Icelandic energy companies merge

Reykjavik Energy Invest announced this week that it would merge with Geysir Green Energy to form a major company in geothermal energy development. After the merger, the energy giant will be worth ISK 65 billion (USD 1.1 billion, EUR 748 million).

The company will retain the name Reykjavik Energy Invest and will invest in and develop geothermal energy projects around the world.

Magnus Jonsson, Vice Chairman of Geysir Green Energy, said, “Our combined forces make us better equipped for growth on the international market and we believe this to be a strong step in the development of Icelandic global growth in the field of geothermal energy.”

The merger brings together a number of geothermal assets including a 48% share in Hitaveita Sudurnesja, an Icelandic energy company, a 66% share in Enex China, which constructs geothermal district heating plants, and a 20% share in Western GeoPower, a geothermal energy developer based in the US and Canada.

Reykjavik Energy Invest is the investment arm of Reykjavik Energy, an independent company owned by the city of Reykjavik.

Geysir Green Energy is a geothermal energy investment group founded earlier this year in Iceland. Shareholders include the FL Group, Atorka Group and Glitnir Bank.