Geothermal Development Exporting Knowhow in the Geothermal field

Geothermal Development Exporting Know-how in the Geothermal field March 16 2006 3/3/2021 London 2006

Geothermal Development Did you know? That we are Europe’s largest geothermal and hydro developer • For the last 20 and foreseeably for the next 20 years. We have a work force of 400 experts • 100 geoscientists plus 300 specialized engineers. Iceland runs the UNU Geothermal program • Network of 340 fellows from developing countries 3/3/2021 London 2006

Geothermal Development What are we doing? In Iceland Harnessing 2, 000 MW geo+hydro electrical power for the last 3 and next 10 years. For 3 new and 2 enlargements of aluminum smelters. 5 new geothermal plants and 4 enlargements 3 -5 new hydro plants 3/3/2021 London 2006

Geothermal Development What are we doing? In Iceland 3/3/2021 London 2006

Geothermal Development What are we doing? In Europe 5 to 8 geothermal power plants in Hungary and Germany District heating systems in the new EU accession countries, Slovakia, Hungary, Poland… Under preparation: • Hydro project in Albania 3/3/2021 London 2006

Geothermal Development Bratile Albania Area Population (2003) GNI per capita (2003) Installed capacity Where-of hydro 28. 700 km 2 3, 2 million 1. 740 $ 1. 600 MW 1. 500 MW Reservoir area Reservoir volume Gross head Rated discharge Average discharge Dam height Dam volume Headrace tunnel Installed capacity Energy production Estim. Construction cost 3/3/2021 2, 3 km 2 80 Gl (80 Mm 3) 145 m 57 m 3/s 28, 5 m 3/s 110 m 2, 5 million m 3 3, 1 km 2 x 35 MW 250 GWh/a 105 -110 M€ London 2006

Geothermal Development What are we doing? In the Americas • 7, 2 MW hydro plant in Greenland • 8 MW binary plant being delivered to La. GEO in El Salvador • 150 MW plant in California, PPA under negotiation • 20 MWel CHP, PPA under negotiation in Unalaska 3/3/2021 London 2006

Geothermal Development Greenland 7, 2 MW hydro plant Qorlortorsuaq Co Investor Landsvirkjun (National Power) 3/3/2021 London 2006

Geothermal Development El Salvador • Size: 8 MW • Type: Binary plant • Client: La Geo 3/3/2021 London 2006

Geothermal Development Xianyang China • Co investors Glitnir and Orkuveita Reykjavíkur • District heating, first stages $60 mil. • Heating for up-to 4 million inhabitants • Joint venture Enex-China, CGCO & IFC 3/3/2021 London 2006

What can we do? Geothermal Development $$$ • Build geothermal plants for as low as $1, 850/k. W • Generate and sell electricity for 24/7 use for 2, 0 -2, 5 cents/k. Wh • Deliver the turnkey expertise from surveying to billing for energy • Cost of electricity and heat among the lowest in the world 3/3/2021 London 2006

Geothermal Development Attracting power intensive industry • 350, 000 tons, Fjardaral, Alcoa (2007) • 170, 000 tons expansion Nordural, Century (2008) • 260, 000 tons expansion ISAL, Alcan (2011) • 250, 000+ tons green field North Iceland, Alcoa ? ? ? • 250, 000 tons green field Helguvik, Century ? ? ? 3/3/2021 London 2006

What do we do? Geothermal Development Differently • • Intensive cost optimization Separate design and procurement Locally acceptable job packages Fast-track i. e. simultaneous design and building • Used to work in remote low-service areas 3/3/2021 London 2006

We invest Geothermal Development Cooperating with local partners • Small to medium sized hydro projects (20 -300 MW). • Geothermal plants and binary stations • Direct utilization of geothermal (for instance district heating). 3/3/2021 London 2006

Geothermal Development 3/3/2021 London 2006

Geothermal Development Shareholders of Enex: 1. 2. 3. 4. 5. 6. 7. 8. 9. Landsvirkjun Orkuveita Reykjavikur Jarðboranir Hitaveita Suðurnesja Glitnir ÍSOR Nýsköpunarsjóður VGK Norðurorka 3/3/2021 10. 11. 12. 13. 14. 15. 16. Hönnun Fjarhitun VST Rafhönnun Almenna Rafteikning VSÓ + 26 minni hluthafar London 2006

Closing remarks • • Geothermal Development Started in 1969 New boost 2001 New CEO 2003 Just beginning • Thank you for your attention! 3/3/2021 London 2006

Electricity Generation by. Geothermal Sources. Development 1983 -2010 GWh/a 18. 000 Hydropower 16. 000 Oil 14. 000 Geothermal 12. 000 10. 000 8000 6000 4000 2000 3/3/2021 0 '83 '84 '86 . '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 London '08 '102006

Geothermal Development Geothermal power generation 3/3/2021 London 2006

Reykjanes Geothermal Development • Reservoir 290 to 320°C • 100 MWel. • 1. 850 $/k. W • On schedule • On budget • On fast track 3/3/2021 London 2006

Geothermal Development Hellisheidi I. III. IV. 90 MWel 30 MWel 90 MWel 400 MWth • • • On Budget On schedule Fast track 3/3/2021 London 2006

Geothermal Development 3/3/2021 Vatnsfell 90 MWe Hydropower station 2001 London 2006

Geothermal Development National Power Company • Operates 12 hydro-electric and 2 geothermal plants • Produced 7. 5 TWh in 2005 • Installed capacity 1, 212 MW • Under construction 690 MW • Planned for commissioning in 2010: 330 MW • Annual turnover: $200 -250 million 3/3/2021 London 2006

Geothermal Development Reykjavík Energy • Operates one 120 MWe geothermal plant • Operates 850 MW district heating system • Under construction 120 MWe geothermal • Plans for commissioning in 2010: 200 MWe • Annual turnover: $200 -250 million 3/3/2021 London 2006