The agreement between the two parties covers the following items:
Procurement and construction of platforms, stairs, pipe supports, and piping systems within the plant building;
Construction of a pump station at the cooling tower; and
Installation and assembly of drop separators, demisters, gas absorbers, cooling towers, and turbine equipment at Power Plant 7.
“The contract for the installation of hardware is the largest single contract ever made in the company’s history, and we at HD ehf. are extremely proud that HS Orka approached us and requested our involvement in this project,” said Þorvaldur Tolli Ásgeirsson, sales and marketing director of HD ehf. Work is expected to commence promptly with the project targeted for completion and handover by 30 October 2025.
Expansion work at the Svartsengi geothermal power plant broke ground in early 2023. The new power plant expansion, Svartsengi 7, will increase the total production capacity of the Svartsengi geothermal field to 85 MWe. It will utilize steam from older units more efficiently, allowing HS Orka to decommission the older, less efficient turbines.
Funding for the expansion comes from a combination of a new USD 61.9m CAPEX increase facility agreement from existing financiers and additional shareholder funding.
In the latter half of 2023, it was announced that Icelandic construction company ISTAK has started work on the new power station building.
