Swedish tidal energy developer makes move into Iceland

February 3, 2026, by Nadja Skopljak

Swedish tidal energy developer Minesto has signed a memorandum of understanding (MoU) with Haf-Afl, an Iceland-based ocean energy site developer specializing in the identification, assessment and development of marine energy projects, to pursue entry into the Icelandic market.

Minesto’s Dragon Class tidal power plant (Courtesy of Minesto)

”This is a textbook example of a valuable partnership for Minesto in the ongoing work to initiate and accelerate build out of Dragon Farms. Our agenda now is to engage in site identification and feasibility work that leads to investable projects as well as a solid long-term roadmap to add tidal energy to the Icelandic energy mix for the future,” said Johannes Hüffmeier, COO at Minesto.

The basis for the collaboration is said to reflect a shared view that the value of tidal energy in Iceland includes enhancing energy security and system resilience, supporting remote or off-grid locations currently reliant on diesel generation, reducing future capacity bottlenecks as demand grows, providing predictable, renewable power that complements hydropower and geothermal generation, as well as minimal land use and visual impact.

According to Minesto, Haf-Afl has a solid background in the identification and assessment of the Icelandic tidal resource in combination with in-depth understanding of the local energy market, with a focus on early-stage site development, feasibility studies, and project structuring.

”The collaboration with Minesto gives us access to a worldleading tidal energy technology highly suitable for the vast Icelandic tidal resource. Over several years, we have invested significant efforts and time into mapping the tidal ocean energy resource and associated factors regarding the energy system. We can therefore move directly into hands-on site development at targeted locations together with Minesto,” said Eyvar Örn Geirsson, Managing Director of Haf-Afl.

A couple of months ago, Minesto participated in a high-level delegation visit to South Korea, aiming to explore new partnerships and strengthen bilateral collaboration in the green transition in a country the company describes as highly attractive due to its “extensive tidal and ocean current resources”.

The company reported at the end of January that it had secured grant funding from the Swedish Energy Agency (SEA) that will be used to accelerate its market development in Taiwan.