EIB supports geothermal energy project in Iceland

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EIB supports geothermal energy project in Iceland

The European Investment Bank (EIB) has signed a €125 million (US$142 milion) loan agreement with Landsvirkjun, the National Power Company of Iceland, to finance a new geothermal power station and its geothermal wells at Theistareykir, near Húsavik in north-eastern Iceland. 

The financing will be used to support the design, construction and operation of a new 90 MWe geothermal power station and its geothermal wells, operated by the National Power Company of Iceland. The project will be located at Theistareykir, some 30 km south-east of Húsavik in the northeast of the country, where nine wells with over 50 MWe capacity have already been drilled and tested.

Vice-President Cristian Popa, responsible for EIB-operations EFTA-countries, commented:

“Iceland is in a very special position when it comes to renewable energy and it’s great to see how Landsvirkjun is making the most of it. The EIB is glad that it can support this important energy project, which also highlights how the bank supports the energy sector around Europe. The Icelandic expertise in this area is state of the art and serves as a blue print for geothermal projects around the globe."

 Hörður Arnarson, CEO of Landsvirkjun, added:

“This is an important milestone for Landsvirkjun and we are grateful for the support the EIB is showing renewable energy in Iceland. The EIB has in the past demonstrated its strong support in providing funding for sound and sustainable projects in Europe and we see this agreement as a sign of confidence in our company.”

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