Engineering Greenland’s energetic future

By Elías Thorsson November 1, 2024
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Greenland’s energy minister Kalistat Lund speaking at the Arctic Circle conference in Reykjavík, Iceland last month. (Arctic Circle)

“It’s a great responsibility, but also a delightful one,” says Kalistat Lund, Greenland’s Energy Minister, told Arctic Today regarding his pivotal role in the country’s energy transformation. “The product we’re creating is clean, and it benefits Greenland and the world.” 

With Greenland poised to overhaul its energy landscape, Lund is leading an ambitious drive toward renewable energy that could reshape the nation’s future for decades to come. Already, Greenland derives a majority of its energy from hydropower, a figure set to rise as the country intensifies its efforts to reduce its dependence on fossil fuels and achieve a greener future.

“At the moment, about 70% of our energy comes from hydropower,” Lund says. “In the next 5-6 years, we aim to increase that to 90%.”

The shift towards renewable energy began 30 years ago with the construction of a hydropower plant near the capital, Nuuk. Today, the country is expanding its renewable infrastructure, including untapped wind and solar energy potential.

“There is still potential for wind and solar energy, which will certainly be developed in the coming years,” Lund adds.

Data Centers and Investment Opportunities

As Greenland’s renewable energy capacity grows, it opens significant investment opportunities. One of the most promising sectors is data centers. Greenland’s cold climate significantly reduces the energy needed to cool these centers, making the country an attractive option for energy-intensive data operations. 

“Greenland has garnered a lot of interest from companies around the world, especially for hydropower,” he says. “Our location and cold climate are advantageous, particularly for data centers, which need energy for cooling.” 

Hydrogen production is also a key focus. With surplus hydropower, Greenland could become a leader in producing green hydrogen for export, contributing to the decarbonization of industries such as shipping and aviation​. Moreover, Greenland is exploring the possibility of attracting energy-intensive industries like aluminum production, utilizing its clean energy to support industrial processes in a sustainable way.

Managing Growth with Sustainability

While foreign interest in Greenland’s energy resources grows, the government remains focused on ensuring that development benefits the country’s economy and environment. Its small population means that large projects must be carefully balanced to protect social and environmental sustainability.

“It’s important that these projects economically and environmentally benefit Greenland,” Lund says. “With only 57,000 people, large projects must consider social and environmental impacts.”

Currently, only 17% of Greenland’s overall energy consumption comes from renewable sources when factoring in transportation sectors like shipping and aviation, which still rely on fossil fuels. However, Lund remains confident that the country will continue to advance toward greener alternatives​.

A Vision for the Future

Looking ahead, Lund is optimistic about Greenland’s clean energy future and its economic potential. He views renewable energy as central to the country’s development and improving the quality of life for its citizens.

“If our dreams are realized, this clean energy will have a huge significance for Greenland’s future, both for living in the country and economically,” he says.

As the world grapples with climate change, Greenland’s transition to renewable energy serves as a model for sustainable development in the Arctic. Hydropower, wind, and solar energy are not only laying the groundwork for a greener future, but also positioning Greenland as a key player in global clean energy innovation