SOURCE: Reykjavik Energy

September 11, 2007 15:46 ET

Leading Sustainable Energy Firm Reykjavik Energy Aims for US$800 Million Capitalization in Its International Business Development Arm

Former Glitnir Bank CEO Bjarni Armannsson to Chair Reykjavik Energy Invest

REYKJAVIK, ICELAND--(Marketwire - September 11, 2007) - The world-leading geothermal energy company Reykjavik Energy (Orkuveita Reykjavikur) has established Reykjavik Energy Invest (REI) to develop and invest in renewable energy opportunities with a focus on geothermal energy. The ambition of the business is to raise US$800 million in capital for business development and investments in the field of sustainable energy.

REI (www.reykjavikenergy.com) invests and develops renewable energy opportunities with a focus on geothermal energy. Bjarni Armannsson, the former Glitnir CEO, has been appointed Chairman of the Board. Bjarni is accompanied on the Board by Deputy Chairman Bjorn Ingi Hrafnsson and Haukur Leosson (The Reykjavik Energy Chairman). In addition, Gudmundur Thoroddsson has been appointed CEO of REI. Gudmundur has been the CEO of Reykjavik Energy since its establishment, but will focus on the operation of the REI subsidiary for the next months while on leave from Reykjavik Energy.

For the last decade, Reykjavik Energy has held a leadership position in the establishment of new geothermal power plants. At its Hellisheidi site, Reykjavik Energy is constructing the world's largest geothermal power plant. REI builds on Reykjavik Energy's decades of experience in harnessing the geothermal resource for both electricity generation and district heating. Reykjavik's geothermal district heating system is the world's largest and is the most significant contribution to Iceland's unique position. More than 70 percent of the country's primary energy is derived from renewable sources.

Key initial assets of REI will be equity holdings in several sustainable energy businesses, including shareholdings in Enex, Enex China, Galantaterm and Iceland American Energy.

Bjarni Armannsson, the new chairman, has invested ISK 500 million in the business.

Comments:

Mr. Bjarni Armannsson, REI's Chairman of the Board of Directors:

In the new millennium, the world's attention has turned to the possibilities of renewable energy. Diminishing carbon-based fuel reserves and pollution related to the burning of fossil fuels create an opportunity for investments in this area.

Geothermal energy is finally making its way onto investors' radar screens as well as onto the horizon of policymakers and world leader.

Iceland has reached unique levels in the utilization of geothermal energy, but the resource is underutilized globally. Energy from geothermal sources today amounts to less than 0.1 percent of the global world use. The mission of Reykjavik Energy Invest is to capture Iceland's expertise and knowledge to increase the use of geothermal energy globally.

Mr. Gudmundur Thoroddsson, REI's President and CEO:

Every week Reykjavik Energy receives visits from overseas companies and governments regarding possible geothermal ventures. It is timely for Reykjavik Energy to utilize those opportunities to establish its geothermal excellence abroad.

It is of great advantage for us that Bjarni Armannsson has agreed to join us. Our key initial task will be to raise further capital, with the goal of capitalizing the business with US$800 million. Bjarni's experience in the international finance world will be very valuable for us to achieve this goal.

Reykjavik Energy established Reykjavik Energy Invest in early 2007 under the strategy of forming a robust investment and development company with a focus on capitalizing abroad on the company's expertise in harnessing geothermal energy. Besides cash and equity in the companies mentioned above, Reykjavik Energy contributes to REI a considerable pipeline of projects at various stages of implementation. An agreement between RE and REI will insure further deal flow as well as REI's access to Reykjavik Energy's extensive expertise and personnel.

REI's strategy includes acquiring greenfield research and exploitation permits as well as acquiring already constructed geothermal power plants where operations can be improved. REI will also keep an eye out for opportunities in the direct use of geothermal energy for district heating.

For more information, call +354 516 6000, email info@reykjavikenergy.com or visit the company's web site at www.reykjavikenergy.com.

Contact Information

  • For further information, please contact:
    Gudmundur F Sigurjonsson
    Email Contact
    Phone +354 516 6000
    Mobile: +354 8 49 49 60