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District heating plant in Vestmannaeyjar
HS Veitur hf operates a thermal energy plant in Vestmannaeyjar (Westman Islands), albeit from a distance. In the company's boiling plant, steam is manufactured in an electrode boiler and the water of the supply station is heated by steam. The distribution system is circular. The hot water is pumped to the homes and companies, after it is used it is then pumped back and reheated. There are two distribution systems in the town; all water that is supplied is sold by flow meters, sometimes energy meters. The supply plant has around 1428 meters set up.

During the 20th century Vestmannaeyjar had most of its heat produced by oil. Oilboilers were in every home and they were often in a special room or compartment, called boiler rooms. There an oiltank was kept outside located near the outwall of the boiler room. One of main flaws of heating houses with oil was the fire hazard, because fires were quite frequent due to oil use. In 1962, there was a marine cable connected to Vestmannaeyjar, thus creating an opportunity to heat houses with electricity, an option many preferred after the cable was laid. New houses built after 1962 were almost exclusively powered by electricity, while other homes switched to electricity from oil-based heating. Eleven years later, or in 1973, there was a volcanic eruption in Heimaey, and although a tragic event, it lead to further opportunities for harnessing energy. After the eruption it was possible to use the heat from the lava that was emitted. The heat was utilized henceforth in the town of Vestmanneyjar, which was a unique event on a global scale; in 1988 the heat from the lava ceased to be sufficient for the needs of the Vestmannaeyjar and since then an electrode boiler has supplied all the island's energy needs.

Fresh water distribution
HS Veitur hf runs a waterplant as well in Vestmannaeyjar; its water is taken from two water springs in the South Merkur area on mainland Iceland. The water is pumped in underwater pipes to Vestmannaeyjar and then into the distribution system. There are two distribution systems in the town, the upper and lower distribution systems. All water is sold through a flow meter, with the total of meters being around 1550.

There was a constant shortage of water in Vestmannaeyjar until 1968, when an underwater pipe was built to the islands, eradicating all water shortage and supplying healthy water, since before the construction of the underwater pipe the inhabitants of Vestmannaeyjar would collect water of their roofs of their houses into wells kept near each house.

Electricity
HS Veitur hf handles electricity distribution in Vestmannaeyjar, the energy comes from the mainland of Iceland through two sea cables that lead into the conveying station in Vestmannaeyjar, and from there to the distribution system of the town. There are still 150 houses in Vestmanneyjar that are heated with electricity. There are 38 distribution stations in the town, including 2346 meters. The 25th of August, 1915, is considered the founding day of Vestmannaeyjar's electrical power station, because the first diesel engine taken into use in Iceland occurred on that date. The engine was a Güldner, which had an output of 50 HP. This machine is now on display in the headquarters of Hitaveita Suðurnesja in Vestmannaeyjar. A powerstation was later constructed near Heimatorg after WW II. The power capacity of the station was around 4900 kilowatts. After the first sea cable arrived in 1962, the station was used as a backup system afterwards. The power station was destroyed in the eruption of 1973. The second sea cable was laid down in 1974. The backup system is displayed in the machine exhibition of HS Veitur hf headquarters in Vestmannaeyjar. The machines themselves are seven Caterpillars which can produce about 5MW.

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