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Maintenance agreement signed for geothermal plants of ON in Iceland with local firm

Maintenance work on geothermal turbine, Nesjavellir/ Iceland (source: ON/ Deilir)
Alexander Richter Alexander Richter 23 Jul 2018

Icelandic geothermal power plant operator ON has signed a maintenance agreement with Icelandic firm Deilir Technical Services covering all geothermal steam turbine repair services for the company's geothermal power plants of Nesjavellir and Hellisheidi.

Earlier this month, Icelandic geothermal power plant operator ON (Our Nature) and Icelandic firm Deilir Technical Services signed a contract for the maintenance of large engine parts of the geothermal power plants of ON, Hellisheidi and Nesjavellir.

The maintenance work was tendered out in the European Economic Area, with the auction having been the result of a local development project that helped lower the cost of ON for the maintenance and reduced the risk associated with sending large-scale engines for overseas maintenance.

Framework agreement for four years

The auction was two layers; maintenance of rotors and diaphragms from the steam turbine, as well as mechanics and more maintenance of the power plants. Essentially the contract covers all geothermal steam turbine repair services.

Icelandic company Deilir had the best offer in both aspects. The agreement was signed July 10, 2018 by Bjarni Már Juliuson, Managing Director of ON and Jóhann Jónasson, Chairman of the Board of Deilir Technical Services, at the Hellisheidi Geothermal Power Plant in the presence of the employees of the companies. The contract is for four years and may be extended.

Development project after the financial crisis in Iceland

Following challenging times in the operation of the plants after the financial crash in 2008, ON (then Reykjavik Energy) decided to investigate the possibility of carrying out maintenance of large engine parts locally in the geothermal plants of Hellisheidi and Nesjavellir. Up until then, for decades, turbines had been sent abroad for traditional maintenance. Maintenance is mainly due to the winding of the rotor gear and other power components. Sending engine parts abroad was not only costly, due to the long-range shipment of the engine parts, but also created risk of loss or delay in transport.

Therefore in 2013, a development project was started at the Hellisheidi geothermal power plant to carry out periodic maintenance work in Iceland. Equipment was purchased and knowledge built up. The experiment was seen as successful. The cost of maintenance decreased, did not have to be paid in foreign currency, and repairs seem to have lasted longer than those done abroad. Therefore in the experience of ON benefits were numerous.

The results are beneficial to the geothermal sector as a whole

Based on the good performance and experience with the development project, it was decided to bid out the maintenance work on new assumptions. The agreement between Deilir Technical Services and ON is the outcome of the auction. ON hopes that efficiency gains will continue and the gained experience and knowledge will be beneficial for the geothermal utilisation in Iceland overall.

Source: ON Power (Icelandic)