Minesto has signed a memorandum of understanding (MOU) with Icelandic ocean energy site developer Haf-Afl to collaborate on tidal energy project development in Iceland. The agreement adds Iceland to Minesto’s list of active target markets and supports the company’s market entry strategy based on partnerships with local site developers and investors.
Haf-Afl brings experience in identifying and assessing Iceland’s tidal resources, as well as knowledge of the local energy market. The collaboration will focus on site identification, feasibility studies, and project development aimed at creating investable tidal energy projects.
“This is a textbook example of a valuable partnership for Minesto in the ongoing work to initiate and accelerate build out of Dragon Farms. Our agenda now is to engage in site identification and feasibility work that leads to investable projects as well as a solid long-term roadmap to add tidal energy to the Icelandic energy mix for the future,” said Johannes Hüffmeier, COO at Minesto.
“The collaboration with Minesto gives us access to a worldleading tidal energy technology highly suitable for the vast Icelandic tidal resource. Over several years, we have invested significant efforts and time into mapping the tidal ocean energy resource and associated factors regarding the energy system. We can therefore move directly into hands-on site development at targeted locations together with Minesto,” added Eyvar Örn Geirsson, Managing Director, Haf-Afl.
Although Iceland has relatively low wholesale electricity prices, production costs remain high in some remote and off-grid areas. Many of these locations also have strong tidal energy resources. According to the companies, future electricity supply is expected to require a broader mix of generation technologies, particularly those that can deliver predictable output without increasing pressure on land-based natural resources.
Minesto and Haf-Afl state that tidal energy could contribute to Iceland’s energy system by improving energy security and resilience, supporting remote communities currently dependent on diesel generation, reducing future capacity constraints, and providing predictable renewable power that complements hydropower and geothermal generation. Additional benefits cited include minimal land use and limited visual impact.
