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EIB approves $137 million loan for Theistareykir geothermal plant, Iceland

Construction site of Theistareykir project, Iceland, video screenshot (source: YouTube/ LNS Saga)
Alexander Richter Alexander Richter 16 Dec 2015

The European Investment Bank approves a $137 million loan for the 2x45 MW Theistareykir geothermal project in the northeast of Iceland.

The European Investment Bank’s Board of Directors recently approved EUR 12.7 billion in loans to support new investment in energy, transport, education infrastructure, corporate research and food security and disaster recover in projects across Europe, Africa and Asia.

As part of that EIB’s Board of Directors approved the loan of approximately EUR 125 million ($137 million) for the Theistareykir geothermal plant, currently under construction in Iceland. We reported last week that the project also secured a loan from JBIC.

The project consists of the design and construction of a 2 x 45 MWe geothermal power plant, along with its steam-gathering system, and wells in the north-east of Iceland. The exploration wells show good prospects. The power plant will provide electricity to a new industrial plant and support local economic growth.

Icelandic engineering firm Verkís provides some further details for the project on its website.

“The Theistareykir plant consist of two 45 MW machine units that are to be operational in two stages, the first in 2017 and the second in 2018. The Bjarnarflag power plant is also to be constructed in two 45 MWe stages that have yet to be scheduled.

The proposed design and work plan endeavours to ensure sustainability of the geothermal areas in question: the two phase flow from the geothermal wells in the two geothermal systems is separated into steam and geothermal water in separation stations. The steam is then piped to the applicable power plant, where it passes through a moisture separator. By diverting the flow to the condensing turbines at about 9,5 bara rated inlet pressure, production of electrical energy is initiated. The steam flow in both power plants contains non condensable gases which constitute of up to 0,6% by weight.

The two 45MW Theistareykir untis and associated systems, steamfield works and civil works are to be jointly tendered. The major equipment contracts already in place as well as those for most civil works and piping. All design and tender documents for the Bjarnarflag plant are in place and await the formal investment decision of the owner, the national Icelandic Power Company Landsvirkjun.”

Here a great video from the construction site provided by the construction firm LNS Saga:


Source: EIB (EUR 13 billion loans, Dec. 15, 2015), Verkís