Climeon signs agreement to expand geothermal power plants order

Swedish energy technology company Climeon has signed an agreement with the Icelandic company Varmaorka to expand an existing order on geothermal power plants to around 65 million euros from just over 30 million euros.
Climeon signs agreement to expand geothermal power plants order
Courtesy of Climeon

Climeon won the initial order, for 100 geothermal power plants, in August 2017 from the Icelandic energy operator Varmaorka. That order has now been expanded to 197 geothermal units, courtesy of a financing solution from Baseload Capital. An important prerequisite for financing has been that the Heat Power modules are standardised and provide predictable revenue flows.

The modules will be placed in about 20 locations and will be delivered in groups of 2-15 units over a period of 36 months through June 2021. The first delivery consisted of four modules and was delivered to Flúdir on southern Iceland earlier in June this year. The production of three additional modules for the next site has begun during the summer for delivery in the autumn.

“The potential of geothermal energy on Iceland with Climeon's technology is greater than we thought a year ago” said Ingvar Gardarsson, Chairman of the Board of Varmaorka. “During the year we have secured several new sites, and we therefore want to increase the speed of our rollout and secure delivery of modules to us”.

Thomas Öström, CEO of Climeon added that the company’s goal is to become the world’s number one climate solver by selling, producing and delivering Heat Power modules and that the deal in Iceland shows that through small-scale distributed geothermal energy the company can create large-scale electricity production for communities and countries.

Image courtesy of Climeon

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