Icelandic State Considers Buying Stake in HS Orka Skip to content

Icelandic State Considers Buying Stake in HS Orka

Minister of Finance Steingrímur J. Sigfússon said his ministry is considering whether it’s possible for the Icelandic state to acquire a stake in Sudurnes energy company HS Orka, so that it will not go into the ownership of Canadian Magma Energy.

Harnessing geothermal energy in Iceland. Photo by Páll Stefánsson.

“It has not been discussed within the party [the Left-Green Movement, which Sigfússon chairs]. People are just looking into the matter,” Sigfússon told Fréttabladid.

The minister said the matter hasn’t been discussed within the cabinet either, although he did meet with the prime minister, minister of industry and minister of the environment when the idea was first mentioned.

Sigfússon met with CEO of Magma Energy Ross Beaty yesterday.

According to Fréttabladid’s sources, the opinion is widely held within the Left-Greens’ coalition party, the Social Democrats, and also within the majority of the city council that it isn’t possible for the state to acquire the share in HS Orka.

It is likely that the International Monetary Fund would criticize the acquisition.

The around 100 attendees of a meeting held in Grindavík in Sudurnes last night agreed to challenge the government and the Icelandic municipalities to prevent the sale of the share in HS Orka to Magma Energy, reports.

Click here to read more about Magma Energy’s interest in the Icelandic energy market.

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