Iceland Drilling Company signs a new contract for geothermal project on St. Vincent, Caribbean

29th of November 2018

Signing in Reykjavik.  Front row, Sigurdur Sigurdsson CEO IDC, Gunnar Örn Gunnarsson COO RG and standing are from left, Garðar Sigurjónsson Project Manager IDC, Vilhjálmur Gudmundsson Director Business Development IDC, and Thorleifur Finnson, Project Manager SVGCL.

St. Vincent Geothermal Company Limited (SVGCL) and Jardboranir hf. (Icelandic Drilling Company, IDC) have today, November 29th 2018, signed a drilling contract for drilling 4 wells in St. Vincent and the Grenadines. The wells are intended to supply steam for the geothermal power plant SVGCL is constructing. The project aims to deliver a 10MW geothermal power plant to the Caribbean island nation of St. Vincent & the Grenadines (SVG), transforming its energy sector, reducing its dependency on imported diesel, and providing a new sustainable and affordable source of energy based on an indigenous resource. Once operational, the plant will supply substantially all of the country’s baseload power and bring renewable energy sources to ~73% of total power generation, well in excess of SVG’s Energy Action Plan target of 60% by 2020.

The commissioning of the plant is expected to be in approximately 2 years. The development of the plant has been ongoing for some time with Civil Works starting in Q2 2018 and turbines expected to be tendered out in 2019. SVGCL is a public-private partnership owned by the Government of St. Vincent and Reykjavik Geothermal, an Icelandic company focusing on geothermal power development with projects in East Africa, Mexico and the Caribbean.

According to Sigurdur Sigurdsson CEO of Jardboranir (IDC) this is the fifth drilling contract in the Caribbean, but Iceland Drilling have been working in the area since the year 2011, both in Dominica and in Montserrat. Iceland Drilling have broad range of highly qualified and experienced experts in the field of high temperature deep geothermal drilling. We look forward to creating value for our customer.

The project is being supported by several international organizations. The Caribbean Development Bank (CDB) is the lead financier, and is also coordinating funding from the international development community in the form of grants, contingent recoverable grants (CRG) and concessional loans. The Inter-American Development Bank, using resources from the Clean Technology Fund and the Global Environmental Facility has provided a CRG to mitigate risks associated with the drilling phase of the Project. The United Kingdom Department for International Development and the European Union Caribbean Investment Facility are also lead contributors to the project.

Other major sponsors include ADFD via IRENA, and the Governments of New Zealand, Japan and the United Arab Emirates. The project has also received assistance from international bodies such as CCI, RMI and Carbon War Room.

The owners’ engineering services are being provided by the engineering service company Mannvit.

Supervision and engineering for the drilling will be provided by Jacobs.


Iceland Drilling NZ and Ngawha Generation Limited sign contract for Ngawha Expansion project.

January 2018

Ngawha Generation Limited and Iceland Drilling NZ have started collaboration on a new drilling project in Ngawha, New Zealand, and an agreement to that effect was signed on the 21st of December 2017 at Top Energy Ltd offices in Kerikeri.

Top Energy owns the Ngawha geothermal power station, which has been operated since 1998.  Ngawha power station which is located 54 km north east of Whangarei currently has the capacity of producing 25 MWe or 70% of all electricity consumed in the Northland area.

The new drilling project involves the drilling of up to 6 wells, which is expected to add another 20-25 MWe to the current capacity.  Top Energy have already engaged ORMAT to build the new power plant which is expected to be commissioned in 2021.

Iceland Drilling NZ will transport their HH-220 Drillmec rig to Northland, New Zealand.  Spudding is expected to take place April/May 2018.

According to Sigurdur Sigurdsson CEO of Iceland Drilling Company (IDC). We are pleased to sign this contract and are looking forward to using our geothermal expertise together with our client.  This is IDC’s seventh drilling contract in New Zealand.

From the signing ceremony, left Gunnlaugur Sigurdsson from Iceland Drilling NZ and to the right Russel Shaw CEO Top Energy.




Iceland Drilling starts new geothermal drilling in Hellisheiði, Iceland

Iceland Drilling have mobilized their High-Tec drilling rig Bentec ER-350 to Hellisheidi area in Iceland and started drilling new additional geothermal wells for the company ON Power (ON).

November 2017

The contract which was signed in end of May this year involves the drilling of a total 7 firm wells and 3 optional wells. The average estimated depth of each well is from 2,500 to 3,000 metres.

The rig is using “green” electric power from Grid

Today’s drilling technology require lot of power which usually have been provided by using large amount of diesel to feed the multiple power generators sets. The developer, ON Power (ON) emphasized from the beginning to preserve the nature and use alternative approach powering the drilling rig. Instead of burning diesel, then environmental friendly electricity from the grid is being provided to mobile transformers skids, to power the rig equipment.  This saves huge amount of diesel providing direct economic benefit, not to mention large amount of CO2 emissions is prevented, or around 600 metric tons of CO2 per well.

The rig used in the above-mentioned project, has a lifting capacity up to 350 metric tons. Directional drilling technique will be applied in this project which is both economic and environmentally preferred. The expected heat at 2,500-meter depth, will be between 250 – 350 °C

The first drilling location is in Hverahlíd which is about 6 km away from current geothermal power plant in Hellisheidi. Other drilling will take place in Hellisheidi and Nesjavellir. This phase of the drilling project is estimated to be completed 4Q of next year 2018.

The exploitation of geothermal steam in Hellisheidi is not only used to produce electric power, but is also a large provider of hot water to the district heating distribution network in Reykjavik.



Iceland Drilling signs new drilling contract in Djibouti

June 2017

Electricité de Djibouti (EdD) has completed an agreement with Iceland Drilling Company (IDC) for geothermal drilling works in the Fiale Caldera area within the Lake Asal region of Djibouti.  The geothermal area is 100 KM west of Djibouti city.  The drilling contract was signed on the 21st of May 2017.The project involves the drilling and testing in 2018 of 2 geothermal wells to a depth of 2500 meters, and 2 optional wells.  The purpose of the drilling is to explore the geothermal field and to confirm the characteristics of the resource.  To conduct and manage such an important geothermal project EdD settled a Project Management Unit led by a Director from Société Tunisienne de l’Electricité et du Gaz (STEG), and, assisted by the Center for Studies and Research of Djibouti (CERD), the Office of Geothermal Development (ODDEG) and international and local consultants.

The Geothermal Consulting Company team lead by Geologica Geothermal Group (Geologica) and Veizades and Associates (Veizades) from the USA is supporting EdD in the design, procurement, implementation for geothermal resource development and feasibility study for geothermal power generation at Fiale Caldera.  The project is jointly financed by the Government of Djibouti and will receive grants and loans from the World Bank, AfDB, OFID, AFD, GEF and ESMAP

According to Sigurdur Sigurdsson, CEO of IDC, the agreement marks a new beginning as the first project for IDC in East Africa.  We look forward to creating value for our client in Djibouti.

According to Mr. Djama Ali Guelleh  Directeur Général of EdD,Geothermal energy is an important element to increase the country’s energy security of supply.  It is a base load supply of low cost environmental friendly energy.  We are pleased to sign this contract and look forward to working with Iceland Drilling Company.  Signature of this contract is a major milestone for this project and represents the hard work of the team

About Iceland Drilling Company

Iceland Drilling Company Ltd (IDC) is a leading company in the field of high temperature deep geothermal drilling and has many decades of experience in both high and low temperature drilling. The company operates internationally, and possesses a fleet of new hydraulic rigs and modern drilling equipment that can be transferred swiftly from one part of the world to another.

The company has well-grounded expertise in international deep drilling projects, with a record of several hundred high temperature geothermal wells.

The company’s operations have been in the Azores (Portugal), UK, Denmark, Ireland, Hungary, Germany, Nicaragua, Philippenes, Caribbean, (Dominica and Montserrat) Switzerland and in New Zealand.  Currently the company is working in Iceland, Caribbean, and Nicaragua.

About Electricité de Djibouti (EdD).

Established on January 21, 1960, EdD is a Public Institution with an Industrial and Commercial character placed under the tutelage of the Government of the Republic through the Ministry of Energy, in charge of Natural Resources. EdD has a legal monopoly on the transmission and distribution of electrical energy throughout the country.

Act No. 88 / AN / 15 / 7th L, promulgated on 03 March 2015, allows independent electricity producers to participate in the production of energy via a negotiated purchase contract with ESD. EDD must ensure the continuity and quality of service to the public electricity supply service.

About Geologica and Veizades

Geologica Geothermal Group, provides high quality global geothermal resource exploration, development, and assessment services and environmental consulting services for private and public sector clients located around the world.  Geologica‘s senior professionals have over 30 years, in disciplines related to geothermal resources from the initial stages of exploration, development, assessment, production and operations as well as environmental impacts and regulatory compliance.

Veizades and Associates is a geothermal engineering design firm specializing in design of geothermal surface facilities including fluid gathering systems and wellfield desgin, separation stations, gas management and abatement, balance of plant, control systems in addition to overal project management and construction and start-up oversight for geothermal power generation.  Veizades has been a leader in geothermal engineering since 1979.


Meet us at GEOLAC, Mexico April 25-27


Iceland Drilling Company (IDC) will be participating at the upcoming Geothermal Conference for Latin America and the Caribbean (GEOLAC).

If you will attend GEOLAC as well, we would greatly appreciate the opportunity to meet with you during the conference.  It would be interesting to learn about your current activities and future plans in the geothermal sector and to have the opportunity to introduce our drilling services for geothermal power projects across Latin America and the Caribbean.

We are interested to meet developers, investors and other players that could benefit from our Integrated Geothermal Drilling solution that will contribute to speed up your development.

From IDC there will be present:

Vilhjalmur Gudmundsson,

Director – Business Development Caribbean & Latin America,


Tel: +354 8585410



Iceland Drilling completes IDDP-2 well at Reykjanes

A significant milestone has been reached in the IDDP-2 Project at the Reykjanes Peninsula in Iceland as drilling was completed in mid-January at 4,650 meter depth. All of the initial targets were reached.  These targets were to drill deep, extract drilling cores, measure the temperature and search for permeability. Temperature at the bottom of the well has already been measured at 427 degrees Celsius, the pressure at 340 bars and drilling cores have been retrieved. It´s clear that at the bottom of the well the fluid has reached supercritical conditions and all the main objectives of the project have been achieved.

Never before has it been explored what lies beneath the geothermal field at Reykjanes.   HS Orka´s well RN15 at Reykjanes was utilized for the IDDP 2 project.  Well RN 15 was a 2,500 meter deep production well at the beginning of the project.  The first phase of the project was drilling to 3,000 meter depth and casie the well with a steel casing and cement it firmly in the surrounding formations. Never before has a well in Iceland been cased to this depth. From there the well was deepened below the current system around the well, were the deepest wells are around 3000 meter deep.

The best outcome of the project would be if the well could be used for energy production, this would open new dimensions in geothermal utilization if it would be possible to source supercritical fluid, which has a much higher energy content than conventional high-temperature geothermal steam. Based on the estimated pressure levels in the well it might be possible to produce 30-50 MW from this well, which is substantially more than from regular geothermal wells. Potential utilization will not be known until the end of year 2018 when all research has been conducted, but first indications are positive. If each deep well would produce more power than conventional geothermal wells, fewer wells would be needed for energy production which would lead to less environmental impact and lower cost than we know today.

HS Orka has lead the IDDP-2 project in close collaboration with other partners in the projects, in Iceland those are Landsvirkjun, Orkuveita Reykjavíkur and the National Energy Authority. Norwegian Statoil has also been an active participant in the project. The project has also received a substantial grants from the EU as well as other international science grants.  Drilling contractor was Jarðboranir, Iceland Drilling Company.

Source: HS-ORKA

HS-Orka, Statoil, IDC and other Icelandic partners drill the world’s hottest geothermal well.


IDDP (Iceland Deep Drilling Project) is the name of a scientific project which started in the year 2000. The first well was drilled in in Reykjanes by HS-Orka, 2004-2005 but the well had to be abandoned in 2006. Following that it was decided to move to another drilling field, Krafla in northern Iceland in the year 2009. After drilling down to 2104 mtr the operation  had to be terminated when the drill-bit  penetrated into a magma..

Now a new IDDP project has started, and we are happy to inform that Iceland Drilling formally started the drilling operation of a new IDDP well by the deepening existing well in Reykjanes on the 11th of August 2016.

The main purpose of the project is to find out if it’s feasible to extract energy and chemicals out of the hydrothermal systems at supercritical conditions. The idea is to drill deep enough, 5 km at least, into the roots of a conventional high temperature hydrothermal system to produce water at supercritical conditions and bring it to the surface as 400-600°C superheated steam which is then to be used for efficient electricity production n steam turbines.

“Put it more simply you can compare it to the Earth’s radiator system, and geothermal energy is a global resource.” –Head of Renewable research technology in Statoil.

The drilling itself is expected to be completed by the end of 2016 and after that the project will enter a two and a half year test period.

For more information and news on the progress please visit:

Drilling Project Starting in Montserrat

Iceland Drilling Company negotiates for a new geothermal drilling project in Montserrat

Drilling Project Starting in Montserrat

Iceland Drilling Company has reached an agreement with DFID (Department for International Development) for a geothermal drilling project in the Caribbean Island, Montserrat. The drilling contract was signed on 8th of April 2016.  The project involves drilling the 3rd geothermal well, but in the year 2013 two exploration wells were drilled giving around 2 MWe.

The objective drilling the third well, is to reach geothermal steam, enough to feed into a 3-5 MWe wellhead power plant. Iceland Drilling will be using one of its Drillmec HH-220 rig, which will be mobilized from Philippines to the Caribbean island. The target is to drill down to 2500 mtr.


Clean Electricity Generation

The overall objective is to replace electricity which is presently produced by using fossil fuel and thus reduce the emission of greenhouse gases.


More information

Vilhjalmur Gudmundsson

Tel +354 8585410



Landsvirkjun og Jarðboranir hf. undirrita samning um boranir á Norðausturlandi

Landsvirkjun og Jarðboranir hf. hafa undirritað verksamning um borun allt að 10 gufuhola á Norðausturlandi. Verkið kemur einkum til vegna gufuöflunar fyrir 2. áfanga Þeistareykjavirkjunar, en til stendur að taka hann í notkun á 2. ársfjórðungi 2018. Á Þeistareykjum er tiltækt gufuafl í núverandi borholum sem jafngildir ríflega 50 MW rafafls og nægir það fyrir 1. áfanga virkjunar. Stefnt að því að nýjar holur skili að minnsta kosti sambærilegu afli. Samningurinn er einn umfangsmesti borsamningur sem Landsvirkjun hefur gert á undanförnum árum, en hann hljóðar upp á rúmlega 3,3 milljarða króna.

Hörður Arnarson, forstjóri Landsvirkjunar:

„Það er fagnaðarefni að hafa náð samningum við jafn öflugan aðila og Jarðboranir um boranir vegna gufuöflunar við Þeistareyki. Samningurinn er mikilvægur þáttur í uppbyggingu virkjunarinnar, en framkvæmdin er viðamikil og hefur gengið vel til þessa.“

Sigurður Sigurðsson, forstjóri Jarðborana:

„Þetta er afar ánægjuleg niðurstaða fyrir Jarðboranir enda er um að ræða stærsta útboð jarðhitaborana á Íslandi seinni ára. Það skiptir miklu máli fyrir félag eins og okkur, þar sem sveiflur geta verið miklar, að landa langtímaverkefnum. Verkefni þetta er því mjög mikilvægt fyrir fyrirtækið og tryggir samfellda starfsemi á Íslandi til viðbótar við erlenda starfsemi félagsins. Jarðboranir og Landsvirkjun hafa átt farsælt samstarf í yfir 50 ár og er þetta verkefni einkar ánægjulegt framhald á því.“

Landsvirkjun vinnur nú að uppbyggingu 90 MW Þeistareykjavirkjunar, en vinna við uppbyggingu stöðvarhúss og lagningu veitumannvirkja hófst á liðnu sumri. Áætlanir gera ráð fyrir að byggingu mannvirkja ljúki í árslok, en þá koma inn á vinnusvæði verktakar sem setja upp vélar og rafbúnað. Stefnt er að því að hefja prófanir á búnaði virkjunar strax í júní 2017 og að fyrri aflvél hennar fari í rekstur í október sama ár.

Vistvænn Þór borar eftir orku á Reykjanesi

HS Orka hf. og Jarðboranir hf. hafa undirritað verksamning um boranir vegna gufuöflunar fyrir jarðvarmavirkjanir HS Orku á Reykjanesi.  Samningurinn tekur til borunar á þremur borholum með möguleika á fimm holum til viðbótar.  Að undangenginni verðkönnun sem HS Orka réðst í reyndist tilboð Jarðborana hagstæðast, því var ákveðið að ganga til samninga við fyrirtækið um verkið.

Það er sérstaklega ánægjulegt við samstarfið að borinn Þór sem notaður verður við borverkefnið er alfarið knúinn með raforku sem framleidd er á vistvænan hátt í orkuverum HS Orku.  Við þetta sparast vel á annað hundrað þúsund lítrar af jarðefnaeldsneyti á hverja borholu, sem er gríðarlega mikilvægt í umhverfislegu og efnahagslegu tilliti. Read more