HS Orka is the leading private electricity generator in Iceland and the third largest energy producer in the country.

The company has been producing 100% renewable energy for over 45 years. It owns and operates two geothermal plants, Svartsengi and Reykjanes, with a combined capacity of over 200MW.

The company also has three hydropower plants with a combined capacity of over 20 MW and operates a water and district heating supply business. Its revenues are underpinned by long-term power purchase agreements, significant customer diversification and low customer churn.

Enhancing renewable energy generation

Ancala invested in HS Orka in 2019 alongside a consortium of Icelandic pension funds to help the business enhance its existing sites and expand its footprint across Iceland. Through our network and market knowledge, we developed a strong relationship with the existing shareholders to secure preferential access to the opportunity. As part of our partnership with the consortium, we agreed a comprehensive governance framework in advance of completing the investment to ensure alignment.

Following our investment, the Ancala team has worked closely with the business to deliver a range of initiatives that have increased its combined gross capacity by almost 30%. This includes supporting the development and deployment of industry-leading technologies which help its Reykjanes power plant optimise the output from existing boreholes. Ancala has also helped the business finalise the development of its hydro power plant in South West Iceland and, in 2023, acquire two hydroelectric power plants in North East Iceland. HS Orka is currently expanding its Svartsengi Power Plant to increase production capacity by a further 22 MW.

A hub for innovation

HS Orka has also developed a leading Resource Park concept where companies can set up operations in close proximity to HS Orka to benefit from the company’s electricity as well as the byproducts of the geothermal process, including heat, water, geothermal liquids and gases. The Resource Park has become a hub of collaboration and innovation, attracting biotech, agriculture, leisure and tourism companies, helping to generate investment, create new employment opportunities and support the circular economy.

Ancala continues to work closely with the business to provide even more green energy to Iceland.