Sweden-headed cleantech developer Climeon AB has announced that it has entered into a collaboration with Icelandic CP Energy Holding ehf on a conditional order to supply 100 Heat Power modules to Iceland as part of the world's first distributed geothermal power projects. The companies aim to make it possible to install a large scale distributed geothermal power solution without any subsidies or grants.
Estimated to be worth around EUR 30 million, the order also includes services and is subject to certain terms and financing being acquired. According to a statement, the collaboration entails Climeon supplying and installing 150 kWe Heat Power modules at 10 to 15 individual geothermal sites across Iceland over a period of 30 months.
In a first phase, Climeon has agreed to provide financing for the first seven Heat Power modules expected to be delivered during the first half of 2018. The modules will be installed and operated by the Heat Power operator Varmaorka.
Varmaorka is a newly established Icelandic company focusing on geothermal development, harnessing low and medium enthalpy geothermal resources for the generation of clean and renewable electricity.
Thereafter, provided inter alia that phase 1 is successfully completed and financing can be obtained, Climeon is expected to deliver an additional 93 modules under phase 2, as construction is initiated on new sites.
Geothermal energy, especially when low temperatures can be utilized, has the potential to power the entire world´s energy needs many times over, and this order is a major milestone on that journey, said Thomas Öström, CEO at Climeon.
Unique competitive environment
The situation in Iceland is unique. The geothermal energy potential is vast and has been used for many years, primarily to heat households. Although energy is accessible in most parts of the country, most of the power production is centralized. The transmission of the electricity requires investments and implies transmission losses.
Further, due to the easily accessible energy, mainly through hydro powered facilities and geothermal technology, Iceland has one of the world’s lowest electricity prices – creating an unforgiving competitive environment.
Being able to provide a competitive power solution in a market with the world’s lowest energy prices, gives us great assurance that our technology will be commercially viable in any geography. We are also happy to help the Icelandic community as this project will create jobs and provide locally produced clean electricity that meets the growing demand, remarked Ruben Havsed, Head of Geothermal Sales at Climeon.
Climeon’s Heat Power modules generate electricity from low-temperature heat. The system is built up by compact, flexible units of 150kW electrical power that have no consumables and generate no emissions.
