Effo to build the Faroe Islands’ largest energy storage facility

Ólavur Í Geil
23 hours ago
2 min read

Effo has announced plans to construct the Faroe Islands’ largest energy storage facility in Søldarfjørður, marking a major investment in the country’s energy infrastructure. The project is expected to significantly increase storage capacity, strengthen Effo’s competitiveness, and improve the overall reliability of energy supply for the Faroese population.

Earlier today, Effo signed agreements with local companies Articon and Mest to carry out the construction. The collaboration reflects Effo’s commitment to involving Faroese partners in major national projects.

Effo, which has supplied energy to the Faroe Islands for more than 100 years, is positioning itself for the future with this development. CEO Gunnar Nielsen emphasized the importance of a locally anchored solution:

“We are very pleased to have secured a Faroese solution for this project and to have signed agreements with Articon and Mest. Effo is a Faroese energy company with Faroese investors, and naturally we aim to use local suppliers—provided they are competitive in price and quality. In this case, that has been achieved, which we are very happy about. This is one of the largest investments in the company’s history, and the storage facility is a crucial step in preparing for future energy needs in the Faroe Islands.”

Built for Future Energy Demand

The new energy storage facility is designed with future needs in mind. It will consist of seven storage tanks with a total capacity of 20,000 cubic meters:

3 tanks of 5,000 m³ each
4 tanks of 1,250 m³ each

Initially, the facility will store gas oil, diesel, petrol, and jet fuel.

Construction is set to begin in August, with the facility expected to be completed and operational by the end of 2027, entering full service around the turn of 2027/28.

Approximately 80 people will be involved in the project during its development phase.

Strengthening Energy Security

Beyond boosting storage capacity, the project will play a key role in enhancing energy security across the Faroe Islands. A larger and more modern storage system will ensure a more stable supply, helping to safeguard against disruptions and supporting the country’s long-term energy resilience.

About Effo

Effo’s roots date back to 1918, when the Trapp brothers obtained representation rights for Det Danske Petroleums Aktieselskab (D.D.P.A). The company came into Faroese ownership in 2007, when it was acquired from Statoil. Today, Effo is 100% Faroese-owned.

The company adopted the name “Effo” in 2009, derived from Føroya Orkufelag (The Faroese Energy Company).

Effo also holds a 50% stake in Vindrøkt, a company active in renewable energy. Vindrøkt owns the Gellingarklett wind farm, which produces around 100 GWh annually. The company was a pioneer in the Faroe Islands, installing the first commercially operated wind turbines in 2003. Its current wind farm in Vestmanna generates energy equivalent to the consumption of approximately 1,250 households.

This new investment underscores Effo’s ambition to balance traditional energy supply with future needs, while maintaining strong local partnerships and ownership.