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UK and Iceland sign volcanic energy agreement

The UK and Iceland this week signed an agreement that could pave the way for geothermal power from Iceland’s volcanoes to supply electricity to the UK.

The Memorandum of Understanding, signed by energy minister Charles Hendry and his Icelandic counterpart Oddný Harðardóttir, aims strengthen the two countries’ relationship on energy issues.

“Today’s agreement will help pave the way for a closer relationship with Iceland, which I hope can yield significant benefits for the UK, including the development of geothermal power, greater use of interconnectors to transport energy under the sea, and developing oil and gas resources,” said Hendry.

“This sort of approach can both enhance our energy security and deliver low carbon electricity in an affordable way.”

The two countries pledged to: Exchange information on the development of the deep geothermal sector in the UK, including in the supply of heat to district heating networks; Explore the possibility of developing electricity interconnection between Iceland and the UK, including relevant legal and regulatory issues; Work with their respective ministries for international development on renewable energy projects in developing countries with a special focus on East Africa; and Exchange information regarding the development of oil and gas industries, including offshore drilling.

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