In a recent report by RÚV it was revealed that the capital region bus company, Strætó, has received 95 million ISK from the European Union to purchase hydrogen-fuelled buses by the end of this year.

The grant is part of the European Union effort and goal to bring 300 hydrogen buses online in the next few years.

Strætó presently has 14 electric bus but they are not effecient . The buses can only be used for limited time as well as limited range. Hydrogen buses on the other hand can be used for the entire day without the need for refueiling.

In recent years hydrogen buses were being used in Iceland but were put out of service. Now that the technology has evolved, the hydrogen buses are seen as a very good public transportation option.

Although Iceland is not in the EU, Strætó could apply for the grant under the EEA Agreement.