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Tender for consulting agreement for geothermal development in Iceland

Drilling rig on site at Theistareykir, Iceland
Alexander Richter 14 Jun 2011

Icelandic Landsvirkjun and Theistareykir ehf advertise tender for consultancy services for proposed geothermal power plant development of 190-200 MW in the Northeast of Iceland.

The National Power Company of Iceland (Landsvirkjun) and Theistareykir ehf have advertised a tender for consultancy services for proposed geothermal power plants at Bjarnarflag and Theistareykir in the Northeast of Iceland.

The tender is advertised in the European Economic Area with a deadline for receipt of bids on August 9, 2011.

As announced in May, both companies accelerate research on the geothermal development to meet increased demand with talks underway with potential buyers in this region in the Northeast of Iceland.

The tender is for the design and preparation of documents for the tender of construction work of a power plant of up to 90 MW at Bjarnaflag and a 90 MW plant at Theistareykir, as well as with the help of monitoring the installation of mechanical and electrical equipment. The scope is about 120 man-years or 220,000 hours with a larger contract.

Both companies are working together on the preparation of the work on permitting for the planned plants. Landsvirkjun is planning to seek for a permit from the National Energy Authority (Orkustofnun) for a 45MW plant at Bjarnarflag and Theistareykir ehf for 90-100 MW plant at Theistareykir before the year end of 2011.

Assuming the necessary permits to be granted, it is expected that construction will begin with the first step at Bjarnaflag in the summer of 2012 (45 MW) and the startup will take place at the end of 2014. It is expected that construction at Theistareykir in the second half of 2012 and the first induction phase (45 MW) will be launched in mid 2015, with a later step (45 MW) in late 2015.  The work plan seeks to ensure sustainability of the geothermal areas.

Total investment of this project is estimated at ISK 47 billion (US$412 million). Accrued research and preparation costs are estimated now at about ISK5.4 billion (US$47 million) for both plants.

The Environmental Impact Asessment for the 90 MW power plant in Bjarnarflag and 200 MW power plant at Theistareykir is completed. Exploration drilling have already secured enough steam for the 45 MW level on each project site.”

Source: Landsvirkjun announcement (in Icelandic)