Canadian Magma Invests in Iceland’s Energy Market Skip to content

Canadian Magma Invests in Iceland’s Energy Market

The board of Reykjavík Energy (OR) has decided to accept an offer from Canadian company Magma Energy in its share in Sudurnes energy company HS Orka after looking into offers from a number of other interested parties.

Harnessing geothermal energy in Iceland. Photo by Páll Stefánsson.

“We received other offers than from Magma Energy in the share of Reykjavík Energy in HS Orka,” CEO of OR Hjörleifur B. Kvaran told Morgunbladid. “Magma already held a share in HS Orka and had reviewed the company’s value very carefully.”

Magma Energy now holds a 43 percent stake in HS Orka, while Geysir Green Engery (GGE) holds a 56 percent stake in the company and the Sudurnes municipalities of Grindavík, Gardur and Vogar own one percent of shares.

“We want to develop HS Orka in such a way that it can tend to the projects which the environment here calls for—to harness energy for the community. We see opportunities in undertaking projects here and offer energy to the community at a competitive price,” said CEO of GGE Ásgeir Margeirsson, adding that there are no plans for HS Orka to undertake projects abroad.

Minister of Industry Katrín Júlíusdóttir said it is a positive development to have foreign investors participate in the Icelandic energy market where it has become difficult to finance production.

However, the minister emphasizes that the participation of private companies is limited to production and that it doesn’t extend to ownership of natural resources. “They cannot be sold, according to law,” Júlíusdóttir stated.

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