News

An agreement has been made between Exorka GmbH and Hekla Energy GmbH, a newly established subsidiary of Iceland Drilling in Germany, on overseas drilling projects. The projects involve the drilling of six very deep geothermal holes in South-Germany. The estimated depth of each hole is between 4,000 to 5,000 metres. Directional drilling will be used which is both economic and environmentally sound. The value of the agreement is about 1,5 billion ISK which will increase to 3,0 billion ISK if the buyer takes advantage of the provision on extending the project to 6 additional holes.

Hekla Energy will drill the first three holes in Mauerstetten, which is approximately 100 km south-west of München, and where Exorka intends to construct its first electric power plant. The power plant will be based on the so-called Kalin technology which involves electric energy production by the cooling of hot water.

Attractive Opportunities

According to Bent S. Einarsson, CEO of Iceland Drilling, the agreement marks a turning point as being the first project of Hekla Energy. “Our former experience of marketing and outsourcing in the Azores Islands and elsewhere is of great value, but our advance on the big German market marks a totally new beginning. Hekla Energy is fully equipped for becoming a renowned name on the rapidly growing market for environmentally sound and renewable energy in Europe and we are looking forward to using our expertise together with our new high technology equipment. Marketing Icelandic knowledge in the field of geothermal heat and making a niche for it abroad is not only an idea, but a tangible export commodity no less than fish and aluminum.”

The subsidiary, Hekla energy GmbH, was established in the summer of 2007 in continuation of Iceland Drilling’s acquisition of new high technological giant drills. They are constructed in Germany by the company, Herrenknecht and are specially designed to drill very deep holes for geothermal heat. The first drill will be taken into use in the above-mentioned project in Mauerstetten. It will be the most powerful one in the fleet of the Iceland Drilling Group and its lifting capacity is up to 350 tons. Transportation of drilling equipment to the construction area will start this months and the construction project is estimated to begin at the beginning of next year.