Study visit: Iceland – Blue Economy & Greenhouse Innovation
In September 2025, Arctic Food Arena visited Iceland together with partners CHARM-fabriken and BD Fisk.
The program featured guided tours of The Iceland Ocean Cluster (Hús sjávarklasansand) in Reykjavik the greenhouse pioneer Fridheimar (Friðheimar) in Flúðir – two strong examples of how Iceland creates value from local resources through collaboration, innovation, and sustainable business models.
Photo: From left Oliver Ottvall, Project Lead Arctic Food Arena, Veronica Apelqvist, BD Fisk AB, and Maja Berggren, CHARM-fabriken.
What is The Iceland Ocean Cluster?
The Iceland Ocean Cluster
Founded in 2011 by Þór Sigfússon, The Iceland Ocean Cluster began as a research project on how to better utilize waste from the fishing industry.
Today, it has grown into both a physical hub in Reykjavik and an international network for the blue economy, where entrepreneurs co-locate, share knowledge, and develop new value chains that turn underutilized resources into high-value products.
What is Fridheimar?
Fridheimar
Fridheimar, a family-run, high-tech greenhouse powered by geothermal energy and glacier water. Operating a 10,000 m² greenhouse and restaurant, Friðheimar supplies about 40% of Iceland’s tomato market.
Their business combines food production with agritourism and product development, making them one of Iceland’s most renowned food destinations. In addition to fresh produce, they create a wide range of tomato-based products such as sauces, soups, jams, and even tomato-infused beverages, showing how diversification adds value and resilience to their business model.
What’s happening on the ground?
At The Iceland Ocean Cluster
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Resource utilization from fisheries has risen from around 50% to more than 95%.
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Under one roof, entrepreneurs create new products from fisheries ranging from stocks, snacks, and beverages to collagen, cosmetics, medical applications, and design items.
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Open spaces and informal exchanges encourage collaboration, reduce waste, and enable scaling solutions that would be difficult to achieve alone.
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The Iceland Ocean Cluster’s influence now extends internationally, with ongoing projects in the U.S., Australia, Denmark, Sweden, Namibia, Scotland, and Korea.
At Fridheimar
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The greenhouse produces about 800 tonnes of tomatoes per year and employs around 25 people who are maintaining and harvesting the tomatoes.
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Their portfolio includes several tomato varieties, cucumbers, herbs, strawberries, flowers, and processed products such as soups, jams, spices, and even tomato-infused beer.
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Agritourism is central to their model, with visitors dining in the greenhouse restaurant and experiencing production first-hand.
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Geothermal heat and clean water enable year-round, pesticide-free cultivation with a low environmental footprint.
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Vertical growing systems, precise nutrient delivery, and integrated pest management further increase efficiency and quality.
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A diversified business model: fresh produce, processed foods, and visitor experiences creates resilience and broadens income streams.
What’s next?
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The Iceland Ocean Cluster will continue to grow as a platform for companies seeking to maximize the value of aquatic resources. The next step is developing even more high-quality products from side streams, keeping food at the core while adding value through complementary health, medical, and design innovations.
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Fridheimar plans to expand with additional greenhouses and an extended product range. Their future strategy combines fresh produce, processed tomato-based foods, and tourism, reinforcing their unique position in Iceland’s food sector.
Food remains at the core, but diversification, resource efficiency, renewable energy, and collaboration are crucial enablers for resilient business models.
Key insights:
Collaboration drives innovation: Shared spaces and open exchange lower barriers for new business opportunities.
Food remains central: Both The Iceland Ocean Cluster and Fridheimar place food at the heart of their models, while complementary products and services strengthen resilience.
Resource efficiency is key: Making the most of available resources—whether fish or geothermal heat—reduces waste and increases value.
Diversification creates stability: Combining food production with tourism or new product categories helps businesses manage risks and ensure long-term growth.
Renewable energy enables competitiveness: Affordable geothermal power makes Icelandic food production both sustainable and viable year-round.
Economy of scale matters: Shared infrastructure and aggregation are critical for SMEs in both the blue economy and controlled-environment horticulture.
Regional relevance: Northern Sweden can adapt Icelandic models by mapping side streams, developing high-value products, and fostering cross-sector collaboration, supported by local energy and logistics conditions.
Beyond the case:
This study visit was part of Arctic Food Arena’s mission to strengthen circular and sustainable food production in northern Sweden. By meeting The Iceland Ocean Cluster and Fridheimar, we explored how local resources can be turned into value through collaboration, innovation, and smart business models.
As a testbed, Arctic Food Arena connects companies, researchers, and public actors. The visit highlighted the value of strong networks and cross-sector connections in driving new collaborations and circular solutions.
