Hveragerði is a small geothermal town about 45 km east of Reykjavík, sitting directly on top of one of Iceland's most active hot-spring fields. Steam rises from vents throughout the town, and the ground is warm enough to bake bread in a pot buried in the earth — locals actually do this, and the resulting rúgbrauð (hot-spring bread) has a texture and character you will not find in a conventional oven.
The thermal energy powers a network of geothermal greenhouses where flowers, tomatoes, cucumbers, and even bananas grow year-round despite the northern latitude. The town has a long tradition of horticultural education, and trainee gardeners from across Iceland come here to learn. Walk through the Hveragerði Geothermal Park in the town centre to see hot springs and steam vents without leaving the pavement.
For hikers, a well-marked trail leads up the Reykjadalur valley to a geothermally heated river where you can bathe outdoors — one of the better free experiences in Iceland. The town also has the NLFI Rehabilitation Centre with thermal pools that draw visitors seeking geothermal therapy and are open to the public on a day-visitor basis.