Turnkey Geothermal Contracts in Iceland

September 16, 2004 [SolarAccess.com] Mitsubishi Heavy Industries (MHI) and the German engineering company Balcke Durr has received a turnkey order to build two 40-MW geothermal power plants in Hellisheidi, Iceland. The contract is through the city-owned utility Reykjavik Energy, and this will be the eighth geothermal power plant consigned to MHI by the power provider. The plants will each consist of a 40 MW steam turbine, generator, condenser and cooling tower. The first unit is targeted for start-up in September 2006, with the second unit to follow in October. MHI’s will manufacture the turbines and generators, and Balcke-Durr will fabricate the condensers and cooling towers. The electricity generated will be supplied mainly to local aluminum refineries. Iceland is well suited to use of geothermal energy because of the numerous volcanoes there. Because of abundant water supply, however, the country relies on hydroelectric generation to meet approximately 90 percent of its power demand. The remainder comes mostly from geothermal power.

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