Skip to content
Thursday, 29 October 2026 Icelandic stories. Global audience.
Business & Politics

Fertilizer and biogas plant planned for Þorlákshöfn enters assessment stage

The proposed Terraforming LIFE factory in southern Iceland is set for environmental review, a step that will assess its potential effects on the local area. The project includes a research lab and plans to pioneer new fertilizer production methods in Iceland.

Fertilizer and biogas plant Terraforming LIFE planned for Þorlákshöfn
Image: Steinninn / Wikimedia Commons (CC BY 4.0) · licence, original (resized) Illustrative image.

A new fertilizer and biogas factory, Terraforming LIFE, is planned for Þorlákshöfn on Iceland’s southern coast, according to reporting from Bændablaðið.

The project will now undergo an environmental impact assessment as part of its development process. Environmental assessments are required in Iceland for major industrial projects, ensuring their effect on the local area is thoroughly considered.

A laboratory dedicated to biogas research has already been established for Terraforming LIFE. The project aims to develop a new method of fertilizer production in Iceland, which could mark a significant shift for the country’s agricultural sector.

Why it matters

Þorlákshöfn is a town in the Municipality of Ölfus, known for its harbour, the only one on Iceland’s southern coast between Grindavík and Höfn. The port provides direct weekly cargo links to Rotterdam and Hirtshals, and the town also serves as a ferry departure point for the Vestmannaeyjar archipelago.

Sources

Image: Steinninn / Wikimedia Commons (CC BY 4.0) · licence, original (resized) Illustrative image.