatment station at Faxaskjól transports wastewater from Nordlingaholt, part of Árbær, Breidholt, Fossvogur, Gardabær and Kópavogur to the wastewater treatment plant in Ánanaust.

In 2017, production in the low-temperature fields of Veitur Utilities, one of Reykjavik Energy’s subsidiary, in the capital area and most distribution areas in South and West Iceland was in accordance with the company’s quality standards and statutory and regulatory provisions.  Veitur Utilities operates thirteen district heating utilities: one in the capital area, which is the largest, and five in West Iceland and South Iceland, see appendices. The district heating utilities service 70% of the nation. Low-temperature fields are utilised in a stable and balanced manner in the capital area and everything indicates that this usage can be maintained for the foreseeable future, see appendices. The condition of most of the low-temperature fields in South and West Iceland is good, although there are some exceptions, such as in Laugaland in Holt, which services populated areas in Hella and Hvolsvellir and the Hveragerdi area. In the autumn of 2017,  drilling for hot water was undertaken in Laugaland, but the results did not live up to expectations. The situation will be re-evaluated in the spring of 2018. Water and steam production improved in Hveragerdi in 2017, compared to 2016. 

In 2017, power production at Nesjavellir and Hellisheidi was in accordance with the geothermal utilisation licence for the power plants and the objectives of ON Power, one of Reykjavik Energy’s subsidiary. It transpired that the pressure drop in the production field of the Hellisheidi Geothermal Power Plant was not as severe as had been expected. ON Power carefully monitors the pressure drop in Hverahlíd and in the older production field of the Hellisheidi Geothermal Power Plant, see appendices. In 2017, preparations started on obtaining a licence to expand the production field further to ensure the sustainable utilisation of the geothermal resources for the Hellisheidi Geothermal Power Plant.  Production at the Nesjavellir Geothermal Power Plant was similar to the past years.

In 2017, some 60% of the geothermal water from Hellisheidi Geothermal Power Plant was reinjected into the geothermal field at the power plant. Some 30% were released as steam through the plant’s cooling towers and the rest, some 7%, was released via overflow, see appendices. In 2017, some 50% of the geothermal water from Nesjavellir Geothermal Power Plant has been reinjected via injection wells, see appendices. Geothermal water is reinjected to protect surface water and groundwater because disposal water is hotter and has a different chemical composition than groundwater. 

Another objective is to manage the reinjection to better utilise the geothermal reservoir. Under certain conditions in the operations of Hellisheidi Geothermal Power Plant, only a part of the geothermal water can be reinjected via deep injection wells, which are connected to the same high-temperature system as the production wells. Under these conditions a part of the geothermal water is injected into shallow wells near the power plant. 

In recent years, many research and development projects have been carried out to meet Hellisheidi reinjection requirements. Significant results and knowledge have been achieved, see appendices. With the redesign of the cooling tower at the Nesjavellir Geothermal Power Plant in 2017, the discharge of heated groundwater will decrease considerably.   It is assumed that water temperature in streams by Lake Thingvallavatn will decrease, see graph. The concentration of chemicals in monitoring wells in the vicinity of both power plants is below the limits set for potable water, see appendices.

The Nesjavellir Getohermal Power Plant became operational in 1990.
When electricity production started at the plant in 1998, thermal pollution increase significantly.
Thermal pollution decreased somewhat after reinjection wells came into use between 2004-2008 and the cooling tower came into operation in 2005.

Reinjection can cause seismic activity, so-called induced seismic activity or triggered earthquakes. This is well known in the reinjection fields of the Hellisheidi Geothermal Power Plant, particularly in the Húsmúli area, see appendix. The earthquakes occur when the reinjection releases tension that has built up in the bedrock due to movements in the earth’s crust. ON Power, one of Reykjavik Energy’s subsidiary, follows work procedures that are designed to minimise the risk of induced earthquakes in the area.  

In the latter half of 2017, four notifications were sent to the Icelandic Meteorological Office and the Department of Civil Protection of the Icelandic Police due to changes in reinjection. Minor tremors were measured in connection with these changes, as was to be expected, but none of them were powerful enough to be felt in populated areas. Four new seismic indicators were installed to the south of Hengill in the autumn of 2017.

In 2017 the concentration of ambient hydrogen sulphide (H₂S) emissions in urban areas exceeded regulatory limits, twice in Nordlingaholt and twice in Hveragerdi. The hydrogen sulphide abatement unit at the Hellisheidi Geothermal Power Plant has been operating effectively and removes about 70% of the hydrogen sulphide emissions from the power plant, see appendices. 

In December 2017, the connection of the hydrogen sulphide abatement unit, for further removal and reinjection, was completed. Testing subsequently started and the results are expected in 2018. Hydrogen sulphide emissions from the geothermal power plants in the Hengill area have been ON Power’s, one of Reykjavik Energy’s subsidiary, biggest environmental challenge. Hydrogen sulphide causes odour pollution, corrosion, and in high concentrations can be a hazard to human health. Hydrogen sulphide emissions from the Nesjavellir and Hellisheidi geothermal power plants amounted to approximately 9.5 thousand tonnes in 2017, see appendices.

A plan for traceless operations is being undertaken.

In 2017, jardhitagardur (e. geothermal park) was established by the Hellisheidi Geothermal Power Plant in an endeavour to increase the diversified usage of the thermal energy, electricity and geothermal gas from the plant. A diversified use of geothermal energy can increase efficiency and strengthen environmentally sound operations and innovation in the economy. Separated water from the Hellisheidi Geothermal Power Plant is used for the production of dietary supplements by the geoSilica company and various start-up businesses have shown an interest in using the carbon dioxide from the plant.  

In 2017, new wastewater treatment plants became operational in Kjalarnes and Akranes and the plant in Borgarnes will become operational in the spring of 2018. In all the collection areas of the company, the residents and business community have the option to access to wastewater systems or treatment works in accordance with statutory and regulatory requirements and the objectives of Veitur Utilities, one of Reykjavik Energy’s subsidiary. Veitur Utilities manages the development and operation of wastewater systems in Reykjavik and West Iceland, see appendices. Wastewater from Kópavogur, Mosfellsbaer and Seltjarnarnes, in addition to parts of Gardabaer, is also handled in sewage treatment plants at Ánanaust and Klettagardar. 

The wastewater systems of Veitur Utilities service 40% of the country.  Results of measurements on the periphery of the dilution area in Faxaflói in 2017 show that the number of microbes was under environmental limits, but above the limits in several places along the coast, see appendices. 

The wastewater discharge report of Veitur Utilities is in the appendix. Samples collected from drainage and/or at reception of biological wastewater treatment plants in West Iceland show microbes were above environmental limits. Over the past years, endeavours have been made to find an explanation for this in collaboration with the health authorities of West Iceland. An acceptable explanation for the presence of the microbes has yet to be found.

The Reykjavik Energy Group administers about 19,000 hectares, some 16,000 hectares of which are within protected areas, see appendices. The appendices contain a list of the species of birds and plants on the Red List who have habitats within the areas. The emphasis is placed on restoration and reclamation of the natural environment and reducing the visual impact of the Reykjavik Energy Group’s developing and operating areas. This is done in collaboration with the licensing authorities and in accordance with the objectives of the Group. Some seven hectares of land were reclaimed with local vegetation in parallel with new constructions in 2017. 

The environmental and land reclamation director of ON Power, one of Reykjavik Energy’s subsidiary, won the Ölfuss 2017 Environmental Award for her pioneering work in land reclamation in Hellisheidi. 

The Hengill area is a diversified recreation area, but walking paths have significantly deteriorated as a result of the increased traffic of hikers, for example, Ölkelduháls, Sleggjubeinsskard, Skeggjadalur and east of Tjarnahnjúkur, as well as Álftatjörn. 

The Reykjavik Energy Group procures a great deal of goods and services, particularly when it comes to piping materials and electrical equipment. Procurement requirements are evaluated and efforts are made to utilise materials that have been purchased or are in stock or to sell them off. There was a good usage of older inventories in 2017 and the stock position decreased by 12% between years. 

Eco-friendly labels are favoured in the procurement of operational goods, such as paper and detergents, for example. In 2017, some 50% of the procurement of photo-copying paper, envelopes, printed material, detergents, and stationery and printing cartridges carried eco-friendly labels. Printing and photocopying is controlled and has contracted by 22% since 2015, see appendix. 

The Reykjavik Energy Group has not screened its suppliers according to environmental indicators. The companies do not have any assessments of the potential or real risks posed by the negative environmental impact of their supply chain or responses to those impacts.

The principal hazardous substances used by the Reykjavik Energy Group are asbestos, the base material used in insulation foam, chlorine, acids and bases, welding gases, geothermal gases, oil and solvents. In 2017, hazardous substances were used considerably, as in previous years. The improvements that have been undertaken regarding the storage, sorting and disposal of hazardous substances have increased the staff’s awareness of the importance of these issues. 

In the spring of 2017, workshops on hazardous substances were held for the staff of Veitur Utilities, one of Reykjavik Energy’s subsidiaries, who work with these substances. The Reykjavik Energy Group does not emit any ozone-depleting substances in its activities. The transport of various hazardous substances is covered in the appendix.

An environmental incident occurred at the Andakílsá Hydropower Station when a large amount of silt from the intake reservoir of the station was carried into the river, see more detailed account of the environmental incident in this Annual Report. A minor oil leak accident occurred in a water protected area by Raudsgil in Borgarfjördur, where a clean-up was required. In 2017, some 600 notifications were received from customers concerning environmental issues and 560 of them concerned conduct, 13 concerned hydrogen sulphide emissions, 8 concerned the discharge of wastewater from the wastewater system into the sea, 6 regarded the environmental accident in  Andakílsá, one regarded noise and one regarded the quality of the potable water. 

In 2017, some 60 notifications regarding environmental issues were received from the staff of Reykjavik Energy Group and most of them concerned conduct, i.e. over 40. All of the notifications were examined and responses are discussed in the appendix. The appendix also examines notifications to licensing authorities and their reasons.