North Tech Drilling secures major Icelandic geothermal contract
Hera Grímsdóttir, Executive Director of Research and Innovation at Orkuveitanu, Jordan Oxley, one of the owners of North Tech Drilling, Geir B. Hagalínsson, CEO of North Tech Drilling, Sævar Freyr Þráinsson, CEO of Orkuveitanu, Júlíus Emilsson, Drilling Manager at North Tech Drilling and Hrefna Hallgrímsdóttir, Director of Water Resources at Veitur - Picture source: Orkuveita/ (c) Jóhanna Rakel
Alexander Richter
19 Dec 2024
Following a competitive tender process, Reykjavik Energy (Orkuveitan) and its subsidiary, Veitur, have entrusted the consortium led by North Tech Drilling with drilling up to 35 geothermal wells under a contract valued at USD 33m in Iceland.
In a resounding success for Iceland’s renewable energy sector, it was announced today that North Tech Drilling ehf., in partnership with Hydro Drilling SRL, has been awarded one of the largest geothermal drilling contracts in the country’s history. Following a competitive tender process initiated in August 2024, Reykjavik Energy (Orkuveitan) and its subsidiary, Veitur, have entrusted the consortium with drilling up to 35 geothermal wells under a contract valued at ISK 4,600 million (approx. USD 33 million)
The project marks a significant milestone for geothermal development in Iceland. Divided into three categories, the contract covers the drilling of:
- Ten shallow geothermal wells for economic exploration and production.
- Eleven deep geothermal and exploratory wells, with the potential for eight additional wells.
- Four directional geothermal production wells, with the possibility of two additional wells.
This comprehensive approach to geothermal exploration ensures a robust pipeline of sustainable energy resources to meet Iceland’s growing energy demands.
Driving sustainable development
The cost-efficient ISK 4,600 million (USD 33m) bid by North Tech Drilling, significantly lower than the estimated ISK 5,967 million (USD 43m) , highlights the firm’s commitment to delivering value without compromising on innovation.
Speaking at the contract signing, Hera Grímsdóttir, Executive Director of Research and Innovation at Orkuveitan, stated: “This project is a cornerstone in our strategy to be a leader in the energy transition. By harnessing geothermal resources responsibly, we secure a sustainable energy future for our communities.”
Echoing this vision, Hrefna Hallgrímsdóttir, Director of Water Resources at Veitur, emphasized the project’s importance in expanding district heating systems and ensuring energy security for Iceland’s growing population.
A Triumph for North Tech Energy
Geir B. Hagalínsson, CEO of North Tech Drilling, celebrated the win as a testament to the firm’s expertise and alignment with Iceland’s green energy goals: “Returning to the geothermal fields of Iceland is an honor. Our ‘Green Drilling Method’ aligns perfectly with Orkuveitan and Veitur’s vision of reducing the carbon footprint through electrification and innovation. This project signifies a new era of affordable and sustainable drilling practices in Iceland.”
North Tech Drilling’s global experience—from tropical jungles to the Himalayas—positions it uniquely for this project, blending cutting-edge techniques with a deep understanding of Iceland’s geothermal landscape.
With drilling set to commence in August 2025, this project is a bold step towards ensuring Iceland’s energy independence and sustainability. As the world increasingly turns to renewable energy, projects like this reaffirm geothermal energy’s potential as a reliable and green power source, so the press release.
Source: release by Reykjavik Energy
