Contact Information: For further information, please contact: Gudmundur F Sigurjonsson Phone +354 516 6000 Mobile: +354 8 49 49 60
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
| Source: Reykjavik Energy
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.