Observatory to Rise in Iceland's Krýsuvík The town council of Hafnarfjördur has provided a lot to the Seltjarnarnes Observatory Association to construct an observatory in the geothermal area of Krýsuvík on the Reykjanes peninsula. The association plans to construct a 1,650 square-meter building with a 13-meter high domed tower in Krýsuvík, which offers prime conditions for stellar observation.