In 2013, Landsvirkjun and Landgræðslan (now Land and Forest Iceland) embarked on a joint initiative to explore carbon sequestration through land reclamation. The initial phase of the project encompassed approximately 260 hectares of farmland within the Kot and Steinkross estates in Rangárvellir. Since its inception, the project has expanded to encompass an additional 1,500 hectares of adjacent land, including areas belonging to Víkingslækur and Bolholt. Landsvirkjun assumes full financial responsibility for this undertaking.

The terrain conditions ranged from eroded sites with sporadic low-growing vegetation to challenging sands or coarse lava fields. The primary focus has been on fortifying local vegetation using various fertilisers. Meat meal is distributed in suitable areas, while artificial fertilisers are employed in more challenging terrains. Certain interior areas have been deemed highly inaccessible, precluding direct intervention. However, these areas will still benefit from the enhanced vegetation growth in their surroundings.

Upon the enhancement of vegetation growth and the cessation of frost-induced soil heaving, birch saplings are strategically planted in designated land sections to facilitate natural self-seeding and propagation within the surrounding vicinity. This methodology has demonstrated remarkable success in the Hekluskógar project, where birch trees are planted in designated "islands" that function as seed repositories for the neighboring areas. Furthermore, the presence of mature birch plants within and around the restoration zone contributes to the natural seeding process. In the absence of unforeseen disruptions, the area is anticipated to undergo a gradual transformation into a harmonious blend of restored moorland and flourishing birch woodland.

The area in question is Bolholtsskógur, which is managed by the Forestry Association of Rangæingar. The work trails constructed around the contract area connect to the corresponding trails in Bolholtsskógur. These trails facilitate the reclamation work, including fertiliser application and planting, and will serve as outdoor trails in the future. The total length of these trails ranges from 30 to 40 kilometers.

This collaborative project between Landsvirkjun and Land and Forest Iceland accomplishes several goals. The previously unproductive and carbon-emitting eroded land is transformed into a verdant landscape that sequesters carbon, fosters a diverse and thriving ecosystem that supports various bird species and other organisms, and also serves as an enjoyable outdoor recreational space for the community.