HS Orka and Ístak have signed a construction agreement in relation to expansion and improvement of the geothermal power plant in Svartsengi. The first concrete work for the foundation of the new plant took place last week. In addition, Ístak will be responsible for coordination and safety issues on site. After completion, it is estimated that Svartsengi’s production capacity will increase by approximately one-third.
The project, SVA7, involves replacing older production units with new ones that will improve resource utilization and increase the plant’s production capacity up to 85 MW. Today, installed capacity in Svartsengi is estimated to be 66 MW. The contract is worth ISK 2.6 billion, but the total cost estimate is around ISK 12 billion. The entire SVA7 project is similar in size to the expansion of HS Orka’s Reykjanesvirkjun, which was put into operation earlier this year. It is expected that about 100 people will be involved in the SVA7 project at its peak.
According to Sunna Björg Helgadóttir, EVP of Technical Services, the project is progressing well. “Groundbreaking for SVA7 took place in December last year and the earthworks followed immediately after. They were completed in the spring. The project management has been working on purchasing long lead items such as generator, cooling tower, condenser, and gas exctracting system. The concrete work for the new plant began in mid-September.”
Birgir Þór Birgisson, Head-Project Manager for SVA7, says the process of preparing and finalizing contracts is on schedule. “Delivery times for important equipment are long as to be expected. There are still some aspects of the project that have not been finalized, but we aim to complete all contracts in the coming few months.”
In general, priorities in the energy production industry are changing so that all efforts are made to better utilize resources that have already been developed. The expansion of Reykjanesvirkjun and operations in Svartsengi are examples of HS Orka’s intentions of making the best use of its resources in a sustainable manner.
