Source: Wasabi Energy
Wasabi Energy (AIM: WAS) is pleased to announce that its subsidiary, Global Geothermal Limited, has acquired the Orkuveita Husavikur (Husavik) geothermal power plant, located at the township of Husavik, in Northern Iceland.
This significant acquisition signals the commencement of Wasabi Energy's Kalina Cycle build-own-operate strategy and involves refurbishing the existing power plant to maximise power generation.
As the first geothermal Kalina Cycle power plant installed over a decade ago, the Húsavík geothermal power plant provides an important reference plant for the Kalina Cycle technology and also provides a strong platform for targeting larger, low enthalpy geothermal projects, globally.
Since Wasabi Energy announced its intention to acquire the Húsavík geothermal power plant in April 2010, extensive reviews of the project have been conducted, before a formal decision to acquire the Power Plant was made.
The Power Plant is not currently operational, and refurbishment activities will commence immediately after receiving formal approval for the acquisition from the Foreign Investment Review Committee of the Government of Iceland with power generation expected to resume in the second quarter of 2012.
Iceland has a strong history of innovation in geothermal energy utilisation, as evidenced by the world's first geothermal Kalina Cycle power plant being built in Iceland. Furthermore, Iceland has a strong geothermal services sector with many specialised geothermal contractors providing technical services to both established and emerging geothermal markets globally, particularly in the resource evaluation and engineering segments. For these reasons Iceland continues to be an ideal location for a geothermal Kalina Cycle reference plant.
"The acquisition of the Húsavík power plant is a key step in transitioning Wasabi Energy's Global Geothermal Limited subsidiary from purely a technology company, into a developer and operator of sustainable power generation assets, through our Kalina Cycle build-own-operate strategy,” said John Byrne, executive chairman of Wasabi. "The primary objective of the build-own-operate strategy is to develop an ongoing and profitable revenue stream through the sale of reliable and emission free power, whilst we establish the Kalina Cycle as a major power generation technology.”