Jóhann Páll Jóhannsson, Minister of the Environment, Energy and Climate of Iceland (source: Government of Iceland)
The Government of Iceland will be providing ISK 600 million in grants for projects focused on innovation and technology development in geothermal.
The Government of Iceland, through the Ministry of the Environment, Energy and Climate, has announced the allocation of ISK 600 million (approx. USD 4.76 million) in grants for innovation and technology development in the field of geothermal energy. The funding aims to support Iceland’s competitiveness in the field of geothermal energy utilization by promoting innovation and technology development.
The Climate and Energy Fund is responsible for distributing the grants and the application deadline is 20 December, 2025.
This funding is part of the “Geothermal Leveling the Game initiative” under which ISK 1 billion had previously been allocated for efforts to explore and utilize geothermal energy in the years 2025-2028.
Grants will be awarded to energy companies and projects that focus on the following topics:
New technologies for geothermal power generation including deep drilling, Enhanced Geothermal Systems, new drilling technologies, and low-temperature power generation
Geothermal energy multiplexing through new production processes or forms of use, with special consideration for projects that have not previously received support from public funds
Utilization of geothermal energy for heating employing new methods including heat pumps, projects for increased efficiency, and development that reduces electric heating costs.
The maximum grant rate and grant amount can amount to a maximum of one third of the total investment cost (excluding VAT).
“We have already allocated a billion to explore and exploit geothermal energy in challenging areas, and the projects are moving forward rapidly. But now the next phase of the Geothermal Levels the Game initiative is beginning, and then we will think bigger and harness geothermal energy not only as a tool for equalizing living standards, but also as a driving force for value creation and economic development,” said Jóhann Páll Jóhannsson, Minister of the Environment, Energy and Climate. “The power is present in the country’s rural areas, and this additional 600 million will enable us to harness it better and faster.”
Source: Government of Iceland