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Landsvirkjun, Theistareykir and Jardboranir sign agreement for exploratory drilling in North-east Iceland in 2008

November 23, 2007

According to the agreement, drilling will begin next January on three Landsvirkjun sites, at Krafla, Bjarnarflag and Gjástykki. Exploratory boreholes will be sunk for Theistareykir ehf on the geothermal site near Theistareykir. Directional drilling is expected to be used for all the boreholes, each of which will be around 2,300 m deep.

These operations are allowable according to planning and environmental legislation.

According to Bent S. Einarsson, Managing Director of Jardboranir, this agreement further consolidates his company's position regarding projects for next year. “We have enjoyed good relations with both these clients, and we hope to achieve the best possible results from these new exploratory drillings that aim for even better exploitation of environmentally friendly energy in this area."

According to Örn Marinósson, Landsvirkjun’s Deputy Managing Director, and Franz Árnason, Chairman of Theistareykir ehf, this project is one step along the two companies’s path towards wider use of valuable, environmentally sound, geothermal energy.

The boreholes are part of a survey of the extent of this geothermal area, and are made with energy supplies in mind for a possible heavy industrial unit in Húsavík. The sale of electricity from these geothermal areas in North-east Iceland is planned to begin in 2012–15. The energy companies plan to complete their research in the above-mentioned geothermal areas in 2008 in accordance with a current understanding with Alcoa.

Signing the agreement. Front from the left – Bent S. Einarsson, Managing Director of Jardboranir and Örn Marinósson, Deputy Managing Director, Landsvirkjun. Behind, from the left – Gardar Sigurjónsson, Jardboranir Project Manager, Ari Stefánsson, Jardboranir General Manager, Árni Gunnarsson Landsvirkjun Project Manager and Björn Stefánsson, head of Building and Construction at Landsvirkjun.

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