Alterra reports "remarkable" results from deep drilling in Iceland

Canadian renewables company Alterra Power Corp (TSE:AXY) said today that its subsidiary in Iceland has successfully completed deep drilling at its Reykjanes geothermal field, achieving “remarkable” early-stage results.

HS Orka has finalised hole IDDP2 at a record depth of 4,650 metres (15,260 ft), with initial well readings, specifically a temperature of 427 degrees Celsius and 340 bars pressure, indicating supercritical conditions at the base of the well.

If the well proves to be suitable for power generation, it may produce up to 30 MW-50 MW of output, Alterra said, adding that the electricity will be directed to HS Orka's Reykjanes plant. The final production potential will be known in late 2018 at the earliest.

"We expect the final down-well temperatures to be much higher than 427 degrees Celsius, which could lead to production capacity of several regular geothermal wells," said Asgeir Margeirsson, CEO of HS Orka.

The Icelandic firm led the deep drilling programme in collaboration and joint funding with Norway’s Statoil (NYSE:STO), two other Icelandic sector players and the Icelandic National Energy Authority.

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