Australian Wasabi Energy Buys Iceland Power Station Skip to content

Australian Wasabi Energy Buys Iceland Power Station

Global Geothermal, a subsidiary of Australian Wasabi Energy Ltd., has acquired a geothermal power station with a production capacity of 2 MW with so-called Kalina technology owned by Húsavík Energy (OH) in north Iceland.


A geothermal borehole. Photo by Páll Stefánsson.

The power station, which produces heat in addition to electricity, is currently shut down but is scheduled to reopen in the first half of 2012, reports.

However, the acquisition has to be approved by the Icelandic Committee on Foreign Investment before it can be carried through, as Morgunbladid was informed by the Ministry of Economic Affairs.

Managing director of OH Gudrún Erla Jónsdóttir said the acquisition agreement includes that Global Geothermal will undertake repairs and restoration work of the power station. OH will buy the station back after Global Geothermal has demonstrated its production capability.

Jónsdóttir stressed that the acquisition agreement doesn’t involve the sale of natural resources and that OH is not up for sale either.

Wasabi Energy invests in companies that are likely to provide solutions to the world’s energy and environmental problems.

The power station in Húsavík is the first in the world to produce geothermal energy with Kalina technology which produces electricity from low-heat geothermal areas, on which Wasabi Energy holds a patent.

However, resilient failures have made the power station’s operations difficult ever since it was launched in 2000. It hasn’t produced any energy since January 2008.

Jónsdóttir said Global Geothermal is interested that energy production is re-launched at the OH power station and will therefore provided its subsidiary with a review of its equipment and conduct repairs to make it fully operational again.

She explained that it isn’t good for Global Geothermal’s image that the station isn’t producing any electricity. speculated that Icelandic musician and activist Björk would not be in favor of the acquisition plans, given that she is participating in a campaign aimed at preventing Canadian Magma Energy’s takeover of an Icelandic energy company and in making sure Iceland’s natural resources are in the public’s ownership.

Click here to read more about her campaign.

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