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RusHydro and Reykjavik Geothermal sign geothermal cooperation agreement

Geothermal plant, Kamchatka/ Russia
Alexander Richter 15 Jun 2011

RusHydro and Icelandic geothermal company Reykjavik Geothermal have signed an agreement on cooperation and defined the basic terms of cooperation in the field of geothermal energy, with RusHydro as investor and Reykjavik Geothermal as management company.

In the news reported today from Russia, “RusHydro and Icelandic geothermal company Reykjavik Geothermal have signed an agreement on cooperation and defined the basic terms of cooperation in the field of geothermal energy.

Under the agreement, the parties are considering the possibility of creating a joint venture company whose main field of activity which will be the construction of geothermal power plants with total installed capacity of 200 MW. Controlling stake in future joint venture will be owned OAO RusHydro . RusHydro will act as an investor, Reykjavik Geothermal – as the management company.

To implement similar projects in Russia with a total installed capacity of not less than 100 MW, ” RusHydro “considers establishing a 100% subsidiary.

In connection with the signing of the agreement the Deputy Chairman of OAO RusHydro George Rizhinashvili said: “RusHydro sees huge potential in geothermal energy development in Russia and abroad, and has high hopes for cooperation with a highly professional team of Reykjavik Geothermal joint projects in this area .

In turn, Executive Director Reykjavík Geothermal Gudmundur Toroddsson said: “We believe that cooperation with the company RusHydro will accelerate the development of geothermal energy in the world and opens opportunities for our company and for the development of Russian technologies in the implementation of projects in this area.”

Reykjavík Geothermal was founded in 2008. Management team the company has experience in the development of geothermal energy in more than 30 countries, including their account the project of one of the world’s largest geothermal power plants – Hellisheiði (Iceland) – installed capacity over 700 MW of electricity and heat. Currently Reykjavík Geothermal active in Russia, Africa, Pacific and Caribbean basins.”

Source: Bezformata Russia (in Russian)