Icelandic bank releases 3rd annual U.S. Geothermal Energy Market Report

Islandsbanki and Sustainable EnergyThe Icelandic bank, Islandsbanki (formerly Glitnir) has issued its third annual U.S. Geothermal Energy Market Report in continuation of its research activities in geothermal energy. The report provides an updated overview on geothermal energy development in the United States, highlighting not only the increasing amount of activity in the sector, but also the elements that have helped spur the development.

In the U.S today there are around 144 geothermal energy projects in development with a combined capacity of up to 6,400 MW, which is an increase of about 60 percent compared to last year. Continue reading

Green energy research developing geothermal energy

geothermal energy blue lagoonAsbru has found a new partner in investment in regards to geothermal research which can help improve and develop green energy research. The Canadian geothermal company, Magma Energy Corporation has announced that they will invest in the Asbru partner companies of HS Orka and Geysir Green Energy based in Iceland.

Asbru is the new name of the former NATO military base next to the airport in Keflavik. After the NATO evacuation in 2006, the base was re-designed as a community of students and businesses. Asbru offers new aviation and clean energy related academic programs at Keilir University. Keilir is also one of the largest campuses in Iceland. Asbru also has other projects such as a health village, a green energy research center and Iceland’s first international data center. Continue reading

Glitnir U.S. Geothermal Energy Market Report

It is our pleasure to present our second annual U.S. Geothermal Energy Market Report. The overall development of geothermal energy is very positive in the US. The installed geothermal power generation capacity has increased by 4% to 2,958 MW. The overall number of projects has increased and projects currently underway would expand installed capacity in the U.S. by a 100-130% in the years to come.

Compared to last year the industry is better positioned and availability of drilling rigs has improved. The joint efforts of the Bureau of Land Management (BLM) and the U.S. Forestry Service to speed up the process for leasing geothermal resources on lands they manage will also have a significant impact on the industry.

Recent lease auctions by the BLM have shown the increasing interest in geothermal development and in developers’ confidence in the sector. On August 5, 2008 the BLM auctioned 35 parcels over leases on 105,312 acres for a total sales price of USD 28 million which is up from last year’s record of USD 12 million for 122,850 acres. This should increase the geothermal project pipeline in the U.S. even further.

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Glitnir advises Nevada Geothermal Power on financing for geothermal power plant

Glitnir Bank, a leading provider of financing and advisory services to the geothermal energy industry, announced this week that it has co-arranged a US$180 million loan for Nevada Geothermal Power with Morgan Stanley & Co.

Glitnir continues to lead the global financial community in support of the geothermal energy industry.

As a lead co-arranger with Morgan Stanley & Co., Glitnir was instrumental in closing a USD 180 million loan facility for Nevada Geothermal Power.

The deal allows the company to enter the construction phase of this 49.5 MW geothermal power project in Nevada. With the construction loan the company is now one major step closer to providing southern Nevada with much needed baseload power.

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Glitnir strengthens seafood team – new business directors in Chile and Peru

Glitnir strengthens its global network of expertise within the seafood industry by appointing two new business directors for Chile and Peru to be based in Santiago and Lima respectively.

Glitnir is applying for representative office licenses in Chile and Peru in order to follow up on the bank’s success in Latin America, and to provide better service for customers. Wilfredo Caceres is Glitnir’s new representative in Peru, while Vicente Perez joins Glitnir in Chile with responsibility for Glitnir’s operations in Chile, Argentina and Uruguay.

“To have people of their calibre joining the bank is another statement of Glitnir’s strength. This will not only build new opportunities for our business in South America, but also create opportunities in other regions seeking targets for European, US and Asian companies in South America”, says Jon Gardar Gudmundsson, Glitnir’s Managing Director for Asia & Latin America.

Fish meal and fish oil production is a growing industry in Peru, a country which has a long history as a fishing nation. Peru has experienced tremendous economic growth in the past few years, with more than a doubling of its GDP between 2003 and 2007. Glitnir assisted Peruvian company Copeinica with listing on the Oslo Stock Exchange in January 2007.

Peru also has a great potential for geothermal energy, which is another of Glitnir’s main areas of expertise. Although Glitnir’s main focus in the region in the near future remains on the seafood sector, there are also plans to tap into the geothermal sector.

Magnus Bjarnason, Executive Vice President of Glitnir, said that, “As a part of aligning Glitnir’s strategy, we feel it is important to have people on the ground in strategic markets. Our two new business directors are great assets to Glitnir’s international strategy and we welcome them on board the Glitnir team.”

Visit the Glitnir corporate website for further information on finance and the seafood industry.

Glitnir recognised for its geothermal energy activities

Nordic Bank GlitnirNordic bank Glitnir wins second prize at the Financial Times Sustainable Banking Awards.

Glitnir Bank made second place for the “Sustainable Deal of the Year” at the Financial Times Sustainable Banking awards which were presented in London last week.

Among speakers at the award ceremony were the Mayor of London, Boris Johnson and Barcleys Chairman, Marcus Agius. The CEO of the Financial Times, John Ridding, presented the awards.

Attending on behalf of Glitnir were; Alexander Richter, Director of Global Industry Research and Communication, Helgi Anton Eiríksson, EVP of International Banking Europe and Jonathan Byrne, Director of Business Management.

The ‘Sustainable Deal’ relates to a geothermal generating facility being developed in the Salton Sea geothermal field in California.

“This is a great acknowledgement for our work, especially when you consider how tough the competition was” said Alexander Ricther. “We were competing with large players such as Citi US, Merrill Lynch, Morgan Stanley and BlueOrchard Finance, but last the two jointly won the category. We have a very strong position in the US geothermal energy market and we intend to strengthen it even further”, said Mr. Richter.

According to the deal, Glitnir Capital Corp. provided a $15 million Senior Secured ‘Resource Verification Loan’ to the company Hudson Ranch. Alexander Richter said that Glitnir Bank was among the first financial institutions to offer this sort of financial product in the USA.

“Last year we provided Nevada Geothermal with a similar loan. The US Geothermal market is very interesting for us as we foresee considerable developments in the energy market especially regarding alternative energy resources are”, said Mr Richter. “Geothermal Energy is surly one of the alternatives. Glitnir’s position in the US geothermal industry is strong and the outlook is very good”.

Visit Glitnir Bank´s website at for more information on Glitnir and geothermal energy.

Bjørn Richard Johansen
Managing Director, Corporate Communications, Glitnir
Tel: +47-47 800 100

Glitnir shortlisted for Sustainable Banking Awards

GlitnirNordic bank Glitnir has made the shortlist for the 2008 FT ‘Sustainable Deal of the Year’ award – for the second time in a row.

The Financial Times and IFC, a member of the World Bank Group, recently announced the short-lists for the 2008 FT Sustainable Banking Awards, the leading global awards for sustainability in finance.

For the second time in a row, Glitnir was short-listed for the “Sustainable Deal of the Year”.

The awards, now in their third year, are to recognize banks and other financial institutions that have shown leadership and innovation in integrating social, environmental and corporate governance considerations into their operations.

This year the nominees were selected from a record 182 entries coming from 129 institutions in 54 countries. Other banks short-listed in this category were Merrill Lynch (carbon finance to reduce deforestation), Citi (financing for rural housing), BlueOrchard and Morgan Stanley (microfinance loans) and Calyon (solar thermal power plants).

The “Deal” is one example of Glitnir’s success in the geothermal industry’s financial sector in the United States, which is the biggest market in the world for geothermal energy. Glitnir Capital Corp. provided a $15 million Senior Secured “Resource Verification Loan” to Hudson Ranch I, LLC (borrower) a subsidiary of CHAR LLC, an electricity generation company based on geothermal energy.

“This is an important milestone for the Glitnir Energy Team in Iceland and the US and reflects how the Banks strategy within Sustainable Energy is starting to pay off. Glitnir Bank was among the first financial institution to offer this sort of financial products in the USA. Last year we provided Nevada Geothermal with a similar loan,” said Magnus Bjarnason, Executive Vice President of International Banking at Glitnir Bank.

“The US geothermal market is very interesting for us as we foresee considerable developments in the energy market especially regarding alternative energy resources are. Geothermal Energy is surly one of the alternatives. Glitnir’s position in the US geothermal industry is strong and the outlook is very good” Bjarnason added.

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Environment talks with Al Gore former US Vice-President

Environment talks with Al Gore former US Vice-PresidentAl Gore will be the keynote speaker at an open meeting on environmental issues to be hosted on April 8th in Reykjavik, Iceland.

The former vice-president of the United States and Nobel Prize winner is scheduled to visit Iceland on 7 – 8 April as a guest of Icelandic President, Olafur Ragnar Grimsson.

Larus Welding, CEO of Nordic bank Glitnir, says that the meeting with Al Gore is related to the bank´s overseas efforts to promote its expertise in the field of sustainable energy resources.

“Glitnir is at the forefront in international financial services for geothermal energy projects. We are already engaged in a number of exciting ventures in the United States with leading companies in this field. The Bank has obtained considerable attention among numerous parties who are participants in the public discourse on sustainable energy resources, one of them being Al Gore,” said Mr Welding.

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Icelandic geothermal office opened in California

The Icelandic President, Olafur Ragnar Grimsson, joined officials from the state of California and the city of Los Angeles to open the new headquarters of the Iceland America Energy company. The company is expected to be a leader for geothermal energy development in California using knowledge and expertise developed from over 70 years of harnessing the earth’s natural energy in Iceland.

Cur Robinson is the executive director of a non profit scientific and educational group based in California known as the Geothermal Resources Council. “It’s really kind of unusual when you have this small country that?s coming in and helping the United States develop this resource,” he said. “But they’ve been using geothermal in applied ways for several decades, very successfully. . . they have a fully developed energy economy and we don’t.”

The state of California is working towards using renewable energy for 20 per cent of its total energy needs by 2010 and it has chosen a good mentor for reaching that goal. Iceland uses renewable resources to power almost the entire country. Hydropower accounts for 73.4 per cent of the energy generated in Iceland while geothermal energy accounts for 26.5 per cent.

Iceland America Energy has already landed its first contract and will be supplying power to the city of San Francisco once its geothermal plants are built. The first well will be drilled next week to feed power into a facility which will be built near Truckhaven in Imperial County. The plant is expected to open in 2010.