This geothermal power plant was the first stop on the Golden Circle tour. The coach followed a pipeline from the city up into the mountains toward the centre of Iceland, the pipeline carries hot water from underground to heat the city - there are a number of geothermal water sources in different parts of the country and they have to be careful not to mix the waters, since they will cause troublesome solid residues if they meet.
If I were an evil villain this is the place I would choose for my top secret lair, its got everything you want for that, imposing scenary, steam, easily defensible, an octagonal control room and no obvious reason to be there unless you know the geology of the area.