Reykjavik Geothermal closes $20 million Series B funding round to support Iceland projects

Reykjavik Geothermal (RG) has announced that it has completed a Series B financing round of up to USD 20 million (approx. ISK 2.4 billion). The funding will support the company’s geothermal development projects in Iceland, and is only the first phase of the company’s broader capital plan.

The round was led by Innviðir fjárfestingar II slhf., an infrastructure fund managed by Summa rekstrarfélag hf., with participation from existing shareholders. Discussions are ongoing with co-investors regarding their potential participation in the financing. 

Funding from this round will be part of a wider investment plan that will support the company’s pipeline of geothermal projects in Iceland. This includes the Bolaalda project, where a facility has been proposed to supply 100 MWe of power generation capacity and 133MWth of heating capacity. RG has been actively progressing the project since acquiring the reconnaissance license in 2018, with ongoing geoscientific, environmental assessment, planning and zoning work in close collaboration with the local authority of Ölfus municipality and the national authorities. The total investment for the project is estimated to be up to USD 450 million (approx. 60 billion ISK).

RG estimates that the total investment that will be needed for the projects currently under development will amount to at least ISK 80 billion (approx. USD 660 million) over the next four years. The company is also involved in early-stage geothermal projects in the Middle East (through TAQA Geothermal) and in the Canary Islands (through Energía Geotérmica de Canarias).

“It is a significant milestone for the company to complete this financing round in support of the substantial growth ahead, both domestically in Iceland and internationally. RG has established itself as a leading international geothermal developer, and having strong institutional investors such as Summa support us is a vote of confidence that will be invaluable as we move forward,” said Magnús Dagur Ásbjörnsson, CEO of Reykjavík Geothermal.

“At the same time, it represents recognition of the Icelandic energy sector as a whole that institutional investors back our expertise and believe in its ability to generate long-term value, both in Iceland and abroad.”

“Investment in Reykjavík Geothermal aligns well with our strategy of participating in the development of infrastructure that supports sustainable economic growth,” added Sigurgeir Tryggvason, CEO of Summa Rekstrarfélag. 

“The company’s planned projects are substantial and may have a significant impact on energy security and value creation in Iceland in the coming years. RG possesses specialized knowledge and experience that are critical to the successful development of geothermal projects both in Iceland and internationally. We believe the company is well positioned to execute these projects and create long-term value for investors and society as a whole.”

Source: Reykjavik Geothermal and Fossar