Reykjavík Energy May Review HS Appraisement Skip to content

Reykjavík Energy May Review HS Appraisement

Reykjavík Energy (OR) may review the appraisement of Hafnarfjördur’s stake in Sudurnes Energy (HS), which OR agreed to purchasing last summer. OR wants to investigate whether recent changes may have affected HS’ value.

“We have to investigate whether Hafnarfjördur [a neighboring town of Reykjavík] has made any decisions that might change what we agreed to in the first place,” OR CEO Hjörleifur Kvaran told Morgunbladid.

Kvaran is mainly referring to the establishment of Sudurlindir, an energy coalition between Hafnarfjördur, Grindavík and Vogar with the purpose of “standing guard on the municipalities’ common interest” in regards to natural resources near Trölladyngja, Sandfell and Krýsuvík.

Kvaran said Hafnarfjördur needs to answer whether the purpose of Sudurlindir’s establishment had to some extent been to prevent energy from being harnessed in the aforementioned municipalities because it could affect the energy sale agreement for the planned smelter in Helguvík which was an extensive part of the appraisal.

“If that is the case, and I’m not saying that it is, it has influence on the appraisal. Then the prerequisites which we based the appraisal on are no longer relevant,” Kvaran said. “We just want to be sure about this before we finish the agreement with Hafnarfjördur.”

Hafnarfjördur Mayor Lúdvík Geirsson said he does not worry that the establishment of Sudurlindir will jeopardize the town’s agreement on the sale of its share in HS to OR. “It is irrelevant. We have an agreement and it has been certified.”

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