This agreement does not entail any obligation on the part of Landsvirkjun to develop hydropower facilities or a submarine cable with them.
The initiative came from the Norwegians who are interested in buying electricity from renewable resources in Iceland. Several meetings have been held both in Iceland and Norway in connection with this issue.
Under the cooperation agreement, the three companies will explore the possibility of using renewable energy in Iceland to produce electricity for export via submarine cable to Norway, the North Sea fuel-producing zones or the UK. The study will examine marketing potential, production and transmission cost of green electricity, and highlight what needs to be done in order for the project to be realized.
Feasibility study tasks are shared out so that Statoil studies the actual feasibility of the project and Statnett the power transmission, while Landsvirkjun acquires information about harnessing of renewable energy resources in Iceland.
Landsvirkjun regards this project as an opportunity to keep abreast of developments in electrical technology and European marketing.
This must be seen as a possible future project which could be realized ten years hence or even later. Landsvirkjun has previously examined the possibility of a submarine cable and concluded then that a maximum of 600 MW could be transmitted between countries.