Covering the Globe: Mitsubishi, Reykjavik Energy going global with GT development

In Japan and Iceland, Mitsubishi Heavy Industries (MHI) and Reykjavik Energy (Orkuveita Reykjavikur: OR) announced an agreement between the companies to jointly develop geothermal energy projects worldwide, particularly in Africa, Latin America and Asia. A memorandum of understanding was signed in Tokyo by Guolaugur Sverrisson, Chairman and Hjorleifur B. Kvaran, CEO of OR and Ichiro Fukue, Senior Executive Vice President of MHI.

The agreement brings together two geothermal powerhouses, who, one report states, intend to capture 50% of the global geothermal market by 2014. OR has been building, operating and managing geothermal power plants since 1990 and MHI says it is “the world’s foremost manufacturer of geothermal power generation equipment”. The two companies have been doing business together since 1978. The combination of their technologies and know-how will be a force to contend with.

OR has been promoting the use of geothermal energy use globally and has already begun development activities in Africa, the Middle East and elsewhere. Now, the two companies will collaborate in activities involving identification and verification of geothermal power generation potential, project launch support, development and supply of major equipment, preparation of power plant operation and management guidelines.

MHI and OR will also collaborate in green energy projects within Iceland, including production of synthetic fuel as a clean alternative fuel for transportation such as ships, and the establishment of an infrastructure for verification testing of electric vehicles (EV). These projects are part of Iceland’s various initiatives aimed at establishing a zero hydrocarbon fuel emissions society by 2050.

MHI singed an earlier memorandum of understanding with Iceland’s government together with Mitsubishi Corp. in September of 2008, which was when it first decided to contribute to Iceland’s clean energy policy. Since then MHI has cooperated in studies of dimethyl ether (DME) production from gas associated with geothermal power generation and the EV infrastructure. The current cooperation will further accelerate these initiatives.

MHI has delivered geothermal power generation equipment to OR for two decades. To date MHI has delivered or received orders for a total of 15 geothermal power plants for Iceland, including 13 units to OR, and has delivered more than 100 units globally.