Alternative Fuels

In spite of the widespread use of renewables for electricity and heating, Iceland is still dependent on fossil fuels when it comes to transportation and fishing. Those two categories represent almost 90% of the total fuel use and about a third of the coutnry's total CO₂ emissions. Iceland's production of alternative fuels is expected to increase over the long term. Iceland is self-sufficient regarding electricity and heating, and becoming self-sufficient regarding fuel has economic as well as environmental benefits..

All fossil fuels are imported, and the price tag is about one tenth of the cost of Iceland's entire imports. Finding alternatives to fossil fuels should therefore be a priority, especially those alternative fuels that can be produced locally.

Electricity based alternatives, such as battery vehicles, hydrogen and designer fuels are obvious candidates for Iceland, given the country's abundant renewable energy resources. However, biofuels shouldn't be overlooked, in particular those that can be produced by utilizing waste products.

The Icelandic government supports several innovative companies in clean energy, energy efficiency, and clean technology.