OREANDA-NEWS. The European Investment Bank (EIB) has signed a EUR 125 million loan agreement with Landsvirkjun, the National Power Company of Iceland, to finance a new geothermal power station and its geothermal wells at Theistareykir, near Husavik in north-eastern Iceland.

The financing will be used to support the design, construction and operation of a new 90 MWe geothermal power station and its geothermal wells, operated by the National Power Company of Iceland. The project will be located at Theistareykir, some 30 km south-east of H?savik in the northeast of the country, where nine wells with over 50 MWe capacity have already been drilled and tested.

Vice-President Cristian Popa, responsible for EIB-operations EFTA-countries, commented: “Iceland is in a very special position when it comes to renewable energy and it’s great to see how Landsvirkjun is making the most of it. The EIB is glad that it can support this important energy project, which also highlights how the bank supports the energy sector around Europe. The Icelandic expertise in this area is state of the art and serves as a blue print for geothermal projects around the globe."