Geysir Green Energy

Growing world energy demand coupled with the consensus on climate change mean emerging economies will need increased access to the low-carbon technologies already available to developed economies. Geysir Green Energy is an investment company which is actively involved in the transfer of Icelandic geothermal technology by investing in the development and construction of geothermal plants, acquiring geothermal plants currently owned by power utilities and participating in the privatisation of energy companies worldwide. Geothermal energy is a low-polluting, autonomous energy resource which provides base-load power. Electricity has been generated from it since 1910 and newer plants run at over 90% capacity. Although the resource is not available everywhere, a 1999 United States study approximated that geothermal power could meet the electricity demand of about 17% of the global population, whereby 39 countries could be wholly geothermal powered. Many of these countries are developing economies in Africa, Central and South America and on the Pacific Rim. Low temperature geothermal energy, suitable for direct use such as space heating and in industrial and agricultural processing, is even more widely available than the higher temperatures required for electricity generation.

The Reykjanes Power Plant started producing electricity in May of 2006. Its operating capacity is 100 MW with 10 to 12 wells providing its steam

Financing barriers include relatively high up-front investment costs as well as high drilling and exploratory risks. Geothermal projects are often small and located in rural areas, increasing transaction costs but yielding considerable economic benefits. As with other renewable energy technologies, the high capital costs provide a lifetime supply of fuel and frees up foreign currency otherwise used for fuel. Geothermal energy’s lifecycle cost is low and sustainably managed reservoirs can yield harnessable energy for many decades. Fossil fuels are still often subsidised and so geothermal energy is competing against unsustainable practices in a distorted marketplace. As this geothermal resource is capital intensive and requires crossdisciplinary expertise, the two greatest barriers to increased use are a lack of sufficient know-how and finance. Geysir Green Energy, however, has access to both and plans to fill this niche.

Overcoming Barriers

Much can be circumvented through the effective use of specialised knowledge. There is a high level of geothermal know-how and skill in Icelandic energy companies and Iceland offers impressive statistics when it comes to renewable energy. Nowhere in the world does geothermal energy contribute as great a part of a nation’s energy supply and the percentage is increasing. Power supply from geothermal energy sources increased tenfold from 1997 to 2007 and now around 90% of Iceland’s space heating needs are met by the direct use of geothermal energy.

Building on the Icelandic knowledge base, Geysir’s founders provide strong financial backup, significant investment knowledge, increased access to deal flow and experience and expertise in engineering, project management and construction. Geysir is equipped with highly capable management, relevant investment expertise and industry know-how. Geysir, through its founders, has access to world-leading partners, financial institutions, carbon credit mechanisms, tax credits, and the geothermal community. The company is privately held and its founders have a long-term view of the sector.

Expansion is planned through mergers and acquisitions and eventually the development of new projects in all areas of the geothermal value chain. Through direct investment, research shows that technology and know-how is more likely to stay in the host country even after the investor has gone.

Current Projects

Geysir was founded in January of 2007 and holds:

• 26.9% of geothermal developer Enex, whose predecessor was cofounded in 1969 by Iceland’s largest energy and engineering companies and the main energy research institutions. This former consulting firm is now an active developer of geothermal through the provision of solutions, plant design, project management and investment capacity.

• 33.3% in Enex China which jointly with Shaanxi CGCO (Sinopec) holds Shaanxi Green, which operates a district heating system in China with the potential to provide heating for 500,000 people. With the first phase completed, this project has the potential to become the world’s largest geothermal district heating system.

• 86% of Exorka, a knowledge-based firm aimed at improving efficiency in the generation of electricity with Kalina technology. Exorka builds on the experience of designing and learning from the first geothermal power plant utilising Kalina technology, a 2.1 MW plant in North Iceland built in 2000. Kalina technology uses an ammonia-water mixture for steam production, through a binary cycle. Exorka is currently developing four projects in Bavaria, Germany with a combined capacity of up to 25 MW electrical.

Energy production from fossil fuel is one of the chief contributors to climate change and energy demand in emerging markets is continually increasing, making the transfer of renewable energy technologies necessary. The quick and effective transfer of the newest geothermal technology, through foreign direct investment, is a chief goal of Geysir Green Energy.

W: www.geysirgreenenergy.com