25.08.2022
HS Orka and Hydrogen Ventures sign a term sheet on hydrogen production in HS Orka's Resource Park.
HS Orka and Hydrogen Ventures Limited (H2V) have reached an agreement on energy prices and other terms for a hydrogen production in Iceland, which will be used to produce methanol in HS Orka's Resource Park.
The companies signed a Letter of Intent at the end of last year, and the agreement is a confirmation of the companies' ongoing work to establish the production. It is estimated that production can start at the turn of the year 2025/2026
H2V's power consumption is estimated at 60 megawatts from geothermal energy to produce green methanol, in addition to using the majority of the carbon dioxide released from HS Orka's operations in the process. The estimated investment is around 150 million euros, which corresponds to over 20 billion Icelandic ISK.
Green methanol is seen as an environmentally friendly energy source for the future, especially in marine transport and the fishing industry. If the output of the production were to be used domestically, the project would be an important step in bringing Iceland closer to its goal of carbon neutrality and independence of fossil fuels by 2040.
More than 80% of Iceland's energy consumption is based on renewable energy sources, primarily geothermal and hydropower. Infrastructure Development to produce green hydrogen and methanol can, in the opinion of H2V representatives, make Iceland a leading nation in the field of renewable and clean energy by replacing fossil fuels with renewable energy sources.
Horacio Carvalho, CEO H2V: „ Since we announced the project at the end of last year, a lot of work has gone in to make it a reality, and the demand for methanol as a fuel has increased. Our cooperation with HS Orka has been very good and we are excited to continue working with them. Iceland has set ambitious goals to reduce its carbon emissions, and we believe that the domestic use of methanol can play a key role in that.".
Tómas Már Sigurðsson, CEO HS Orka: „ The collaboration with H2V has been very productive, and the observations that have been made confirm that the resources offered in our Resource Park are a great fit for this kind of production. In addition to renewable energy, we can provide H2V with fresh water and carbon dioxide for their production.”
About HS Orka
HS Orka has been a leader in the production of renewable energy for over 45 years. The company employs a group of experts with extensive experience in their field. HS Orka owns and operates two geothermal heat and power plants and one hydroelectric power plant with combined installed capacity of around 200MWs.
Innovation and creative thinking have always been the basis of the company's activities and is the foundation of the Resource Park close to the capital area of Reykjavik, where various geothermal resource streams are utilized. Today, 11 diverse companies operate in The Resource Park, all of which make multiple use of the geothermal resource via direct connection to HS Orka's power plants.
About Hydrogen Ventures
Hydrogen Ventures is a subsidiary of Climate Change Ventures, based in the UK. The company focuses on the production of green H2 and synthetic fuels (green ammonia and green methanol) and has expertise in project finance non-recourse when structuring its dealflow.
The company currently has an important project pipeline amounting to ca. € 750 million, and is always seeking for new business opportunities.
For further information contact:
HS Orka
Jóhann Snorri Sigurbergsson
8559304
Hydrogen Ventures
Shona Woodfine
swoodfine@hydrogenventures.co.uk
+44(0)7791 874745