HD has completed the construction of a new pilot plant for the Canadian technology company. Syntholene Energy in Húsavík, where a new generation of technology is being developed for the production of hydrogen and carbon-neutral rocket fuel using geothermal energy.
HD was selected as the main contractor for the project and was responsible for the overall coordination of works, project management, communication with subcontractors and authorities, health and safety, and the preparation for the commissioning of the station.
The project involved the installation of specialised experimental equipment that combines a geothermal system, a heat exchanger, high-temperature electrolysis and hydrogen technology into an integrated solution. The aim of the station is to verify whether geothermal energy can be used to reduce the energy demand and production cost of hydrogen, and thereby of carbon-neutral rocket fuel.
The station's construction took only 69 days from the issuance of the building permit to commissioning, completing the project around six months ahead of the original schedule. The station is now operational, and in the coming months, extensive testing will be carried out to confirm the technical and financial viability of the solution.
„We are extremely proud to have been chosen to collaborate on this ambitious project, and just as proud to see how well and quickly it went,“ says Árni Rafn Gíslason, CEO of HD.
„The project required close collaboration between experts from many disciplines and extensive coordination between designers, suppliers, contractors and the government. This utilises the experience HD has built up in complex industrial and energy projects, where the demands for safety, quality and speed of execution are high.“
The pilot plant is located at the Húsavík power station, where infrastructure for geothermal energy utilisation already exists. The project aligns well with HD's strengths in industrial services, technological solutions, and the maintenance of critical infrastructure, and supports the company's vision of actively participating in the energy transition and the development of new industries in Iceland.
„Although this is a pilot project, the technology being developed here has the potential to form the basis for the future large-scale production of carbon-neutral fuel. It is gratifying to see Icelandic expertise and experience playing a key role in such a project,“ says Árni.
The project also highlights the expertise that has been developed at HD in the fields of the energy industry, technical infrastructure and project management, and demonstrates how Icelandic companies can contribute to the development of new solutions to international energy and climate challenges.
HD representatives at the worksite; Ögri Harðarson, technician and Frederick Karlsson HD's Area Manager in Akureyri, together with Eiríkur Bragason, Project Manager at Syntholene Energy.
From the inauguration of the Syntholene pilot plant, 22 June 2026
Video clipSyntholene Energy pilot plant in Húsavík (2.5 min)
