© Mr. Hreinn Hjartason
JBIC conducted a buyer's credit agreement (export loan) with Landsvirkjun (LV), the largest state-owned power company in Iceland. The loan is intended to provide financing for LV to purchase machinery and equipment related to geothermal power generation from FUJI ELECTRIC CO., LTD. and other companies for the construction of a new geothermal power station (installed capacity: 90 MW) in Theistareykir, northeast Iceland. This loan marks JBIC's first financing provided to a company in Iceland. The project is expected to further enhance the wide range of cooperation in the power infrastructure sector between Japanese companies and LV, which owns hydro, geothermal, and wind power generation facilities, as well as a majority in the transmission grid, and generates about 70% of Iceland's electricity.
Iceland supplies most of its domestic electricity by renewable energy. Furthermore, with its competitive cost power supplies, the country actively attracts foreign enterprises in power-intensive industries. The project is expected to increase business opportunities for Japanese companies, who boast advanced technologies and hold approximately 70% of the global market share of turbines for geothermal power generation.