Sweden-based waste heat to energy technology developer Climeon AB has announced that it has signed an agreement with Iceland-based energy utility Varmaorka to almost double an existing order for its Heat Power modules to a total order value of about EUR 65 million.
In September 2017, Climeon revealed that it had won an order for 100 geothermal power plants from Varmaroka with an order value of just over EUR 30 million. Now the Icelandic company has signed an agreement to almost double the original order to 197 modules with a total order value of about EUR 65 million, excluding service costs and software licenses.
The potential of geothermal energy on Iceland with Climeon’s technology is greater than we thought a year ago. During the year we have secured several new sites, and we, therefore, want to increase the speed of our rollout and secure delivery of modules to us, said Ingvar Gardarsson, Chairman of the Board of Varmaorka.
The expansion of the order is made using a financing solution from Baseload Capital Sweden. An important prerequisite for financing has been that the Heat Power modules are standardized and provide predictable revenue flows.
Climeon’s goal is to become the world’s number one climate solver by selling, producing and delivering Heat Power modules. The deal in Iceland shows that through small-scale distributed geothermal energy we can create large-scale electricity production for communities and countries, said Thomas Öström, CEO of Climeon.
Varmaorka’s order increases to 197 Heat Power modules from the previous 100. The modules will be placed in about 20 locations and will be delivered in groups of 2-15 units over a period of 36 months through June 2021.
The first delivery consisted of four modules and was delivered to Flúdir on southern Iceland earlier in June this year. The production of three additional modules for the next site has begun during the summer for delivery in the fall.
Iceland has among the lowest electricity prices in the world, but locally produced electricity can be a key enabler for local communities to grow around the country. Climeon’s plants produce electricity from hot water locally and at a competitive price around the clock, all year round.
