Climeon wins Heat Power module order worth 300 MSEK in Iceland


Climeon, a provider of clean electricity solutions, has won an order worth 300 MSEK from Iceland’s CP Energy to deliver 100 Climeon Heat Power modules to be installed in Iceland.

The project will be claimed as one of the world’s first distributed geothermal power solutions, the company said in a statement.

The value of the order is 30 MEUR in addition to that the order also includes services which adds up to a total order value of approximately 300 MSEK.

The modules will be distributed across 10 to 15 individual sites and installed over a period of 30 months. The total installation, providing 15 MW of electricity, is enough to power 2,500 households.

Climeon AB has agreed to provide financing for the first seven Heat Power modules to be installed under phase 1.

The modules will be installed and operated by the Heat Power operator Varmaorka.

Climeon’s Heat Power modules generate electricity from low temperature heat, e.g., from low enthalpy geothermal wells. The system is built up by compact, flexible units of 150kW electrical power that have no consumables and generate no pollution.

The first distributed power plant, phase 1, is expected to be delivered in the first half of 2018 and will consist of seven Heat Power modules.

According to Thomas Öström, CEO at Climeon, the order constitutes a break-through for Climeon AB. “Geothermal energy, especially when low temperatures can be utilized, has the potential to power the entire world´s energy needs many times over, and this order is a major milestone on that journey.”

In Iceland the geothermal energy potential is vast and has been used for many years, primarily to heat households.

Even though the energy is accessible in most parts of the country, most of the power production is centralized.

The transmission of the electricity requires investments and implies transmission losses. Further, due to the easily accessible energy, mainly through hydro powered facilities and geothermal technology, Iceland has one of the world’s lowest electricity prices – creating an unforgiving competitive environment.