Download The world has to act now on climate change or face devastating

Geysir Green Energy
Auður Nanna Baldvinsdóttir
Head of Marketing and Relations
June 16th, 2007
THE NEED FOR RENEWABLE ENERGY
Statements from the Stern Review:
DEM AN D FOR EN ERGY IS RISIN G
18.000
“The world has to act now on climate
change or face devastating economic
consequences”
17.000
16.000
M toe
15.000
14.000
13.000
12.000
11.000
10.000
2005
2010
2015
2020
2025
2030
“If no action is taken on emissions, there is
more than a 75% chance of global
temperatures rising between two and three
degrees Celsius over the next 50 years”
Source:W orld Energy Outlook 2006
— Demand for energy is rising
— Increased awareness of climate
change, sustainable development
and local pollution issues
Harnessing renewable energy sources
in a sustainable way is the the way of
the future according to the Stern
Review
OVERVIEW OF GEYSIR
Company information
— Founders
— Financing
— Board of Directors
Strategy and projects
— Focus areas
— Strengths and opportunities
— Current investments
About Geysir
ABOUT GEYSIR GREEN ENERGY
Geysir Green Energy was founded
early in 2007 by several
Icelandic investors
— FL Group, an investment company with
specific interest in the sector
— Glitnir Bank; a bank operating within
the renewable energy niche
— VGK Hönnun; a leading engineering
consulting firm in Iceland with
extensive expertise
Founding shareholders:
—
—
—
—
FL Group
Glitnir
VGK-Hönnun
TBA
35%
25%
10%
30%
The company aims to invest in
renewable energy with a specific
focus on geothermal energy
— Other renewables are not ruled out
— Utilising the relationship and expertise
of Icelanders within the segment
First round of financing of USD 100
million
— Completed in May
— Investors with access to deal flow and
expertise
INVESTMENT STRATEGY
Geysir Green Energy is seeking leading market opportunities in the
harnessing of geothermal energy, investing in the development and
construction of geothermal plants, acquiring geothermal plants
currently owned by power utilities and participating in the privatization
of energy companies all over the world.
Expansion is planned through mergers and acquisitions and the
development of new projects in all areas of the geothermal value chain
Exploration
Development
Construction
Operation
Investments
FOCUS AREAS
The map shows
high temperature areas
Geysir’s geothermal focus areas
GEYSIR’S STRENGTHS
Iceland is a leader in geothermal
energy and the company is able
to tap into local resources and
utilize the knowledge available
Supportive founders with a long
term outlook on geothermal
—
—
—
—
Strong financial backup
Investment knowledge
Access to deal flow
Experience and expertise in
engineering, project management
and construction
Capable management
— CEO with experience in the sector
— Board of Directors with relevant
investment expertise and industry
know-how
Access to world-leading partners
—
—
—
—
Financial institutions
Carbon credit mechanisms
Tax credits
The geothermal community
ICELAND | A LEADER IN GEOTHERMAL ENERGY
Iceland offers impressive statistics
when it comes to renewable energy
— Around 89% of district heating energy in
Iceland is geothermal
— Nowhere does geothermal energy contribute
as great a part of a nation’s energy supply
— Power supply from geothermal energy
sources increased tenfold from 1997 to
2007
— Substantial contribution to
 The national economy
 Air quality
 Social welfare
 Minimal emissions from the energy
sector
Geysir’s Projects
GEYSIR’S CURRENT INVESTMENTS
ENEX (26.9%)
— Founded in 1969 by Iceland’s largest energy and
engineering companies.
— Enex is an active participant in geothermal and
small to medium-size hydro energy projects.
— Largest shareholders: Geysir (26.9%),
Landsvirkjun (24.2%) and Orkuveita Reykjavíkur
(24.2%).
ENEX CHINA (33.3%)
— Joint project by Enex China, Shanxi CGCO Energy
Development Construction Co. Ltd (Sinopec).
— District Heating system with potential to provide
heating for 500,000 people (450 MW).
— Potential to become the world’s largest
geothermal district heating system- phase 1
ready
— Owned by Enex, Orkuveita Reykjavíkur and Geysir
Green Energy.
EXORKA (86%)
— Development of the Exorka technique started
in 1997, based on Kalina technology.
— The technique uses an ammonia-water
mixture for steam production, through a
binary cycle. The efficiency within a wide
temperature range is noticeably higher than
with other technologies.
— A 2.1 MW power plant in North Iceland
(2000).
— Now hold 4 concessions in Germany for 5-10
MW each.
— Germany has the highest wholesale
electricity price is in the world for
renewables, 20 US cents/ Kwh
MOST RECENT INVESTMENT: HITAVEITA SUDURNESJA
World leading geothermal operator for 30 years
Svartsengi Power Plant a technical breakthrough
— First geothermal CHP unit in the world
Transforming the traditional power plant into a “resource park”
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—
—
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Electricity, District heating, 150 MW
Water production and distribution
Blue Lagoon Spa, Restaurant and Health Clinic
Cosmetics/Personal Care, biotechnology research
New 100 MW power plant at Reykjanes in operation since 2006
Further expansion of power plants
— 150 MW by 2010
— 135 MW by 2014
— Mainly providing power to the planned Century Aluminium smelter at Helguvik
Further opportunities for power plant development in Iceland
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CURRENT PRIORITIES
Hitaveita Sudurnesja hf.
— Pending purchase of the 15.2%
previously held by the government
United States
— Agreement on joint venture with
American firm to build a power plant in
California
— Several similar projects under
consideration
The Philippines
— Cooperating with Reykjavík Energy on
plan to acquire stakes in companies as
well as individual plant in addition to
developing greenfield projects
Exorka ehf.
— Exorka recently gained more
production permits in Germany
— Drilling to start this year
— Merger pending with another similar
firm, sure to bring interesting
opportunites
PIPELINE AND OPPORTUNITIES
Current pipeline includes investment
opportunities within all areas of the
value chain
—
—
—
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Exploration / drilling
Development
Construction
Operation
Different types of projects
— High temperature
 Electricity generation
— Low temperature
 Direct use
 Electricity generation
Huge potential for further
development
— North America
— Asia
— Europe
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