Icelandic Government Wants GGE’s Share in HS Orka Skip to content

Icelandic Government Wants GGE’s Share in HS Orka

The Icelandic government, with the Ministries of Finance and Industry in the lead, wants to make sure that the Icelandic state and pension funds acquire the majority stake in energy company HS Orka by taking over Geysir Green Energy’s shares, now that Reykjavík Energy (OR) has accepted Canadian Magma Energy’s offer and Magma is set to hold a 45 percent stake in HS Orka.

Energy harnessing in Iceland. Photo by Páll Stefánsson.

According to Morgunbladid’s sources, there is significant pressure from the grassroots of the Left-Green Movement that its chairman, Finance Minister Steingrímur J. Sigfússon, should do everything in his power to ensure that the majority of shares in HS Orka goes into public ownership, looking towards GGE’s 55 percent stake in the company.

The Ministries of Finance and Industry announced yesterday that a discussion group representing the Icelandic government, municipalities, pension funds and other involved parties had been established to work on this matter.

One of the projects in preparation, according to Morgunbladid’s sources, is establishing an Icelandic investment fund, which will be owned by the pension funds and be responsible for investing in HS Orka and possibly additional investments in the energy sector.

The board of OR accepted Magma Energy’s offer on buying OR’s stake in HS Orka yesterday, provided the Reykjavík City Council and its Executive Committee approve of the acquisition.

Yesterday, Magma also acquired Hafnarfjardarbaer municipality’s stake in HS Orka, which combined with OR’s stake, amounts to 32 percent of shares in the company. If the acquisition goes through, Magma will hold a 45 percent stake in HS Orka.

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