Icelandic energy company HS Orka secures 40 billion krona in refinancing despite seismic threats to power plant

HS Orka, an Icelandic energy company, has secured approximately 40 billion Icelandic krona in refinancing from Icelandic and international financial institutions. This funding will be used for debt refinancing and ongoing development.

Despite seismic activity on the Reykjanes Peninsula threatening the existence of HS Orka’s power plant in Svartsengi, the company has managed to refinance. The CEO of the company, Tómas Már Sigurðsson, has stated that the situation has affected negotiations with lenders, both domestic and foreign, but the terms are acceptable.

Sigurðsson believes that the refinancing demonstrates that lenders have faith in the projects the company is currently undertaking and planning for the future. He added, “Svartsengi is one of four power plants we operate. So we are a larger company than just Svartsengi.”

Currently, the heat supply in Svartsengi, which is about half a century old, is undergoing reconstruction. Additionally, efforts are underway to increase energy production at the site.

The Svartsengi power plant is Iceland’s first mixed geothermal power plant where both electricity and hot water are produced. Many power poles in the vicinity of Grindavík have been affected by lava flow due to the seismic activity on the Reykjanes Peninsula.