Tender released for the 2nd phase of the Þeistareykir Geothermal Power Project

15. September 2015

Landsvirkjun will release a tender for drilling work for the second phase of the Þeistareykir Geothermal Power Station next week. The tender will include drilling work for eight production wells in the current production area.

Careful development ensures sustainable geothermal energy production

Preparation measures for the Þeistareykir power project have been ongoing for a number of years and all the necessary permits for anything up to a 100 MW power station have been approved. An environmental impact assessment has been carried out for a 200 MW power station and received a positive review from the Icelandic National Planning Agency. Landsvirkjun is committed to the careful development of sustainable geothermal energy production in phases.

Construction work for phase one of the Þeistareykir power project (45 MW) began last spring with the construction of a powerhouse for two turbines and steam condensers. The main contractor is the Icelandic construction company LNS Saga and construction work has been successful so far. The first phase of the project is expected to begin operations in the autumn of 2017.

Capacity testing supports plans for increased energy production

Extensive capacity tests were carried out at Þeistareykir last winter to prove the capacity of the area and to assess the possible impact of steam utilisation on the geothermal area. Wells were opened for discharge at full output from November, 2014 until the end of June, 2015. The results and model calculations were assessed by experts who concluded that the area would be suitable for long-term energy production (90 MW). The results support the ongoing careful development of the Þeistareykir area.

Preparation work for phase two initiated

Phase two of the Þeistareykir Geothermal Power station (45 MW) has been initiated, in accordance with the results of the capacity tests. Turbine two could begin operations in 2018 and the power station could produce a total of 90 MW. Eight production wells have been drilled so far, producing steam equivalent to 60 MW of electricity, or one turbine. However, further drilling is required to produce more energy.

Further tenders will be prepared alongside the release of the drilling work tender, including the supply of equipment for the power station as well as the extension of an existing agreement for the purchase of additional equipment for the second phase of the project. The second phase of the project will enable Landsvirkjun to meet increased energy demands in the northeast of Iceland and elsewhere in the country. The project will also improve the security of energy supply in the area.

The unique environment of the Þeistareykir area

The unique environment of the Þeistareykir area has been an important consideration since preparation work for the Þeistareykir project began. The area was previously almost untouched, with the exception of archaeological artefacts and traces of sulphur mining from previous centuries. Plans for development have therefore included the demarcation of areas protected for archaeological and environmental reasons.

Visual aspects have also been considered during the design process for the power station and landscaping and finishing work is therefore completed alongside construction work.

An emphasis on exploring the possibilities for diverse utilisation in geothermal areas

Landsvirkjun has placed an emphasis on exploring the possibilities for diverse utilisation in geothermal areas in the northeast of Iceland. Diverse utilisation will enable Landsvirkjun to utilise the geothermal resource in a more efficient manner by utilising the entire geothermal resource.

Hot water, STEAM and gas can be utilised by a number of industries requiring energy. These industries include agriculture, the algae cultivation industry, further processing of raw materials and fuel production from carbon dioxide emissions from the power stations. Further utilisation could also support tourism within the geothermal area. The nature baths in Mývatn are a prime example of this as they utilise the spillover from the Bjarnarflag Geothermal Power Station.

Further information on the Þeistareykir project can be accessed here:

News: Þeistareykir Geothermal Power Station Reaches the Construction Phase

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