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Icelandic ENEX split between owners

Alexander Richter Alexander Richter 7 Feb 2009

The Icelandic geothermal player ENEX has been split up between its largest shareholders, Reykjavik Energy Invest (REI), daughter company of Reykjavik Energy (Orkuveita Reykjavikur), and Geysir Green Energy (GGE).

As reported in a company statement yesterday and published in Icelandic papers this morning, an agreement has been reached by the owners of ENEX to split up the company. This division of company assets has been agreed on by a shareholder meeting of the company and in the boards of the largest shareholders, Reykjavik Energy Invest (REI), daughter company of Reykjavik Energy (Orkuveita Reykjavikur), and Geysir Green Energy (GGE).

Enex was owned in 70% by GGE and REI at 26.5%, with smaller stakes owned by other players.

With the agreement, Geysir Green Energy increases its share in Enex China, which holds shares in a geothermal joint venture, Shaanxi Green Energy,  working on geothermal district heating projects in China, namely in Xian Yang in Shaanxi Province. This project is co-owned by CGCOC in itself a daughter of China’s Sinopec. GGE now owns a 75% stake in Enex China and REI 25%. “Furthermore GGE overtakes in full the projects of ENEX in Germany and will thereby become the largest player in the development of geothermal energy power projects in the country through Enex and its daughter company Exorka.”, so the statement by the companies.

REI on the otherhand will take over the stake of Enex in Iceland America Energy, which works on geothermal power projects mainly in California, e.g. at Truckhaven in Imperial County.

The announcement states, that “GGE will continue to work in the United States, where the company is a leading investor in two other geothermal companies.”

Beyond the above mentioned projects of Enex, REI and GGE have worked together on the Philippines in the company Envent. With the agreement GGE will own the majority in the company (80%) and takes over the majority on the board accordingly.

Source: Statement by the companies (via Icelandic Morgunbladid)