The European Investment Bank (EIB) says they intend to invest 170 million euros in Orkuveita Reykjavikur (Reykjavik Energy) for the expansion of its geothermal power capacity.
In a press statement from the organization, they say that the project concerns the expansion of the Hellisheiði geothermal complex by an additional 90 MW and the construction of a new 90 MW geothermal power plant at Hverahlíð. The objective of these new power units is mainly to meet increasing demand for electricity in the export-orientated industrial sectors, notably supplying one existing and one new aluminium smelter. The project therefore supports EU policy to promote the use of renewable energy globally and to fight climate change.
“We are pleased to support this environmentally-friendly technology for a project contributing to economic recovery in Iceland and to continue co-operation with our established partner, Orkuveita Reykjavikur”, said EIB Vice-President Eva Srejber.
The plan is not without its controversy, as Minister for the Environment Svandís Svavarsdóttir – and most others in her party, the Leftist-Greens – are opposed to the construction of more aluminium plants, while their coalition partners in the government – the Social Democrats – want the plan to go forward, in order to create more jobs.
Founded in 1958, EIB operates in the 27 EU Member States, the EU’s neighbour countries and more than 100 other countries around the globe.