Organic waste has been sorted and composted in Akureyri for over a decade. Every household in town has a green basket for organic waste, and the residents are given bioplastic waste bags. Organic waste has its own compartment in the garbage bin. The waste is collected by the town's garbage collector and delivered to the Molta ehf composting station in Eyjarfjörður. In addition to organic waste from households in the town, the composting station also receives organic waste from schools and businesses in the town, as well as wood, leaves, and paper that has been sorted in Akureyri.

It is critical that no organic waste is disposed of in general waste because composting organic waste has significant environmental benefits. CO2 emissions are reduced by 1 kg for every kilogram of organic waste composted rather than landfilled. Composting also produces high-quality fertilizer.