Top 10 investable I&L projects: K64, Suðurnes Region, Iceland

Project overview

K64 is Iceland’s largest regional development initiative, covering 6,000 hectares on the Reykjanes Peninsula, next to Keflavík International Airport. As the country’s primary gateway, the site offers connectivity between Europe and North America, through both air and sea, with the deep-sea port of Helguvík nearby.

The masterplan encompasses a wide spectrum of uses – from aviation-related services and logistics to research, education, tourism and new residential districts – but its centrepiece is a next-generation industrial and logistics cluster powered entirely by renewable energy.

The opportunity

At the heart of the development is K64 Circular Industries, a 300-hectare eco-industrial park. Here, investors can establish large-scale logistics, manufacturing and processing facilities while embedding circular economy principles into their operations.

In addition to Circular Industries, opportunities extend across aviation-linked development, clean construction, bio-industries and innovation-led business parks.

With shovel-ready plots, flexible land leasing arrangements and streamlined permitting, K64 provides an accessible platform for international occupiers and investors. Multimodal connections – air freight via Keflavík Airport, sea freight via Helguvík Port and road access to the capital region – make it an ideal location for companies seeking efficient, low-carbon supply chains between Europe and North America.

The financials

The K64 masterplan represents a multi-billion-euro development opportunity over its long-term build-out. Investors can secure land leases of up to 50 years on state-owned plots, with lease rates indexed to land value and tailored to project requirements.

While Kadeco, the master developer, does not provide direct funding, it reduces investment risk by preparing land, delivering infrastructure, and facilitating planning and regulatory approvals.

Project sponsor

The project is led by Kadeco, Iceland’s government-owned master development company, in partnership with national ministries, the municipalities of Reykjanesbær and Suðurnesjabær, and airport operator Isavia. This coalition provides strong political backing, long-term stability, and alignment with Iceland’s national strategies for infrastructure, energy and economic diversification.

Significance

K64 is central to Iceland’s strategy for sustainable growth and regional development. Clustering industry, logistics, education and housing around the country’s primary airport will diversify the national economy beyond tourism and fisheries, create thousands of high-value jobs, and embed circular economy practices into industrial development.

The inclusion of K64 Circular Industries shows how renewable energy, waste-to-resource solutions and sustainable logistics can be integrated into a single industrial ecosystem. More broadly, K64 strengthens Iceland’s role as a transatlantic hub, providing Europe and North America with a low-carbon platform for trade, manufacturing and innovation.

The pitch

K64 is an opportunity to invest in a masterplanned development at the crossroads of Europe and North America. For industrial and logistics occupiers, the K64 Circular Industries park provides an ecosystem for sustainable production and distribution, backed by Iceland’s competitively priced renewable energy.

For investors and partners, K64 combines strategic connectivity, strong political support and long-term economic significance.