Icelandic Varmaorka secures EUR 5.5m loan for further small-scale geothermal development
Varmaorka geothermal plant at Kopsvatn, Iceland (source: company)
Alexander Richter
7 Nov 2020
Varmaorka has secured loan financing for up to ISK 903 million (EUR 5.5m) in the form of a loan by Icelandic Arion Bank and the European Investment Fund.
Icelandic geothermal heatpower operator and developer Varmaorka has announced having secured financing of EUR 5.5 million (around ISK 903 million) for additional development and build out of its geothermal heatpower projects in Iceland. The company utilises small modular ORC units for small-scale development utilising existing wells in Iceland.
“The loan is part of a partnership between [Icelandic] Arion Bank and the European Investment Fund, EIF. The purpose of the co-operation is to provide companies with access to capital at lower interest rates if certain conditions are met, thereby supporting innovation, stimulating the economy, research and development, “says a press release.
Varmaorka’s first project was at Kópsvatn in Hrunamannahreppur, where a geothermal power plant with a power generation capacity of 600 kW (0.6 MW) is now installed. The plant connected to the grid in the spring of 2019. There are plans to expand the power generation capacity of the plant to 1,200 kW (1.2 MW).
Furthermore, construction is being completed for a 300 kW power generation unit in Reykholt in Borgarfjördur and in Efri Reykjar in Bláskógabygd it is planned to produce about 600 kW of energy in the beginning [of next year].
“We are very pleased to complete long-term financing with Arion Bank for next year’s project. Varmaorka’s thermal power plants are generally small in size, but the opportunities in many places for the utilization of excess heat and for value creation. The company’s goal is to promote better utilization of resources in a sustainable and environmentally friendly way and work for energy security in the local area “, says Ragnar Snær Ragnarsson, CEO of Varmaorka.
Source: VB.is
