Reykjavik Energy receives EUR170 million financing for projects in Iceland

Alexander Richter 21 Nov 2009

The European Investment Bank (EIB) will lend Reykjavik Energy EUR 170m for the expansion of its geothermal power capacity at the Hellisheidi Power Plant and a new plant called Hverahlid in proximity.

Announced in a release, “The European Investment Bank (EIB) will lend EUR 170m to Orkuveita Reykjavikur (Reykjavik Energy) for the expansion of its geothermal power capacity. The finance contract was signed today in Reykjavik by EIB Vice-President Eva Srejber and on behalf of Orkuveita Reykjavíkur the Chairman of the Board, Guðlaugur Gylfi Sverrisson and the CEO, Hjörleifur B. Kvaran.

The project concerns the expansion of the Hellisheidi geothermal complex by an additional 90 MW and the construction of a new 90 MW geothermal power plant at Hverahlíð. The objective of these new power units is mainly to meet increasing demand for electricity in the export-orientated industrial sectors, notably supplying one existing and one new aluminium smelter. The project therefore supports EU policy to promote the use of renewable energy globally and to fight climate change.

“We are pleased to support this environmentally-friendly technology for a project contributing to economic recovery in Iceland and to continue co-operation with our established partner, Orkuveita Reykjavikur ”, said EIB Vice-President Eva Srejber. ”

Source: Release via 7thspace