This work is focused on presenting the main results and discussions concerning the environmental benefits of reducing the non-condensable gases emitted from the Nesjavellir geothermal power plant. The primary objective of this study is to conduct a life cycle evaluation to analyse the overall environmental benefit effects of producing 1 kWh of electricity and 1 kWh of thermal energy in the geothermal power plant at Nesjavellir, which is located in Iceland. The assessment is performed both before and after implementing an abatement system designed to reduce CO2 and H2S gases. The production of geothermal energy is increasing every year and, therefore, it is crucial to identify and quantify the key environmental factors of producing this type of energy and improvements for the future energy transition of the energy generation sector. Firstly, the results show that the environmental impact of electricity production is higher compared to heat production. More in detail, the emissions due to the nature of the geothermal fluid and the construction phase represent the most relevant environmental load for both electricity and heat production for nearly all the 18 environmental impact indicators studied. Furthermore, considering the abatement system for the non-condensable gas emissions, reductions of 78% and 60% in global warming potential is achieved for a production of 1 kWh of electricity and 1 kWh of thermal energy. In terms of external environmental costs, the implementation of an abatement system results in a reduction exceeding 95% for both electricity and thermal energy production per kilowatt-hour. The outcomes obtained from both the baseline scenario and the application of the abatement system undeniably prove that the latter results in a substantial decrease in the overall environmental impacts linked to the generation of 1 kWh of electricity and 1 kWh of heat, encompassing a notable reduction in external environmental costs (externalities).