Manitoba Invests $4 Million in First Large-Scale Geothermal District Manitoba is moving geothermal energy from individual buildings toward large-scale community heating and cooling, with the provincial government committing up to $4 million to a planned geothermal district at the University of Manitoba's Fort Garry campus in Winnipeg. The project, known as Southwood Circle , is planned as an approximately 80-acre mixed-use development that could eventually include more than 1,000 homes alongside office, commercial, retail and hospitality space. According to the Manitoba government, the geothermal system is expected to provide heating and cooling for at least 1,000 new homes by 2028 , making it the province's first large-scale geothermal district energy system. The announcement forms part of Manitoba's new Net Zero Action Plan , released on September 9, 2026. The plan sets out 90 actions intended to guide the province toward its stated net-zero emissions objective by 20...
HS Orka Launches Second Phase of Krýsuvík Geothermal Drilling Project in Iceland (2026 Energy Expansion Update)
Second Phase of Exploration Drilling Begins in the Krýsuvík Area
By: Robert Buluma
May 21, 2026
Construction work has begun on a new drilling pad in the Krýsuvík geothermal area after the municipality of Hafnarfjörður approved permits for two new exploratory wells north of Bleikhóll, near Kleifarvatn Lake.
The first deep exploration well, drilled by HS Orka near Sveifluháls last summer, is already in place, and production testing on that well will begin next week.
The purpose of the exploration program is to confirm the geothermal resource potential of the Krýsuvík area for:
- Hot water production for Hafnarfjörður and the Reykjavík capital region
- Electricity generation for Iceland’s national grid
A future geothermal power plant in the area is considered strategically important for strengthening energy security in Iceland’s most populated regions.
Two Wells From One Drilling Pad
Earthworks have started on a drilling platform north of Bleikhóll, from which two new exploratory wells will be drilled during the summer and autumn.
Special emphasis has been placed on designing the drilling site to blend more naturally with the surrounding landscape. Most excavation and material extraction will occur directly on the site, using local material for construction of the drilling pad.
The companies involved include:
- Ellert Skúlason ehf. for earthworks
- Strendingur ehf. for engineering supervision
- Jarðboranir for drilling operations
Drilling is expected to begin around mid-summer.
By drilling two wells from a single pad using directional drilling technology — similar to operations at Sveifluháls — HS Orka can investigate a much larger underground area while minimizing environmental disturbance compared to using two separate drilling pads.
Flow Testing of the First Well About to Begin
At the same time, flow testing of the first well drilled near Sveifluháls last summer will begin next week.
The well has been in a heating phase since drilling was completed. During testing, the well will be opened and allowed to “blow,” meaning engineers will measure:
- Steam and fluid output
- Pressure levels
- Overall production capacity
The well is connected to specialized discharge equipment that directs steam and hot water away from the site during testing.
Chemical samples will also be collected to better understand the geothermal reservoir and fluid chemistry.
The testing period could last up to eight weeks and will inevitably produce some noise, especially near the well, although mitigation measures are being implemented. Steam plumes from the well are also expected to be visible from surrounding areas.
Only after testing this well — and the two additional planned exploration wells — will HS Orka be able to fully evaluate the commercial potential of the Krýsuvík geothermal resource.
Part of Iceland’s Energy Security Strategy
The drilling campaign aims to confirm the long-discussed geothermal potential of the Krýsuvík region, where geothermal investigations date back centuries.
The first recorded scientific studies in the area were conducted in 1756, focusing on hot springs and mud pots in Krýsuvík, making them among Iceland’s earliest geological investigations.
Most of the area is classified within Iceland’s official utilization category under the national framework plan, and the Icelandic government has emphasized the importance of fully assessing the region’s geothermal potential.
Following severe storms in December 2019, government working groups identified Krýsuvík as a strategically important area for securing district heating supplies for both the capital region and the Reykjanes Peninsula.
Government plans for future energy security specifically call for:
“An investigation into a shared geothermal heating station in Krýsuvík for the Suðurnes and capital regions, under the principles of public interest, national security, and prioritization of geothermal heating production.”
More detailed information about HS Orka’s geothermal exploration activities in Krýsuvík is available through HS Orka’s official website.
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