Iceland has identified India as a target partner for cooperation spanning geothermal energy development, carbon capture and storage, and green hydrogen — a three-track proposal that signals Reykjavik's intent to export its geothermal and decarbonisation expertise into one of the world's fastest-growing energy markets.

The initiative, reported by Carbon Herald, positions Iceland's established geothermal industry as the anchor of a broader bilateral clean-energy relationship with India, with carbon capture and green hydrogen named as the two additional streams on the table.

What does the partnership cover?

The proposed cooperation rests on three material streams:

• Geothermal energy — the sector where Iceland holds decades of operational experience and which forms the core of its export proposition
• Carbon capture — a technology track Iceland has developed domestically through mineralisation-based CO₂ storage
• Green hydrogen — the third pillar, tied to renewable power generation

For India, geothermal is a nascent segment of the power mix. A partnership with Iceland would give Indian projects access to drilling, reservoir management and plant operation know-how built up over roughly a century of geothermal development in the North Atlantic.

Who is behind the push?

The plan is framed at government level, with Iceland targeting India as a strategic partner rather than a single company-to-company deal. No specific projects, plant capacities or investment figures have been disclosed at this stage, which places the initiative firmly in the announced-project category rather than built capacity — a distinction worth holding as coverage develops.

Iceland's leverage rests on track record. The country runs its electricity and heating systems overwhelmingly on geothermal and hydropower, and its carbon capture sector has moved beyond pilot scale into permanent underground mineral storage — a capability few jurisdictions can claim.

India, meanwhile, has set aggressive renewable deployment targets and is building out a national green hydrogen programme, creating demand for both technology partners and storage solutions as industrial decarbonisation pressures mount.

Why does it matter for the circular economy desk?

Carbon capture sits at the intersection of waste-stream management and industrial decarbonisation: captured CO₂ is increasingly treated as a commodity input and a regulated waste stream, not merely an emission. A bilateral framework that pairs Icelandic storage expertise with Indian industrial scale could shape how captured carbon flows between technology providers, emitters and storage operators in South Asia.

Green hydrogen adds a second materials dimension. Electrolyser build-out drives demand for platinum-group metals, nickel and steel, while hydrogen offtake agreements increasingly determine the pace of circular industrial clusters — fertiliser, refining and steel among them.

Geothermal itself carries a circularity angle: brine and heat co-products feed district heating, greenhouse agriculture and mineral extraction loops, models Iceland has commercialised domestically.

What comes next?

The critical milestone will be the formalisation of the partnership — a signed bilateral agreement, a memorandum of understanding with named implementing agencies, or a first flagship project with a disclosed capacity figure. Until then, the three-track proposal remains a commitment to track rather than capacity to count.

Watch for the first joint project announcement, which will reveal whether the cooperation concentrates on geothermal pilot plants in India's identified resource zones, carbon capture offtake and storage deals, or hydrogen-linked power purchase structures.