Icelandic geothermal company ON Power has secured a loan of ISK 4.625 billion (USD 37.8m/EUR 32.1m) for a project to expand and upgrade the Hellisheidi Geothermal Power Plant at home.
The 10-year financing, arranged together with parent company Reykjavik Energy, is provided by the Nordic Investment Bank (NIB). It will be used to co-finance investments over the 2025-2027 period.
The project, estimated at ISK 6.338 billion, includes expanding thermal production, drilling a new production well and building a new maintenance and storage facility. It is aimed at enhancing supply security and addressing rising demand.
The investments will increase thermal production capacity to 345 MW from 220 MW. Initially, the increase will add between 50,000 and 100,000 MWh more of renewable heat during peak-demand periods. In addition, the new production well is expected to deliver a net electric output of 5 MWe.
“As demand for hot water and electricity continues to rise, it is essential to invest in infrastructure that is both sustainable and future-proof. By expanding production at ON Power’s Hellisheidi power plant, we are ensuring a secure, efficient and reliable energy supply for our communities, while maximising the value of Iceland’s clean geothermal resources,” Saevar Freyr Thrainsson, Reykjavik Energy CEO, said.
Source: Renewablesnow.com
