Landsvirkjun completes financing for geothermal project

Landsvirkjun and the Nordic Investment Bank (NIB) have signed a US$ 50 million long-term loan agreement without a guarantee of collection for the construction of the Theistareykir project. Along with a recent loan from the EIB, this agreement marks the completion of the financing of the Theistareykir project.

The 16-year maturity loan has been provided for the design, construction and operation of the Theistareykir power station, which will have a capacity of 90MWe. The favourable geothermal conditions in the area are expected to enable a total installed capacity of up to 200 MWe.

As we reported in early June the EIB contributed €125 million (US$142 milion) for the financing of the geothermal power station and its geothermal wells at Theistareykir, near Húsavik in north-eastern Iceland. 

Landsvirkjun, the National Power Company of Iceland, is owned by the Icelandic state and is the country’s largest electricity generator. The company generates around 70% of all electricity used in Iceland with 100% renewable energy sources.

Hörður Arnarson, CEO of Landsvirkjun:

"We are very pleased with the trust and support shown by the The Nordic Investment Bank by granting this loan. The construction on the Theistareykir site is going well and the power station will commence operations in the fall of 2017. We expect that the power plant will be provide great support for the local industry and economy in North-Eastern Iceland.“