Übersicht
Development of an existing geothermal field and construction of a new geothermal power plant with a capacity of 90 MWe. The project is located 30 km south-east of Husavik. It is intended to provide additional supplies of electricity to meet the projected growth in electricity demand in the region. The first unit is intended to supply a new silicon metal plant while the remaining capacity will be sent to the national power grid.
The project consists of the design and construction of a 2 x 45 MWe geothermal power plant, along with its steam-gathering system, and wells in the north-east of Iceland. The exploration wells show good prospects. The power plant will provide electricity to a new industrial plant and support local economic growth.
The project has been subject to a full environmental impact assessment (EIA) procedure in accordance with national legislation (Icelandic EIA Act no. 106/2000). The project would fall under Annex II of the EIA Directive if it was located inside the EU.
The environmental impact assessment was performed and completed in 2010 with the planning agency's positive opinion following public consultation.
The main environmental risk to the project relates to geological hazards (volcanic eruptions and earthquakes), while the main concerns from the project are related to noise during construction and impact on a protected lava field and nature conservation area, as the access road will cross it. Additionally, the project will emit carbon dioxide and hydrogen sulphide. Mitigation measures in line with industry practice are proposed.
Iceland, as a signatory to the European Economic Area (EEA) Agreement, has adopted EU procurement legislation. The Bank will require the promoter to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.