News
Collaboration of Exorka and Hekla Energy Signed: Drilling Projects Starting in Germany
Transportation of the new high-technology drilling rig of Hekla Energy to Exorka’s drilling site is now completed. The final testing and commissioning phase will be completed before Christmas. The drilling project will then start at the beginning of 2008. Directional drilling techniques will be applied in this project which allows all wells to be drilled from one location, which is environmentally preferred.The value of the Hekla-Exorka agreement is approximately 15 million EUR with scope to double in value if Exorka uses its option to work with Hekla for 6 additional wells.
Hekla Energy GmbH, the subsidiary of Iceland Drilling in Germany, was established last summer in continuation of Iceland Drilling’s acquisition of new, high-technology drilling rigs. They are constructed in Germany by Herrenknecht and are specially designed to drill deep wells for geothermal heat. The first rig will be taken into use in the above-mentioned project and has a lifting capacity up to 350 tons.
Electric Power Plant in Mauerstetten
Hekla Energy will drill the first three wells near Mauerstetten, (approximately 100 km south-west of Munich) where Exorka intends to construct its first high efficiency generation plant. This phase of the drilling project is estimated to be completed during the third quarter of 2008. Each well will be approximately 4,000 metres deep. At that depth, it is estimated that temperatures of approximately 125 °C will be found. Exorka will use this to produce electricity with Kalina technology. Geothermal generation of this kind produces no carbon emissions and is clean and environmentally beneficial.
Clean Electricity Generation
Phil Hutchings, CEO of Exorka, welcomes this important stage in the operations of the company in Germany. “The groundwork of our projects here started in 2005. There has been two years of intensive planning to get us to this stage. When all three wells have been fully tested and completed, the development and construction of the power plant will begin which we estimate will take about one and a half year. The electricity will replace the electricity which is presently produced by coal or gas and thus reduce the emission of greenhouse gases.
We are pleased to be working with Hekla Energy and Iceland Drilling, whom we regard as the premier geothermal drilling contractor in the world”.
Attractive Opportunities
According to Thor Növig , CEO of Hekla Energy GmbH, the agreement marks a turning point and new beginning as being the first project of Hekla Energy. In our ranks at Hekla Energy, backed up by Iceland Drilling, we have a broad range of highly qualified and experienced experts in the field of geothermal drilling. Combining our expertise with the high-technology drilling equipment from Herrenknecht, we have a winning formula in our hands. The strict official demands in Germany for employee safety and environmental responsibility are a challenge that we welcome as a test of our ability and ambition. We look forward to creating value for our customers and we are fully equipped for becoming a renowned name on the rapidly growing market for renewable energy in Europe.”