Over the past two to five years, Iceland has seen a surge in construction activity spanning multiple industries, from pioneering land-based salmon farming facilities to geothermal power plant expansions and significant public infrastructure works. Liebherr has played a pivotal role in bringing these ambitious developments to life, demonstrating both versatility and resilience in some of Europe’s most demanding environments.
First Water: A landmark in sustainable aquaculture
One of the most ambitious construction endeavours currently underway in Iceland is the First Water land-based salmon farming facility in Þorlákshöfn, on the country’s south coast. First Water’s facility is being developed in six phases, with each phase designed to deliver approximately 10,000 tons of sustainable Atlantic salmon annually, ultimately targeting a total capacity of around 60,000 tons per year by full build-out.
At this multifaceted construction site, a total of seven Liebherr cranes are in operation. Two 270 EC-B, two 81K.1, two 53K, and one 125K handle a variety of lifting tasks associated with assembling the facility’s extensive tank infrastructure and ancillary buildings. The cranes’ performance has proved especially valuable in the coastal, wind-exposed environment, which is characteristic for Iceland’s south coast, where strong saline winds and changing weather patterns impose additional constraints on construction operations.
The facility uses Iceland’s plentiful geothermal and hydroelectric energy to run its operations, control water temperature, and operate sustainably. It has already started shipping salmon to international markets. Liebherr’s reliable and robust crane solutions have supported progress through the first development phases, helping to keep the site on schedule as it works toward full operational capability.
New national hospital: Building the future of healthcare
In the centre of Reykjavík, Iceland’s New National Hospital, one of the most complex healthcare projects ever undertaken in the country, utilises a comprehensive fleet of Liebherr cranes to support vertical construction. The project has been underway since June 2021 and remains active as the facility approaches the later stages of development.
A broad range of Liebherr cranes are deployed across the campus, including one 280 EC-H, two 340 EC-B, two 81K.1, one 34K, four 53K, one 172 EC-B, one 132 EC-B, one 71K, one 130 EC-B, and one 150 EC-B. This variety shows how Liebherr’s portfolio can be tailored to the specific scope and phases of a large institutional build, from heavy structural lifts to precise placement of architectural and prefabricates elements. The cranes have been integrated into planning phases in close cooperation with Liebherr Tower Crane Solutions (TCS), ensuring optimal configurations and safe operations throughout.
The National Hospital will include clinical care facilities, research spaces, and supporting infrastructure, consolidating services that were previously dispersed across multiple campuses.
Svartsengi Power Plant: Geothermal expansion in a volcanic landscape
The expansion of the Svartsengi geothermal power plant, represents another strategic infrastructure project in Iceland’s energy sector. Svartsengi is one of the country’s oldest and most important geothermal facilities, providing electricity, district heating, and hot water across the Island.
Construction work for the plant’s extension began in 2023 while nearby volcanic activity including multiple eruptions in the Sundhnúkur area posed geological and logistical challenges. Despite these conditions, the project progressed successfully toward its late 2025 completion, with Liebherr’s 81K.1 tower crane playing a key role in lifting and assembling structural components of the expansion. The crane’s robust design and adaptability ensured dependable performance even as seismic activity and protective earthworks were executed around the plant.
Selfoss town centre: Urban renewal and mixed-use development
In downtown Selfoss, the Midbær Selfoss project is transforming the town’s urban core with a new mixed-use centre featuring retail, dining, and public space. The development, comprising a first phase completed in 2021 and a second underway from 2024 to 2028, is supported by Liebherr cranes including two 81K.1, one 53K, and one L1 32. These cranes have been instrumental in coordinating lifts with minimal laydown area and tight site access, typical of urban redevelopment projects. Selfoss’s evolving skyline reflects Iceland’s broader push toward mixed-use community infrastructure that supports local economic growth and enhances urban amenities.
Iceland’s construction market: Trends and Liebherr’s role
Across Iceland, Liebherr tower cranes are involved in a diverse cross-section, from energy and healthcare to aquaculture and urban renewal. The island’s harsh climate and volcanic environment require equipment that is highly durable, reliable, and built to last. Liebherr’s portfolio, ranging from compact self-erecting L-cranes and K-cranes to powerful EC-B models, has become a backbone of Iceland’s crane operation. A key market trend has been the shift from crane purchase to rental, which has grown since 2017-2018, reflecting both economic conditions and contractor preferences for flexibility and fleet optimisation. This shift has made Liebherr’s rental-ready cranes increasingly attractive.
Local dealer partnerships, most notably with Rüko (operating since 2012), support Liebherr’s presence on the island. With a fleet of approximately 45 tower cranes, Rüko covers more than 46 % of Iceland’s tower crane needs. The strong after sales support positions Liebherr as a leading brand in the region.
Outlook: Continued growth and strategic projects
Looking forward, Iceland’s construction market shows continued momentum across key sectors. Energy infrastructure remains strong, with further geothermal and renewable projects underway, while institutional and urban developments continue to draw on Liebherr’s expertise. The First Water facility’s expansion and Reykjavik’s hospital campus illustrate ongoing demand for complex crane solutions that can operate reliably in extreme environments.
As Iceland continues diversifying its economy, including sustainable food production, energy resilience, and community infrastructure, Liebherr’s comprehensive tower crane portfolio and integrated service capabilities are poised to support these long-term national ambitions.
