Ancala-backed HS Orka acquires Múlavirkjun

Tómas Már Sigurðsson, CEO of HS Orka, welcomes the milestone, noting it is the company’s first power plant in West Iceland:

“We know Múlavirkjun well and know that we’re taking over a well-run operation. We’ve had a successful partnership with the previous owners, and we will do our best to continue our good relationship with the community of West Iceland.”

Múlavirkjun channels water drawn from the source of the Straumfjarðará river as it flows from lake Baulárvallavatn and lake Hraunsfjarðarvatn. Three local farmers were behind the original project: Eggert Kjartansson in Hofsstaðir, Ástþór Jóhannsson in Dalur, and Bjarni Einarsson in Traðir.

HS Orka has managed all of the plant’s production from the outset and has also purchased all of its energy output.

The acquisition adds to HS Orka‘s diversified renewable energy portfolio comprising the Svartsengi and Reykjanes geothermal power plants, together with additional hydropower plants across the country. Collectively, HS Orka‘s portfolio provides over 250 MWe of installed generation capacity. The company also produces hot and cold potable water and is progressing a pipeline of additional geothermal and hydropower development projects across Iceland including at Krýsuvík, one of Iceland’s largest and most strategically important geothermal fields.

HS Orka is owned by Jarðvarmi slhf., a group of 13 Icelandic pension funds, and leading infrastructure investment manager Ancala.