Kópsvatn is Varmaorka's first project. In the spring of 2018, construction began on Kópsvatn and ended in the autumn with production of 600 kW. Energy production began at the same time. At Kópsvatn there is a borehole that was drilled in 2008 and the temperature of the water is about 120°C. With the expansion in the spring of 2021, the production is 1,200 kW. After utilization of excess heat, the water is mostly used for house heating in Flúðir and elsewhere at 85°C. There are ideas for the use of water and electricity for further innovation and business development.