SPX to Supply $100 Million in Critical Components for Five Geothermal Power Plants in Iceland

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Researched by Industrial Info (Sugar Land, Texas)--Icelandic power utility Orkuveita Reykjavikur is planning five new geothermal power plants at the base of the country's Hengill volcano. The Hengill plant currently in operation, and under expansion development, will generate 300 megawatts (MW) of electrical power and 400 MW of thermal energy when completed. The output will meet increasing demand in Iceland for power and hot water for space heating in the industrial and domestic sectors.

Power generation started at the plant in 2006 with two 45 MW turbine units. In 2007, a 30 MW low-pressure turbine was commissioned, and in 2008, two more 45 MW turbines fed by steam from Stora-Skardsmyarfjall Mountain were introduced. The hot water plant is expected to begin operating in 2009.

The SPX Corporation (NYSE:SPW) (Charlotte, North Carolina) will supply $100 million of critical components for the new geothermal plant building program. Under the contract, awarded by Orkuveita Reykjavikur at the end of May, SPX will supply a complete cold-end solution for the plants. Covered in the scope of the contract are engineering, design, manufacturing and installation of a steam condensing system utilizing SPX heat exchangers.

The new geothermal plants, using Iceland's accessible hot steam geyser sources, will have a total output of 225 MW.

Using procedures taken from the existing Hengill and Nesjavellir plants and the efficient use of resources in energy production ensures that the volume of greenhouse gases released will be extremely low compared with using fossil fuels. A completed plant will increase the country's CO2 emissions by 24,300 tons annually, representing a 0.74% increase compared with 2001. Silencers are installed at steam production wells to reduce noise.

Drew Landau, President SPX Thermal Equipment and Services, said at the contract signing that Iceland was a world leader in geothermal power and that SPX is pleased to help in the building of Iceland's energy infrastructure. He said the company is continuing its tradition of supplying optimized solutions for this type of severe duty application.

Orkuveita Reykjavikur extends power, geothermal-sourced water for heating and cold water from a ground water reservoir for consumption and fire fighting to 20 communities covering 67% of Iceland's population.

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