FAQ
FAQ
Frequently Asked Questions
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General
Terraforming LIFE is a collaborative innovation project in Iceland that develops solutions to transform organic side streams from aquaculture and livestock farming into valuable products, both biogas and organic fertiliser.
The goal is to create a circular system where nutrients are reused instead of lost, supporting sustainable agriculture, reducing pollution and contributing to Iceland’s green transition.
The project aims to comply with regulations on the management of organic side streams. Land-based fish farms in Iceland are growing rapidly and future projections indicate continued production increases, which require sustainable management of side streams.
By using these side streams to produce biogas and organic fertiliser, greenhouse gas emissions can be reduced, nutrient efficiency improved and Iceland’s energy and climate goals supported. The project enhances both the sustainability of Icelandic land-based fish farms and traditional agriculture.
The benefits of the Terraforming LIFE project are diverse. By creating a circular economy for fish sludge and farm animal manure, the project enables circulation of nutrients, reduces waste disposal, lowers carbon footprint, enhances farmers’ operational security and strengthens Iceland’s food security. The project also fosters cross-sector collaboration and supports innovation and knowledge development.
Terraforming LIFE will create a biogas and fertiliser facility.
A Biogas and Fertiliser Facility processes organic side streams through anaerobic digestion, a process where microorganisms break down organic material without oxygen. In the case of Terraforming LIFE, these side streams consist of fish sludge from land-based fish farms and farm animal manure that would otherwise remain underused. By processing these materials in this way, they become a valuable resource in a circular system where nutrients are reused instead of lost.
Terraforming LIFE is funded through a grant from the European Union’s LIFE programme, which supports projects that promote environmental protection and sustainable development. In addition, participating partners provide financial contributions to the project. The total grant amount is 6.2 million Euros. The partner contributions amounts to 4.2 million Euros. The total estimated cost of the project is 10.4 million Euros.
The project is a collaborative effort between First Water, the Icelandic Farmers’ Association, Orkídea, Ölfus Cluster and SMJ in the Faroe Islands.
Yes, in the Faroe Islands there is a biogas facility that mainly processes mortalities for aquacultural industry, freshwater fish sludge from land-based salmon farming and cow manure. The facility has been in operation since 2020 and has been very well received both by local farmers and aquaculture farmers as well as by the local community in general.
LIFE is the European Union’s environment and climate action program, providing funding for projects that promote environmental protection, sustainability, and climate action. Iceland can participate in LIFE projects through the European Economic Area Agreement.
The project began June 1st, 2023 and was originally planned for four years. At the beginning of 2025, a request for a one-year extension was approved. The project is scheduled to be completed on May 31, 2028.
Materials and Collection
The Biogas and Fertiliser Facility processes organic by-products from land-based aquaculture and conventional agriculture. From aquaculture, it handles fish sludge which contains fish feces and feed residues. Regarding farm animal manure, the most suitable types are still being assessed, but so far the focus has been on pig and horse manure, as well as bone meal, since there is a need for a pathway to process these by-products.
Various options are being considered, such as pig blood and deadfish.
When the project concludes at the end of May 2028, a biogas and fertiliser facility will be operational with a capacity to process 30,170 tonnes of organic waste per year. Over time, the facility’s capacity can be increased to handle up to 100,000 tonnes of organic waste annually.
Production
The production process in Terraforming LIFE involves collecting and mixing organic materials — primarily fish sludge (fish feces and and feed residues) and farm animal manure — in a fermentation tank, where they decompose under anaerobic conditions. During this anaerobic digestion, biogas is produced, which can be used for energy generation, while the remaining nutrient-rich digestate is further processed into organic fertiliser.
Anaerobic digestion is a process in which microorganisms break down organic material without oxygen. This produces biogas, which can be used for energy generation, and liquid digestate, a nutrient-rich product that can be used as organic fertiliser.
All organic material is transported into the facility in closed containers, and all processing takes place indoors using the best available technology to minimize odors. To further reduce odors, powerful filters, ventilation systems and other cleaning equipment are used. Production is continuously monitored to ensure that impacts on the local community are kept to a minimum.
While it is never possible to guarantee that no odor will occur, experience shows that it can be kept to an absolute minimum through the use of best available technology, efficient operational procedures and thorough supervision.
Since 2019, a biogas and fertiliser facility in the Faroe Islands has treated fish sludge and cattle manure, among other materials. The facility is located 1.8 km from residential areas and just 1 km from an event hall with a capacity of 5,000 people.
Emphasis will be placed on tidy surroundings and hygiene. All organic material is processed in closed systems, and no handling or storage takes place outdoors.
Below is a photo from FÖRKA, a biogas facility in The Faroe Islands.
Outputs
The facility produces two main products: biogas and organic fertiliser.
During anaerobic digestion, biogas is generated, collected, purified, and used for electricity and heat production. Additionally, carbon dioxide and methane, which are the main products in biogas, can be separated and utilized individually. Pure methane can e.g. be used as fuel (LNG or CNG), while carbon dioxide can be utilized for multiple purposes.
After anaerobic digestion, a nutrient-rich digestate remains, which is processed into organic fertiliser using production methods and procedures that ensure quality and safety. The fertiliser is nutrient-rich, suitable for agriculture, and serves as a replacement for synthetic fertilisers.
The detailed revenue model of the project is still under development. The goal of Terraforming LIFE is to create a sustainable pathway for by-products from land-based aquaculture, reduce the cost of sludge disposal, and lower the need for imported synthetic fertiliser by offering farmers locally produced organic fertiliser.
For those interested, the biogas plant FÖRKA in the Faroe Islands, owned by Bakkafrost, operates with two main revenue streams. Firstly, Biogas is used in a CHP to produce electricity and heat. Electricity is sold to the national grid while heat is utilized in the local district heating system. Secondly, there is a gate fee for all waste from aquaculture farmers that is being processed at the plant. Faroese farmers supply cow manure free of charge and receive organic fertiliser in return at no cost.
Other
Recycling nutrients is essential for sustainable agriculture. Fish sludge and farm animal manure contain valuable resources such as phosphorus, nitrogen, and potassium, which are essential for plant growth. Phosphorus in particular is a limited resource that is difficult to replace. If these nutrients are lost from the natural cycle—for example, by not returning organic waste to the soil—their value is lost and reliance on imported fertilisers increases. By recycling these nutrients, we improve soil health, reduce environmental impacts, and ensure that these finite resources are available for the future.
The difference lies both in origin and impact on the soil.
Synthetic fertiliser is produced using chemical processes from raw materials such as nitrogen gas, phosphate and potassium minerals. It provides plants with nutrients quickly and in precisely measured proportions, but has little effect on the organic content of the soil. Long-term use can reduce the biological activity in the soil and make it more dependent on imported nutrients.
Organic fertiliser, on the other hand, is made from natural organic material such as animal and fish waste or plant residues. It releases nutrients more slowly, improves the soil with organic matter, and enhances microbial life. In this way, it strengthens the natural nutrient cycle and supports sustainable agriculture.
In short, synthetic fertiliser provides quick nutrition, while organic fertiliser helps build healthy soil for the future.
In 2025, fish sludge is mostly used for land reclamation, but that is not a sustainable solution as production increases. It is roughly estimated that around 2,000 tonnes of fish sludge will be produced by all land-based aquaculture companies in Iceland in 2025. By 2031, the total amount of organic waste from the industry is expected to reach 150,000 tonnes per year. All aquaculture operators are required to retain their fish sludge and therefore, it is important to find a sustainable solution for handling fish sludge.
According to the Icelandic Food and Veterinary Authority, 55,000 tons of synthetic chemically produced fertilizer were imported in 2024.
Sorpa, which manages waste in the Reykjavík capital area, operates the only biogas facility currently operating in Iceland. This facility uses organic waste from households and businesses to produce methane, which is used as green fuel for transportation and in industry for example to toast coffee.
The name may bring science fiction to mind, but its meaning is much more down-to-earth. The word “terra” comes from Latin and means “earth,” while “forming” refers to transformation – turning material from the earth back into the earth. “LIFE” refers to the EU Climate and Environment LIFE Programme, which supports the project.
Food security is about ensuring that people have stable access to sufficient, safe, and nutritious food. It involves reliable production, distribution, and access to food, even in the face of disruptions such as extreme weather, animal diseases, or import restrictions.
Terraforming LIFE contributes to food security by using organic side streams from aquaculture and livestock farming, such as fish sludge and animal manure, to produce organic fertiliser. This fertiliser is rich in essential nutrients like nitrogen (N), phosphorus (P), and potassium (K), which are valuable for growing food crops. By recycling these nutrients instead of letting them go to waste, the project strengthens domestic food production, reduces the need for imported fertiliser, and promotes sustainable agriculture, all of which enhance the resilience of food production in Iceland.
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