Sweden's Climeon engages in 15-MW geothermal project in Iceland

Icelandic company CP Energy Holding has made a conditional order to Sweden’s Climeon AB regarding the delivery of equipment and services for a two-phase, 15-MW distributed geothermal power project.

Under the terms of the SEK-300-million (USD 37.3m/EUR 31.4m) order, Climeon will supply 100 units of its Heat Power modules for installation across 10 to 15 individual sites in Iceland over a period of 30 months.

In Phase I of the project, the Swedish firm will deliver seven modules to build the pilot plant in the first half of 2018. Climeon will assist CP Energy Holding with complete funding for this phase, including a suppliers credit and a promissory note.

In Phase II, Climeon will provide the remaining 93 modules for installation on new sites. CP Energy Holding, however, is yet to come up with a financing plan relating to that phase and expects to seek financing from private investors and banks.

The sales order is subject to certain conditions such as the execution of a pre-study, the signing of construction and commissioning contracts with third parties, and securing the needed approvals. All modules will be operated by newly-established Icelandic sector player Varmaorka.

The ultimate goal is to make it possible to install a large-scale distributed geothermal power plant without any subsidies or grants, Climeon noted.

(SEK 1.0 = USD 0.124/EUR 0.105)

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