Reykjavik, January 26, 2026
Carbon Iceland has signed an agreement to secure land for a large-scale CO₂ capture and eMethanol production facility at Grundartangi Eco-Industrial Park in Southwest Iceland, close to Reykjavik area. The agreement was signed on 26 January 2026 by Hal Oskarsson, CEO of Carbon Iceland, and Gunnar Tryggvason, CEO of Faxaflóahafnir.
The agreement covers more than 25 hectares of land and represents an important milestone in the development of Carbon Iceland’s industrial project at Grundartangi. Securing land at this stage is a key step in preparing for future project phases, including engineering, permitting, and project execution.
Grundartangi Eco-Industrial Park is one of Iceland’s most important industrial hubs, with strong infrastructure, access to renewable energy, and close proximity to major industrial emitters. The location offers favourable conditions for integrating carbon capture with renewable fuel production, aligning well with Carbon Iceland’s strategy of developing scalable, industrial solutions for CO₂ utilisation.
The planned facility will capture CO₂ emissions from nearby industrial sources and convert them into renewable eMethanol, supporting decarbonisation across sectors such as maritime transport, aviation, and the chemical industry. The project is part of Carbon Iceland’s broader ambition to enable commercially viable eFuel production in Iceland and internationally.
“This agreement is a critical step forward for the project,” said Hal Oskarsson, CEO of Carbon Iceland. “Grundartangi offers a unique combination of industrial synergies and renewable energy access, making it an ideal location for large-scale carbon capture and eMethanol production.”
Grundartangi is particularly well suited for this type of industrial development due to its existing infrastructure. The area hosts a large deep-water harbour with sufficient draught to accommodate the largest cargo vessels and tankers, enabling efficient import and export operations. In addition, Grundartangi benefits from robust electricity infrastructure based on renewable energy, as well as excellent road connections. Its proximity to Reykjavík further strengthens the location’s attractiveness, providing access to skilled labour, services, and logistics within a short distance of the capital.
A short video of the Grundartangi area:
https://vimeo.com/921958535?fl=pl&fe=cm
Further updates on project development will be shared as the work progresses.
In the above picture: Hal Oskarsson, CEO of Carbon Iceland and Gunnar Tryggvason, CEO of Faxaflóahafnir