Coal, Gas, Hydroelectric

VA Tech Hydro wins €60m contract in Iceland

7 November 2003 – VA Tech Hydro has been awarded a contract to supply the turbines, generators and electrical equipment for the Kárahnjúkar power plant in Iceland. The power plant project is managed by Landsvirkjun, Iceland’s national utility company and is valued at approximately €60m ($68.7m).

VA Tech Hydro’s scope of supply for this project comprises six 130 MW high-head Francis turbines and six synchronous generators. With an installed capacity of 780 MW and a harnessed flow rate of 160 m 3/s the plant will have an electricity generation of 4450 GWh per year (corresponding to the annual energy consumption of approx. one million households). The Karahnjukar facility is designed to supply electricity to an aluminium smelter with a capacity to produce 320 000 tons of aluminium per year.

The Kárahnjúkar power station is located in the eastern part of Iceland, approximately 670 km from the capital Reykjavik and will boost the installed hydropower capacity of Iceland by almost 70%. This project is one of the biggest investments in Iceland’s history with the overall sum (hydro and aluminium) amounting to approximately €2.5bn. This is the second large-scale order from Iceland for VA Tech Hydro. At the end of the nineties the company supplied the electromechanical equipment for Sultartangi HEPP.

A high degree of customer satisfaction combined with confidence in the quality of VA Tech’s hydropower plant products were decisive factors in awarding another contract to VA Tech Hydro. With this project VA Tech Hydro has proofed itself once again as a competent and experienced partner for sustainable solutions.

The project is to be completed by July 2007.