Top 10 investable projects: K64 Circular Industries, Iceland

Project overview

K64 Circular Industries is a planned 300 ha eco industrial park strategically located near Keflavík International Airport (KEF) and the deep-sea port of Helguvík.

It is designed to foster sustainable and circular industries, leveraging Iceland’s renewable energy resources, robust infrastructure, and strong logistics connections between Europe and North America.

K64CI is a key component of the K64 Masterplan, a regional development strategy led by Kadeco in collaboration with the Icelandic state, KEF airport operator Isavia, and local municipalities. The development promotes industrial innovation, circular economies, and sustainable economic growth.

The opportunity

K64CI offers strategically located plots for industrial development, with a focus on circular economy principles. The park is divided into six dedicated zones, including clean energy production, circular waste management, an innovation hub, a clean construction cluster, food and bioindustries, and port logistics.

Kadeco provides a streamlined entry process for international and Icelandic businesses seeking to establish operations in Iceland. Investors can lease state-owned land for up to 50 years, benefiting from a stable regulatory environment, proximity to logistics hubs, and access to Iceland’s competitive energy market.

Funding model

Kadeco is not seeking co-investment, but is facilitating land development and site selection for businesses looking to establish operations.

The financials

Kadeco is a government-owned development company that enables businesses to invest
and operate within the K64CI park. As a land developer, Kadeco does not provide direct funding or financial incentives. Instead, it assists companies in navigating Iceland’s regulatory, financial, and permitting landscape.

Land leases are available for long-term agreements, with annual rent based on assessed land value or indexed rates. Specific costs depend on the selected plot and industry requirements.

Project sponsor

K64CI is part of the K64 Masterplan, developed and overseen by Kadeco, a government-owned company.

The project is supported by national and municipal authorities, including representatives from Reykjanesbær, Suðurnesjabær, and Isavia.

Significance

K64CI contributes to Iceland’s national economic strategy by promoting industrial diversification, supporting green energy initiatives, and creating high-value employment in the Suðurnes region.

The development aligns with Iceland’s sustainability goals, offering a platform for businesses that prioritise circular-economy models and low-carbon operations.

The pitch

K64CI presents a rare opportunity for industrial businesses to establish themselves in a strategically located, sustainability-driven ecosystem with access to:

• Prime logistics – Direct connections via KEF airport, Helguvík deep-sea port, and the capital region.
• Renewable energy – Access to Iceland’s reliable and competitively priced green energy.
• Business-friendly environment – Stable government support, a skilled workforce, and a pro-innovation regulatory framework.
• Scalability and customisation – Flexible land lease options within a purpose-built industrial ecosystem.

With Kadeco as a trusted partner, companies can efficiently establish and expand operations in one of Iceland’s most promising industrial developments.