HD ehf signs equipment contract for expansion of Svartsengi geothermal, Iceland
The Svartsengi geothermal power plant in Iceland (source: HS Orka)
Carlo Cariaga
14 Mar 2024
HD ehf will be delivering and installing equipment for the ongoing expansion work of HS Orka at the Svartsengi geothermal power plant in Iceland.
Industrial and technical services company HD ehf. has signed an agreement with HS Orka for the delivery and installation of the equipment for the expansion of the Svartsengi geothermal power plant in Iceland, as well as a framework agreement for contractor services.
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.
Source: Mbl.is
