AGP Executive Report

Geothermal & Energy: A drilling contract has been signed for IDDP-3, a superhot geothermal well in Iceland—another step for the country’s geothermal push. Transport & Infrastructure: In the Westfjords, new bridges at Djúpifjörður and Gufufjörður are under construction and the last unpaved stretch across Dynjandisheiði is being replaced, aiming for safer, more reliable travel (with some locals worried about changing remote sites). Aviation: Icelandair is set to phase out Boeing 757s and 767s earlier than expected, while also flagging a stronger summer despite a recent ISK 4bn quarterly loss. Seismic Watch: An earthquake swarm began on the Reykjanes Ridge, with the largest quake at magnitude 3.4. Tourism & Events: Kerlingarfjöll Ultra returns with 400 runners across 12, 22 and 60 km, sold out and capped to protect the reserve. Food & Retail: Momentum Carnivore Nutrition expands its Icelandic fish chew line with four new SKUs, built on wild-caught fish from Icelandic waters.

Geothermal & Energy: A drilling contract has been signed for IDDP-3, a superhot geothermal well in Iceland, keeping the country’s geothermal push moving. Transport & Infrastructure: Iceland’s southern Westfjords road upgrades are continuing, with new bridges at Djúpifjörður and Gufufjörður and the last gravel stretch across Dynjandisheiði being replaced—safer travel, but some locals worry about losing remoteness. Aviation: Icelandair plans to phase out Boeing 757s and 767s earlier than expected, a fleet shift that could reshape capacity and costs. Housing & Economy: Iceland house price growth is slowing as the rental market expands, while inflation has risen to a four-month high. Education Policy: From 2027–2028, students outside the EEA will pay full tuition fees at Iceland’s public universities, with exemptions for the Faroe Islands, Greenland and Switzerland. Earth & Weather: An earthquake swarm has begun on the Reykjanes Ridge, with the largest quake at magnitude 3.4. Tourism & Events: The Kerlingarfjöll Ultra sells out again with 400 runners across 12, 22 and 60 km.

Geothermal Push: Reykjavik Energy has signed with Iceland Drilling to start work on the IDDP-3 geothermal exploration well later this year at Nesjavellir, advancing Iceland’s deep drilling research plan. Aviation & Jobs: Icelandair plans to phase out Boeing 757s and 767s earlier than expected, while also signaling a stronger summer despite an ISK 4bn quarterly loss. Housing Pressure: Iceland house price growth is slowing as the rental market expands, with more homes closing below ISK 80 million. Education Policy: Iceland will require full tuition fees for most students from outside the EEA starting in 2027–2028, aligning with Nordic practice. Food & Retail: Momentum Carnivore Nutrition expands its Icelandic fish chew range with four new SKUs, built from wild-caught fish processed the same day. Cruise & Shipbuilding: Explora Journeys takes delivery of LNG-capable Explora III, with Iceland and Greenland routes flagged for the maiden season. EU Sanctions: The EU adopted its 21st Russia sanctions package, tightening controls affecting finance, energy, crypto and the military-industrial sector.

Geothermal Drilling Deal: Reykjavik Energy has signed with Iceland Drilling to start the IDDP-3 exploration well later this year at Nesjavellir, pushing forward Iceland’s deep geothermal research and exploitation plans. Higher Education Policy: Iceland will require full tuition fees for most non-EEA students from the 2027–2028 academic year, with universities to set fee levels ahead of December 2026 admissions. Inflation Watch: Iceland’s consumer price inflation edged up to 5.3% year-on-year in July, while producer prices jumped to a four-year high of 19.4% in June, with marine products and metal industry costs accelerating. Cruise & Shipbuilding: Explora Journeys took delivery of LNG-capable Explora III from Fincantieri in Genoa, adding new dining concepts and setting up an inaugural season that includes Iceland and Greenland. Food Industry Buzz: Galaxy launched two new chocolate bar flavours in Iceland—Cinnamon Swirl and Millionaire Crumble—driving local retail attention. Corporate/Finance: Syntholene Energy upsized a private placement to $2.0m, while STONE WALL CAPITAL published an updated regulatory and client onboarding framework.

Geothermal Drilling: Reykjavik Energy has signed with Iceland Drilling to start the IDDP-3 deep geothermal exploration well later this year at Nesjavellir, a major step in Orkuveitan’s deep exploitation plan. Tourism & Transport: Icelandair posted a Q2 loss of ISK 4bn but expects a stronger Q3 on solid bookings; fuel costs remain the key pressure point. Housing Market: Iceland’s home sales are increasingly closing below ISK 80m, with about 60% of transactions in that band, while the rental share of adults keeps rising. Inflation Watch: Statistics Iceland says July CPI rose to 5.3% year-on-year, the highest in four months, with transport and housing/utility costs contributing. Education Policy: Parliament approved legislation requiring full tuition fees for non-EEA students at Iceland’s public universities from 2027–2028, with exemptions for the Faroe Islands, Greenland and Switzerland. Whaling Debate: Hvalur resumed commercial whaling after a two-year pause, despite IUCN-linked animal-rights criticism and calls to cut quotas. Energy Industry: EU carmakers report rising registrations in the first half of 2026, with hybrids leading and EV growth continuing—relevant for Iceland’s EV and charging ecosystem.

Iceland Higher Ed Fees: Parliament has approved a bill ending state funding for most non-EEA students at Iceland’s public universities, with full tuition fees set to start for the 2027–2028 academic year (amounts still to be set; Faroe Islands, Greenland and Switzerland exempt). Housing Market Pressure: New Housing and Construction Authority data says about 60% of Iceland home sales closed below ISK 80m, while only just over 4% topped ISK 170m; renting is rising, especially in Reykjavík. Tourism & Safety: South Iceland police and volunteers helped two tourists who got lost in dense fog on Kristínartindar peaks; the rescue ran from about 1 a.m. to shortly after 4 a.m. Aviation Outlook: Icelandair reported a Q2 loss of ISK 4bn but expects a stronger Q3 on solid bookings, despite unresolved wage talks and higher fuel costs. Energy & Industry Risk: Hvalur hf resumed whaling after a two-year pause, drawing protests and renewed debate over quotas and IUCN-listed species. EU Mobility for EVs: EU car registrations rose 5.7% in H1 2026, with hybrids leading and battery-electric at 20.7%, while Chinese brands gain ground. Travel Fraud Warning: A US tourist reported being steered to a fraudulent phone number after trying to change an Icelandair booking via a link. Renewables Claim: A Solartopia update says Iceland generates 100% equivalent electricity from renewables (as presented by Stanford’s Mark Jacobson).

Housing & Construction: Iceland’s Housing and Construction Authority reports a sharp jump in young renters: 45% of 18–24-year-olds rent now, up from 34% a year earlier, as house-price growth slows and buying stays tough. Energy & Industry: Denmark is drafting measures to curb datacentres blamed for surging industrial electricity demand, after an Audit Office critique of grid expansion plans; the emergency proposal would deprioritise most datacentres for scarce capacity. Aviation & Tourism: Alaska Air Group posted a Q2 net loss of $76m despite revenue up 10%, citing a fuel spike; it also launched new routes including Reykjavík. Travel Safety: A River Forest woman says she lost nearly $4k in a fake airline support scam tied to an Icelandair change attempt. EU Policy: The European Commission cleared the Paramount–Warner Bros. Discovery merger with conditions, focusing on competition in film distribution and audiovisual services. M&A/Services: Private equity-backed Orwins expands in the UK by acquiring Newcastle firm Clarke Mairs. AI Infrastructure: Nordic Investment Bank signed a €22m, four-year loan to Helsinki AI infrastructure firm Verda.

Housing Market Shift: Nearly half of Icelanders aged 18–24 are now renting (45%, up from 34% a year earlier), as slower house-price growth and tougher buying conditions push more young adults out of family homes. AI & Research: Princeton’s Adji Bousso Dieng is tackling “mode collapse” in generative AI, aiming for more reliable “investigative intelligence” for scientific pattern-finding. Energy & Industry: GE Aerospace says it has flown a hybrid-electric Saab 340 above 30,000 feet and completed the first hybrid-electric Atlantic crossing, a step toward megawatt-class propulsion. Mining & Finance: Credit rating agency Morningstar DBRS challenges Greenland’s “mineral treasure chest” narrative, saying proven, economically viable deposits are scarce and strategic value is more about military and trade routes. AI Infrastructure Funding: Nordic Investment Bank backs Helsinki AI infrastructure firm Verda with a €22m, four-year InvestEU-backed loan. Local Business/Construction: Architizer’s A+Awards highlight Iceland-led sustainable adaptive reuse, including a renovation project in Þjórsárdalur Valley.

Tourism Watch: Iceland saw a sharp June dip in US arrivals, down about 21% year-on-year (roughly 20,000 fewer visitors), with industry hoping eclipse timing and fresh marketing can help. Green Energy & Industry Finance: Nordic Investment Bank signed a €22m, 4-year InvestEU-backed loan for Helsinki AI infrastructure firm Verda, backing renewable-powered compute capacity. Mining & Geopolitics: A new Morningstar DBRS commentary argues Greenland’s “mineral treasure chest” narrative outpaces proven, economically viable deposits—while US interest is framed as more strategic than metals-led. Aviation Tech: GE Aerospace flew a hybrid-electric Saab 340 testbed above 30,000ft and across the Atlantic to Farnborough, marking a major step for electrified propulsion. Corporate Governance: Amaroq (Greenland-focused) announced board and chairman transitions ahead of expected London listing admission by late July. Conservation: US oystercatcher numbers are rising thanks to a multi-state restoration effort, including banding and chick monitoring.

Iceland Tourism Watch: US visitor numbers to Iceland fell about 21% in June year-on-year, with around 20,000 fewer arrivals, as travellers may shift trips toward the August solar eclipse and broader US travel demand softens. Greenland Mining Reality Check: A credit rating agency says Greenland’s “mineral treasure chest” image is overstated, arguing there are almost no proven, economically viable deposits—while strategic value to the US is framed more around military and trade routes than metals. Corporate Moves in Mining: Amaroq announced a chairman transition and new independent board appointments ahead of its expected London listing admission no earlier than 31 July 2026. Conservation & Coasts: US oystercatcher numbers are rebounding after near-extinction in New England, with a multi-state, multi-million-dollar banding and restoration effort now tracking recovering chicks. Aviation/Travel Disruption: KLM diverted a Boeing 787-10 to Tenerife for a medical emergency, then resumed to Amsterdam with a delay. Tech & Wellness: Midjourney plans a spa-and-preventative-health concept in San Francisco, including full-body scanning tech, with a flagship opening targeted for end-2027. Space Ambitions (UK): SaxaVord spaceport in Shetland is preparing for orbital launch operations, with multiple rocket firms lining up tests and potential launches.

Tourism & Risk: A new Iceland-set disaster-romance built around volcano science is already stirring debate about how Hollywood could boost (or damage) visitor demand if “Reykjavik is in danger” hits the mainstream. Film & Set-Industry: Christopher Nolan’s The Odyssey is being credited with a major practical-effects push, with Iceland used as a key location (including black-sand “Hades” scenes), while the production’s six-country build underlines how Iceland can plug into global screen production supply chains. Aviation & Iceland Link: GE Aerospace says a hybrid-electric Saab 340 testbed has flown above 30,000 feet without electrical failure, and the aircraft’s Atlantic route included stops such as Nuuk and Reykjavik—another signal of Iceland’s role in high-end flight testing logistics. Housing Market: Iceland’s Housing and Construction Authority reports more young adults are moving into rentals: 29% now rent (up from 28%), with Reykjavík leading the shift. Energy & Industry: EU carbon-market reform proposals aim to slow ETS changes from 2031, while Iceland’s aviation emissions exemption is also in focus—both could shape future costs for Iceland-linked operators. Conservation & Coastal Jobs: Research and banding efforts show oystercatchers are rebounding, supported by a multi-state, multi-million-dollar conservation push that can feed into coastal stewardship and local tourism planning.

Aviation & Energy Tech: GE Aerospace says it has cleared a major barrier for hybrid-electric flight, completing the first high-altitude, high-voltage hybrid-electric test using a modified Saab 340B with a megawatt-class system; the aircraft transited via stops including Nuuk and Reykjavík before reaching Farnborough for display. EU Climate Policy: The European Commission proposes changes to the EU Emissions Trading System from 2031, including longer free allowances tied to investment plans, alongside a new 2040 target for electricity to reach 46% of energy use—sparking debate over whether the system could weaken. Iceland Housing & Labour Markets: Iceland’s Housing and Construction Authority reports more young adults moving into rentals: 29% now rent (up from 28%), with the 18–24 group’s share living with parents falling sharply. Ukraine Power Restoration: International partners delivered 4,466 energy equipment units to Ukraine since the start of 2026, with more generators and transformers expected soon to support regional restoration. Nordic Maritime Security: NATO’s Atlantic maritime task force command rotates to Spain for a year, covering operations across the North Atlantic including routes tied to Greenland, Iceland and the UK. Conservation: A major coastal recovery effort is credited with Oystercatcher numbers rising again, including new banding work at Rhode Island’s Trustom Pond.

Viking Heritage & Tourism: Norway’s Draken Harald Harfagre—the Viking ship featured in Christopher Nolan’s “The Odyssey”—opened for public tours in Oslo, with daily guided visits and an exhibition through July 31, boosting maritime culture tourism. Clean Energy R&D: In Oulu, Finland, universities, industry and researchers are pushing clean hydrogen from lab to industrial use, aiming to reshape heavy industry, transport, agriculture and regional skills. Trade & Compliance: Vietnam’s exports to Nordic markets are rising under EVFTA, but new EU rules on carbon, deforestation, packaging, product safety and digital product info are forcing faster greener production and better traceability. NATO Maritime Security: Spain took command of NATO’s Atlantic maritime task force for a one-year rotation, covering North Atlantic sea lanes from Greenland to Iceland and beyond. Iceland Business Angle: Iceland’s “first billionaire” Thor Björgólfsson has shifted tax residency from Britain to Italy, warning of an “exodus” of wealthy investors. Geothermal Knowledge Transfer: A feature highlights how Iceland’s geothermal success is also about people and know-how—linking Icelandic expertise to global energy innovation.

Ocean Racing: The 2027 McIntyre Ocean Globe Race is recruiting crews for a fully crewed, retro round-the-world challenge of 27,000+ nautical miles, with up to 14 yachts expected at the start and several campaigns already taking applications for full legs or the whole circumnavigation. Trade & Agriculture: Philippines trade chief Cristina Roque says EU and Chile free-trade deals are still on track for conclusion this year and signing in 2027, with the remaining sticking point in EU-agriculture terms. Arctic Tourism & Media: A Norwegian Viking ship featured in Christopher Nolan’s The Odyssey has opened for public tours in Oslo, linking film tourism with hands-on maritime heritage. Iceland Energy & Industry Skills: A piece highlights how Iceland’s geothermal success is tied not just to resources but to the people and workforce that built the expertise—an angle relevant to Iceland’s wider clean-energy industry. EU Aviation Policy: EU backs an extension of Iceland’s aviation emissions exemption, a direct lever for airline costs and connectivity. Local Industry/Jobs: Reports say Iceland’s construction industry is facing a slowdown as unemployment rises. Greenhouse Gas Accounting: A study argues spectator travel is the biggest emissions driver for mega-events like the World Cup, with implications for how Iceland and other small economies think about event sustainability.

Aviation Policy: The European Commission and Iceland have agreed in principle to extend Iceland’s EU ETS aviation emissions exemption for international flights by three years, keeping it in place until 2030—aimed at protecting competition for Keflavík transatlantic routes and supporting sustainable aviation fuel beyond the EEA. Tourism & Connectivity: Air China is preparing direct scheduled flights to Iceland, and the Icelandic Travel Industry Association expects arrivals to spread more evenly across the year and potentially double, with regulators urged to watch compliance by foreign tour operators. Energy & Industry Skills: A new research angle highlights how Iceland’s geothermal success is also an exportable know-how story—linking workforce and innovation ecosystems to global carbon-capture and energy expertise. Film-to-Travel Spillover: “The Odyssey” is already driving “set-jetting” interest, with Iceland among the filming countries—another reminder that screen production can boost demand for travel services. Sports & Youth Pathways: Iceland earned promotion back to Division A in the FIBA U20 EuroBasket 2026 after a comeback win over Sweden, underscoring how development systems translate into results. Business Climate Costs: A study argues mega-events’ biggest emissions come from spectator travel, not venue operations—fueling calls for smarter incentives rather than offsets.

Aviation & Climate Policy: The EU and Iceland have agreed in principle to extend Iceland’s ETS aviation exemption for international flights by three years, keeping Keflavík’s transatlantic competition treatment in place until 2030, with further support for sustainable aviation fuel on routes beyond the EEA. Tourism & Connectivity: Air China is preparing direct scheduled services to Iceland, and the Icelandic Travel Industry Association says year-round flights could boost arrivals and spread demand beyond the summer peak—potentially doubling visitor numbers. Industry & Energy Skills: A new piece spotlights how Iceland’s geothermal success is also a people-and-know-how story, tying expertise and workforce development to long-term innovation. EU Trade & Agriculture Politics: Iceland’s Young Farmers Association has voted to oppose EU accession talks and the August 29 referendum, warning negotiations could chill investment and generational renewal in farming. Tech & Security: Researchers report TuxBot v3 Evolution, an LLM-assisted IoT botnet framework targeting exposed Linux devices and enabling DDoS attacks across many processor types. Media & Production: Glassriver and Germany’s Network Movie are co-developing Áróra, an Iceland-and-London investigative TV drama adapted from Lilja Sigurðardóttir’s crime novels.