ON Power signs Iceland Drilling for make-up well drilling in geothermal power sites

Drilling rig of Iceland Drilling on site at Hellisheidi/ Iceland (source: company)

Orka Náttúrunnar (ON Power) has signed an agreement for Járðboranir (Iceland Drilling) to drill eight production wells to support the production capacity of the Hellisheiði and Nesjavellir geothermal power plants in the Hengil area in Iceland. Drilling is scheduled to take place from 2025 to 2027.

Iceland Drilling will drill three wells in Nesjavellir, one in Hellisheiði, and four in Hverahlíð. The drilling of new production wells is necessary to compensate for the natural subsidence of high-temperature systems in the region. It is the nature of all high-temperature systems that their efficiency, both in terms of water and steam, decreases when they are put into use.

The project is also crucial to meet the growth in energy demand based on forecasts for population development in the Iceland capital. There are also prospects for a significant expansion of the electricity market in Iceland due to the goal of becoming carbon neutral by 2040.

“It is extremely important to continue to generate energy with the means we know. Orka náttúrunnar is an important producer of both hot water and electricity, and we want to be able to maintain an unimpaired service to our customers for the future,” said Árni Hrannar Haraldsson, Executive Director of ON Power. “Our cooperation with Járðboranir has been very good and we look forward to continuing it with the aim of maintaining the quality of life that Orka náttúrunnar creates for the people of the country.”

A crucial part of the tender for the drilling project was that the drill to be used must be powered by electricity. ON Power places great importance on executing the project in a responsible and environmentally friendly way. Thus, the Óðinn drill rig of Iceland Drilling was electrified for the project, which will save over two million liters of diesel.

“We at Jarðborun are extremely happy that this project is starting. The expertise that has been built up over the past decades at Járðborunur will be put to good use in these exciting holes that are about to be drilled,” said Sveinn Hannesson, CEO of Iceland Drilling. “We have had a long and successful partnership with ON and we expect it to continue in the coming years. Both companies are now taking time to prepare for these major projects that will begin in May 2025.”

The Hellisheiði geothermal power plant is also supplying power to the Mammoth direct air capture and storage facility by Climeworks, which started operations just recently.

Source: Orka Náttúrunnar