Reykjanesbaer buys Land and Geothermal Rights Skip to content

Reykjanesbaer buys Land and Geothermal Rights

“Reykjanesbaer is purchasing land and geothermal rights in order to ensure that the resources remain publicly owned,” says Árni Sigfússon mayor of Reykjanesbaer. The board of HS Orka agreed yesterday to sell land and geothermal rights at Svartsengi to Reykjanesbaer, reports.

The Blue Lagoon at Svartsengi. Photo by Páll Stefánsson.

According to the agreement, Reykjanesbaer will acquire all shares owned by Geysir Green Energy in HS Veita. The municipality will own 66.7 % in the company. Geysir Green will purchase the share of Reykjanesbaer in HS Orka, and will thereby acquire a 66% share in that company. Also, Reykjanesbaer will buy land by Svartsengi for 940 million ISK (7.4 million USD) from HS Orka.

Last winter, the Sudurnes Heating Utility Company was divided into HS Orka and HS Veita. HS Orka deals with producing electricity, hot and cold water while HS Veita deals with its sales and distribution. HS Veita services for example Reykjanes peninsula and the municipalities of Gardabaer, Árborg, Westman Islands and Hafnarfjördur.

Árni says that with this deal, Reykjanesbaer is withdrawing from all competitive business operations, as well as ensuring that the geothermal rights stay within the public domain.

The town of Grindavík had already declared interest in buying the land at Svartsengi. Árni says that he is willing to discuss their involvement in the area.

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