NIB funds geothermal power plant in Iceland

The Theistareykir plant near Húsavik, Iceland. Photo: Landsvirkjun.

NIB has signed a long-term loan agreement of USD 50 million (EUR 45 million) with electricity producer Landsvirkjun for the construction of a geothermal power plant in northeast Iceland.

The 16-year maturity loan has been provided for the first construction phase of the Theistareykir power plant near the town of Húsavik. In this first phase, two units with a capacity of 45 MW each will be built. The favourable geothermal conditions in the area are expected to enable a total output capacity of up to 200 MW of electricity.

The Theistareykir plant will increase national electricity production by 4%, and mainly cover the energy demand of the advanced silicon metal production plant that is currently being constructed on the outskirts of Húsavik. A third of the electricity produced will be made available to the municipalities of Húsavik and Akureyri, as well as to other local industry.

“The project contributes to a more sustainable production of silicon metal for the world market, a major export segment for Iceland, where access to renewable energy is a key success factor”, says Henrik Normann, NIB President & CEO.

The geothermal plant is being constructed as part of a larger infrastructure project that includes the new silicon metal production plant, a high-voltage transmission line and an access road. The facility is scheduled to commence power production in the autumn of 2017.

Landsvirkjun is owned by the Icelandic state and is the country’s largest electricity producer. The company produces energy from renewable sources, and generates around 70% of all electricity used in Iceland.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

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