The first new commercial industrial gas production facility for almost 25 years is set to be commissioned in Iceland.

Danish business, Haldor Topsoe, has signed an agreement with Icelandic geothermal power company, HS Orka hf, to deliver a plant to capture carbon dioxide (CO2) from geothermal heat sources.

The planned facility will process around 10% of the total off-gas stream from the power plant – gasworld Business Intelligence calculates that this should see around 16 tonnes per day (tpd) of commercial grade CO2 being made available to customers, once the plant is fully on-stream.

Since 2013, the commercial industrial gas market has been solely run by AGA, the regional subsidiary of the Linde Group. The Scandinavian producer and distributor, Strandmollen, was briefly active in the market, but this was put to rest when AGA acquired its operations in 2013. The acquisition was investigated by the Icelandic Competition Authority, but as no other industrial gas company operates on the island, AGA was granted permission to finalise the deal.

Oxygen and nitrogen are already produced in Iceland, solely by AGA’s 25 tpd ASU in Reykjavik – the company did also operate small CO2 and acetylene plants, but these have since been decommissioned. Argon and specialty gases are currently imported from Norway and Denmark.

Greenhouse CO2 oxygen green

Strong growth has been witnessed in the country’s gases market, with the only exception coming during the worst years of the financial crisis. Short-term future growth should be facilitated by an increase in demand, specifically for oxygen and CO2 – plans for new large-scale fish farms and commercial greenhouses are in the pipeline, and will act as the largest consumer of these gases.

European Intelligence Focus

In the run up to the European Industrial Gas Conference 2016, gasworld Business Intelligence is refreshing its country analysis for all industrial gas markets across the continent. If your company has a specific interest in any of the industrial gas markets in Europe, please contact intelligence@gasworld.com or call +44 1872 225031, to find out more.