HS Orka acquires hydroelectric power plants in Northeast Iceland

HS Orka is Iceland’s largest privately owned producer of renewable energy and has been producing 100% renewable energy for over 45 years. It owns and operates two geothermal power plants, Svartsengi and Reykjanes Power Plant on the Reykjanes Peninsula, a hydroelectric power plant at Brú in Biskupstungur in South Iceland, and now Fjarðará Power Plants in Seyðisfjörður in Northeast Iceland. The company is owned by Jarðvarmi slhf., a group of 14 Icelandic pension funds, and critical infrastructure investor Ancala Partners.

HS Orka has enjoyed a close working relationship with the Fjarðará Power Plants since the beginning of production in 2009. Reservoirs are located in Heiðarvatn and Þverárlón in Fjarðarheiði which enable HS Orka to utilise the production of the power plants to meet peak demands from retail customers during winter. The production of the power plants is primarily intended to cater to the energy needs of retail customers. Jarðvarmi slhf. and Ancala Partners provided additional funding to support the acquisition. The acquisition between HS Orka and previous owner Kjölur fjárfestingarfélag ehf. was finalised on August 31, 2023.

Tómas Már Sigurðsson, CEO of HS Orka, comments:

“Fjarðará Power Plants complement other operations of HS Orka and our renewable energy power production. The power plants enable us to better serve our retail customers. We know these plants well and we have a history of successful collaboration with previous owners. The acquisition is also an important milestone for HS Orka as we have now expanded our operations to a new region, the Northeast of Iceland.”