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Tenders advertised for engineering consultancy in North East Iceland

June 11, 2011

The call for tenders is advertised in the European Economic Area and the deadline for submitting tenders is until 9 August 2011.

Landsvirkjun and Theistareykir ehf. announced at the end of May that the companies would speed up research on the geothermal areas at Bjarnarflag and Theistareykir this summer in order to meet increased demand from purchasers of energy in the area. Negotiations are currently taking place with potential purchasers of energy for industry in North East Iceland.

The magnitude of the project is 120 man years

The project constitutes the tendering of the design and the writing of the tender documents for construction of a power station of up to 90 MW at Bjarnarflag and of a power station of up to 90 MW at Theistareykir along with assistance with the installation of machinery and electrical equipment. The project is 120 man years, which is equivalent to 220,000 working hours.

Landsvirkjun and Theistareykir ehf. work in parallel on preparations for the construction and on matters relating to permits for the planned power stations. Landsvirkjun intends to apply to the National Energy Authority for a permit to operate a 45 MWe power station at Bjarnarflag and Theistareykir ehf. for a 90-100 MWe power station at Theistareykir before the end of 2011. Master Planning for the Þingeyjarsveit municipality has been sent to the Minister for the Environment for endorsement and the Council of Thingeyjarsveit municipality currently has for discussion and decision, the permits required for this summer's preparatory work.

Given that the required permits are issued, work is scheduled to commence on the first stage of the Bjarnarflag Power Station in the summer of 2012 (45 MW) and the activation will take place at the end of 2014. It is planned that construction of the Theistareykir Power Station will commence in the latter part of 2012 and that the first stage of the power station (45 MW) will be activated in the middle of 2015 and the second stage (45 MW) in the latter half of 2015. The work plan endeavours to ensure sustainability of the geothermal areas in question.

Start-up costs of ISK 47 billion

Total start-up costs for this project are estimated at ISK 47 billion. Current expenditure on research and preparation is about ISK 5.4 billion for both power stations.

Assessments of environmental impact for a 90 MW power station at Bjarnarflag and a 200 MW power station at Theistareykir have been completed. Exploratory drilling has already guaranteed sufficient steam for the 45 MW stage at each location.


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