How geothermal energy transforms strawberry production in Iceland

In a country better known for volcanoes and lava fields than fruit farming — or farming of any kind — an Icelandic startup is proving that geothermal energy could help reshape how and where food is produced. At a greenhouse near Iceland’s famous Blue Lagoon geothermal spa, Ichigo Strawberries is using geothermal power, pure Icelandic water and controlled indoor growing systems to produce premium Japanese strawberries — a crop rarely associated with northern climates.

“Here, it is not so much the sun, but what is underground that drives the possibilities of food production and a circular economy,” said chief operating officer Kenichi Noda, during a visit to his facility as part of Iceland Innovation Week activities.

The company launched in 2023 after Noda spent months searching for a suitable location in Iceland, attracted by the country’s clean water and abundant geothermal energy. Eventually, the team moved into a building that had sat abandoned since 2008, when a systemic financial collapse in Iceland drove the country into a severe recession. As a result, the facility was repurposed into a high-tech indoor strawberry farm powered by geothermal energy from the nearby power plant serving the Blue Lagoon area.

The concept reflects a broader Icelandic approach to industrial clustering around geothermal resources where multiple businesses in a region co-locate to take advantage of underground heat and renewable energy.