Skagafjarðarveitur Utility is owned by the municipality of Skagafjörður, and provides the local inhabitants with geothermal water and fresh water. Skagafjarðarveitur has the exclusive right to harness geothermal reserves in the region. It also distributes cold water to the community and clean seawater for industrial usages.
There are several low-temperature geothermal fields in Skagafjörður where the water temperature is around 100°C at a depth of approximately 1 km. These reserves supply ample self-flowing hot water for residential and industrial use.
Hot geothermal water is used in industry for heating buildings, to stimulate growth in aquaculture, in heating greenhouses and swimming pools and for drying feed, to mention few fields of usage. Quantity and temperature of the geothermal water varies a lot from one location to another thus limiting industry that would rely on the supply of hot water to locations in Varmahlíð and near regions, Sauðárkrókur and Fljót, a farming region north of the village of Hofsós