Aug 12 2010
It has hardly escaped the attention of anyone living in Iceland of late, that the Canadian geothermal company, Magma Energy, recently bought Geysir Green Energy´s (another geothermal energy company) stock in HS Orka (southwest-peninsula power company), making Magma a majority stockholder with 98,5% partnership. Magma´s purchase of GGE´s stock comes as no surprise whereas it´s been clear from the onset that Magma intended to claim majority ownership over HS Orka.
Small and Cute – For Concerned Icelanders
Ross Beaty, CEO of Magma Energy, has repeatedly been asked if he´s exploiting Iceland´s economic turmoil to claim control over the country´s resources, which he has always denied. On the 26th of August last year when he appeared on Kastljós, an ‘after-news special’ program on RUV (Icelandic National Broadcasting Association), Beaty also denied being interested in more power plants. “No, we´re focusing on this now. This is a small nation and it doesn´t serve our purposes to become to big”.
Because of exactly these comments, the announcement that HS Orka had sought permission to do test drilling in Hrunamannaafrétti, from Flúðir and into Kerlingarfjöll in search of geothermal areas garnered a considerate ammount of attention. Keep in mind that a research permission is not a permission to raise a power plant, but still, just drilling one test hole can cause a considerate ammount of damage on pristine land. Then, just a few days later, RUV news reported that Suðurorka, an energy company owned by HS Orka and The Icelandic Power Company (a consulting company), has plans of building a dam in Skaftárhreppur, the 150 MW Búlandsdam, over the next four years. HS Orka seems therefore to be on the warpath.