Bakki Industrial Park
Bakki's value proposition
Bakki Industrial Park delivers a compelling value proposition built on a unique combination of strategic, environmental, and community‑driven advantages:
Scalable & renewable energy
Scalable renewable energy, enabling low‑carbon operations today with the capacity to expand sustainably in the future.
Natural resources
Rich natural resources, including reliable access to both hot and cold water suitable for a wide range of industrial applications.
Pre-zoned
A pre‑zoned industrial area, streamlining planning processes and significantly reducing time‑to‑market for new projects.
Deep-sea port
A deep‑sea port with strong logistical links to the industrial site, strategically positioned in North Iceland to benefit from emerging Arctic shipping routes.
Community support
A supportive, opportunity‑driven community with prior industrial experience and a proactive approach to welcoming new investment.
Skilled workforce
Access to a skilled regional workforce, providing competence and stability for companies seeking long‑term operational success.
Good work-life balance
A close-knit community environment, fostering collaboration, loyalty and shared growth.
Workforce retention
High employee retention rates, offering employers workforce stability and reduced recruitment and training costs.
In Bakki industrial park companies have a framework to set up their industries with access to renewable energy, other natural raw materials and important infrastructure, helping them to build a long term sustainable future.
Þeistareykir power station (Picture/Landsvirkjun)
Norðurþing
The site in Bakki industrial park is owned by the municipality of Norðurþing.
The mission for Bakki industrial park is to lead the economic long term development of Norðurþing municipality by creating jobs, growing income and enhancing quality of life.
Based on that the municipalities is interested to attract businesses that:
- Have economic significance for the community of Norðurþing and the municipality itself
- Create diverse job opportunities
- Gain a competitive advantage from being located at Bakki and take a long‑term perspective
- Have a positive impact on infrastructure development and other economic activity within the municipality
- Are interested in taking an active part in the community and streangthen its identy and assets
- Prioritize sustainability/ESG in their operations and are willing to explore circular‑economy resource flows with other companies in the industrial area
Ownership & mission
For whom?
The Bakki Industrial Park in North Iceland is a forward‑thinking eco‑industrial area designed for companies that want to grow sustainably while benefiting from world‑class renewable energy infrastructure. Located just 2 km north of Húsavík, Bakki offers a unique combination of clean energy, strong logistics, and a circular‑economy approach that makes it ideal for a wide range of industries.
Energy intensive industries
Bakki is especially well‑suited for companies that rely on high and stable electricity use. With direct access to geothermal and hydropower from nearby stations such as Þeistareykir, Krafla, and Laxárvirkjun, businesses can enjoy reliable, low‑carbon energy at competitive rates.
Sustainability Focused and Circular‑Economy Companies
Bakki is built on the principles of industrial symbiosis, where companies cooperate to share resources and reduce waste. This makes it an excellent home for businesses committed to:
- Sustainable production
- Efficient resource use
- Lower environmental impact
- Green innovation
The park’s design encourages collaboration between tenants to maximize the use of energy, water, and byproducts—key features of a true circular‑economy environment.
Industries Requiring Strong Infrastructure and Logistics
A dedicated industrial road connecting the site directly to Húsavík Harbour, Bakki provides efficient transport solutions for heavy goods and industrial materials. The area spans roughly 200 hectares, zoned specifically for industrial development, and offers:
- Robust connections to the national power grid
- Abundant freshwater resources
- Purpose‑built transport infrastructure
Technology and Innovation Companies
Bakki is emerging as an attractive location for high‑tech industries. The cool Icelandic climate, stable geothermal energy, and potential for reusing excess heat create optimal conditions for data centers and other technology‑driven operations.
Business in iceland
Why Iceland is an exceptional location for business
Iceland offers a uniquely strategic, stable, and opportunity‑rich environment for companies seeking a strong international base.
A Strategic Bridge Between Continents
Iceland’s geographic position midway between Europe and the United States makes it a natural hub for transatlantic business, trade, and logistics. Its location is repeatedly recognized as a key advantage for companies operating across both markets.
A Fast‑Paced, Focused Business Environment
With a highly educated population, strong connectivity, and a competitive operating environment, Iceland provides a business climate that is efficient, streamlined, and oriented toward innovation. Companies benefit from low corporate taxes, competitive energy costs, and a stable regulatory framework, which position Iceland among the most business‑friendly environments in Europe.
Exceptional Quality of Life
Iceland consistently ranks among the world’s top countries for quality of life, with strong social systems, environmental cleanliness, personal safety, and a culture that values balance and well‑being. This makes Iceland not only an attractive place to work, but also a compelling destination for international talent and long‑term staff retention.
PCC BakkiSilicon hf. is the flagship company of the Bakki Industrial Park and one of the most advanced silicon metal production facilities in the world. The plant represents a major industrial investment in North Iceland and plays a central role in the region’s economic landscape.
PCC BakkiSilicon operates an ultra‑modern silicon metal plant in Húsavík, commissioned in 2018. The facility was designed to be among the world’s most environmentally compatible silicon metal operations. With two high‑tech electric arc furnaces and cutting‑edge filtration systems, the plant achieves exceptionally low emissions by removing nearly all dust produced during smelting.
One of PCC BakkiSilicon’s greatest advantages is access to Iceland’s abundant geothermal and hydropower resources. The plant is powered primarily by the Þeistareykir geothermal station, supported by nearby energy assets including the Krafla geothermal field and the Laxárvirkjun hydropower plant. This renewable energy supply makes PCC BakkiSilicon one of the lowest‑carbon producers of silicon metal globally.
Despite its technological strengths, PCC BakkiSilicon has faced challenges due to fluctuations in global silicon metal markets. International competition and tariff issues have periodically affected operations, leading to temporary shutdowns and layoffs in recent years. These events have had notable economic impacts on the region, given the company’s importance to local employment and revenue.
Bakki industrial park