Reported locally, the geothermal power plant of HS Orka at Svartsengi in Iceland will see the construction of a production facility for methanol as transportation fuel. The company Carbon Recycling International (CRI) recently signed a cooperation agreement with HS Orka hf (the power generation company derived from Hitaveita Sudurnesja) which operates the plant at Svartsengi in proximity to the Blue Lagoon geothermal spa.

The plant will be the first of its kind worldwide, and will produce methanol from the CO2 emissions of the power plant. According to Andri Ottesen, the operation manager of CRI, the plant will be capable to produce around 4.2 million liters of methanol per year, which will be blended with with gasoline for cars and other vehicles.

Production is expected to begin in the later part of 2010 and derive around 12,500 litres of fuel from 18 tonnes of CO2. The aim is to utilize CO2 emissions and derive a source for fuel for transportation vehicles without having to change current car technology. The plans see around 400 jobs being created until 2015 with this new and exiting venture.

Source: Icelandic Morgunbladid