The Beginning
Talks regarding the possibility of utilizing geothermal energy for the residents of Suðurnes hit full swing during the fifties - and there were discussions on the necessity of all municipalities joining hands in realizing such a project. In the year of 1953, Keflavík's budget took into account a 20.000 ISK proposal, which was used to research the possibility of such a heating plant. From 1954 until 1956 the research fund money granted by Keflavík was 30.000 ISK, which was lowered to 15.000 ISK in 1957. During a town council meeting in Keflavík, on the 26th of May 1959, a committee was chosen to keep researching the possibility of a district heating plant in Keflavík. Their first meeting was held shortly after, or on the 8th of June. A heating plant committee for Njarðvík was chosen later that year. These committees met with Gunnar Böðvarsson, director of Jarðborar Ríkissins (The Drilling Company of Iceland, a former government enterprise), and with Þorbjörn Karlsson, engineer, who had been hired before by the heating plant committee of Keflavík. A few years later, in 1963, additional research was carried out by the American military forces, which were then based on Miðnesheiði. This area was compared to Reykjanes and Stapafell area; in these areas it seemed drilling would provide sufficient hot water.
The town council of Grindavík, in 1969, decided to carry out its own geothermal research in Svartsengi, especially focusing on heating homes in Grindavík. Two holes were drilled 5 kilometers north of Grindavík, near Svartsengi, in 1971 and 1972. At first the holes which had been drilled, one being 240 meters and the other being 403 meters, seemed to very promising, however two major problems were discovered. The first problem was that the water was too hot, it was high temperature area: and at a depth of around 1 km the heat was around 200 Celsius. Secondly, the water that came out of the drilled holes was salty, around 2/3 parts salt. Because of the high salt content and high temperature of the water, it was not possible to utilize the hot water as was then done in Reykjavík and in other parts of the country. Heat exchange methods had to be developed to utilize the geothermal energy.
In January of 1973 Orkustofnun (National Energy Authority) completed a rough draft of plans for a geothermal energy plant in the Svartsengi area. The conclusions drawn from that plan were deemed very positive and further research was pursued, which Orkustofnun carried out for the entire area. Two holes were then drilled into the earth, one hole was 1.713 meters deep and the other was 1.519 meters deep. Further research was also carried out to deduce how large this "hot water pocket" was. The data from that research estimated the total area to be around 400 ha at a depth of 600 meters - however there was a marginal deviation in determining the size of the total area due to the high content of saltwater near the "hot water pocket", because the salt in the subterranean water decreases the reliability of the research methods, as well as decreasing the temperature of the water.
The founding of Hitaveita Suðurnesja
In a meeting of all the municipalities in Suðurnes on September 10th 1973, three board members were unanimously eleceted to prepare the establishment of the Suðurnes Heating Plant and handle the preparation and construction of a district heating plant in Svartsengi. The elected individuals in the committee were Alfreð G. Alfreðsson, head of the local goverment in Sandgerði, Eiríkur Alexandersson, head of the local government in Grindavík and Jóhann Einvarðsson, mayor of Keflavík. This committee began preparations for founding the company and they selected the social center Festi in Grindavík, on the 15th of December in 1973, as a venue for the process. A temporary committee of seven individuals was also elected, and on the 17th of January this committee selected a board of executives, consisting of the same individuals selected for the Hitaveitunefnd Suðurnesja (Suðurnes Heating Plant Committee).
After these preparations the founding of Hitaveita Suðurnesja was put into law by Alþingi (The Icelandic Parliament) on the 18th of December 1974, and confirmed by the President of Iceland on the 31st of December that same year. (Law nr. 100 from 31st December of 1974.) The first article of this law is as follows:
"The purpose of this company shall be to harness geothermal energy in Svartsengi in proximity to Grindavík or in other spots in Reykjanes based on efficiency and convenience, as well as to lay pipelines to the urban areas of Suðurnes. Hitaveita Suðurnesja should also construct boiling plants if deemed necessary to maintain operational security".
When the company was founded the shares in the company were split up, with 40% of its shares owned by the government because the American military on Keflavík Naval base was also in the energy distribution area. The rest, or 60% was to be owned by the seven existing municipalities in the area and to be split up according to the number of residents, as recorded on the 1st of December 1974, in each municipality.
The first board meeting of Hitaveita Suðurnesja was held on the 13th of February in 1975 at Þórshamar. As mentioned above the board of directors included: Alfreð G. Alfreðsson, local head of government in Sandgerði, Eiríkur Alexandersson, local head of government in Grindavík and Jóhann Einvarðsson, mayor of Keflavík, who was elected chairman of the board. On the behalf of the government there was Ólafur G. Einarsson, member of Parliament (Alþingi) nominated by the then Minister of Finance, and Þóroddur Th. Sigurðsson, hydro-energy distribution director, nominated by then Minister of Industry.
One of Hitaveita Suðurnesja's first projects was to procure the land that was to be utilized and built on as well as obtaining the rights to distribute geothermal and fresh water. Dicussions with landowners were initiated in January of 1974, which concluded with an agreement made on the 22nd of July that a court of arbitration would decide the price of the land and the geothermal energy rights. The court completed its proceedings in January of 1976 and its decision was that the price for these rights in total should be 87.7 million ISK, which in 1999 was around 95 million ISK.
The final meeting held by the board of directors of the Hitaveita Suðurnesja with the landowners and the lawyers of both parties was held on the 25th of June in the Trade School of Keflavík. According to one of the board members, Alfreð Alfreðsson, the local head of government in Grindavík, the deliberating parties were in two separate rooms and in two separate sides of the school as well. However, the lawyers were in rooms in between and they delivered proposals and counter proposals between the two parties. As the night slowly proceeded this process kept going on back and forth, until the periods between pauses grew longer - as did the waiting period accordingly.
Both parties had agreed on finishing the negotiations at that meeting session, thus the meeting would not be adjourned until an agreement was reached - even if it would take all week. The board members of Hitaveita Suðurnesja did not sit by idly while waiting, or as Alfreð says: "Of course, the teenagers that passed the school were curious, especially when seeing the school was lit up around two in the morning. Their curiosity did not cease both when they glanced into the windows and saw us, board members, on the floor. We were casually dressed playing a coin game. One of the municipality's parliament member, along with the mayor of Keflavík and Grindavík and I included. In another corner of the schoolroom they saw the distribution director, Þóroddur, relaxing with his hands in his pockets in a yoga position. They (the teenagers) could barely believe their eyes".
What kind of meeting was this supposed to be - and what was the meaning of this? Distinguished gentlemen of the society, crawling on all fours and standing on their heads during the middle of the night. And they try to say we shock them! Nonsense! Nonetheless, we made no attempt to try and explain what these teenagers had seen, as it would have proven difficult. The teenagers just went their way in disbelief - we on the other hand managed to finish the negotiations during the night". Around three thirty in the night, both parties agreed to let court decision decide the value of the land and all rights accordingly.
1975
September 1st 1975, the first employee of Hitaveita Suðurnesja was hired. It was Ingólfur Aðalsteinsson, who later became senior executive of the company and later it's CEO until the first of July 1992 when he retired. The first projects carried out by Hitaveita Suðurnesja, in October of that year, were a distribution system in Grindavík, a conveying pipe from Svartsengi to Grindavík. Holes were also drilled to search for cold water and a thermal exchange plant was built to handle all of Grindavík's hot water needs.
1976
1976 was a banner year for Hitaveita Suðurnesja. The first two construction phases of the distribution plant for Grindavík and its supply pipeline was completed. The first construction phase of the distribution system was completed mostly in Njarðvík and Keflavík. ?In November the same year, a temporary station near Svartsengi opened, and on the 6th of November the preheated fresh water was pumped into the first houses of Grindavík, after the social center of Festi had its heat turned on during a ceremony attended by many people. A speech was given, during the ceremony, to commemorate the first hole being utilized, by the mayor of Grindavík, Eiríkur Alexandersson, who was also one of the board members of Hitaveita Suðurnesja: "I will never become so old or senile that I can forget what happened when the first hole was utilized on the 19th of December 1971. Around the hole was a rather large gathering of people: this included people from the municipality, employees from the Energy Institute of Iceland - and if I remember correctly 2 or 3 geologists along with myself of course. Everybody was amazed, and held their breath because of the anticipation. Two fully suited employees from The Energy Institute walked down the stairs of the "drilling cellar" and began turning the hole "on". At first there was this small whistling sound - then a boom which gradually became so loud and terrible that some of the people began distancing themselves from the column of steam that had arisen a few meters into the area; it was large and fierce and the noise kept growing louder until it finally happened. Now, I know what happened although I had not the faintest idea then - the hole gave way as it is called in the business. Not only did steam rush out but rocks and other debris as well. Then we heard more large thunderous booms. During the next seconds I was astonished and had started to run away from the area without realizing it. Slowly, it dawned upon me what had happened so I slowed down, thinking, "I have made a fool of myself". However, after looking around I noticed everybody else had been running and they were now slowing down and everybody had stopped. At first everybody was a bit sheepish and embarrassed but quickly returned back to the holes, which now had stabilized and spewed normal white tinted steam. Fortunately, no one got hurt in all the excitement. I sometimes think that during this great commotion the history of heating plant in Svartsengi began - a beginning that few could emulate. During that moment, I think that everybody involved realized that to tame such powerful forces of nature you definitely need a coordinated effort of many. This is simply a short version of the events, three years later Hitaveita Suðurnesja began after laws were passed in Alþingi". Before the year was over, the total amount of users in Grindavík was 76. These customers bought 292-minute liters. The first price list was given out that year and the rate of minute liters was fixed at 25 ISK. The offices of Hitaveita Suðurnesja were at Vesturbraut 10a in Keflavík and a warehouse was rented in Grindavík, along with another warehouse at Brekkustíg 36 in Njarðvík, which later became the headquarters of the company. During that time, there was an office in Landsbanki, located in Grindavík where denizens of Grindavík could find out more about the heating plant and where connection rates were paid as well. The second employee of the heating plant began his duties on May 1st, however at the end of year the employees were 5, two part-time and a cook in Svartsengi. ?"The canteen in the energy plant was well equipped. A microwave oven was bought - a very new commodity in those days. It was considered a very necessary item back then - and when the food was stuck in the microwave oven the employees called it "shooting the food". The CEO once came along with some distinguished guests for a tour of the energy plant; he wanted to be a good host and thus offered them food in the canteen. They were delayed for a while and when they finally came their food was cold. A girl working in the canteen did not consider it a problem and said to the guests, right after handing them their plates: " Just grab what you want on your plates, I will just head on into the kitchen and "shoot them".
1977
The largest project of this year was the construction of a main pipeline from Svartsengi to Njarðvík. On the 30th of December, the Minister of Industry Gunnar Thoroddsen, officially opened the pipeline by turning the water valve on. The chairman of the company, Jóhann Einvarðsson, when recalling how Mr. Thoroddsen had a bit of a struggle with the water valve in the "News Supplier" (the news paper of the company) in December 1988: "I remember when the Minister of Industry, Mr. Gunnar Thoroddsen, turned on the water in the area - and when Mr. Gunnar asked: "Should I turn to the right?" - and I answered immediately: "Yes, of course!"
The construction of the distribution systems in Njarðvík and Keflavík was well under way and water was supplied for a few homes before the end of the calendar year. Energy plant 1 was built and production line 1 was taken into use. A conveying tank for Grindavík in Selháls was also built, cold water holes where drilled and a main pipe line from them to the power plant was constructed.
Hitaveita Suðurnesja had 320 users that year that bought a total of 1.014 minute liters of hot water. The number of employees was 14, two security guards as well as a cook in Svartsengi.
1978
During this year quite a bit of construction was done; including the construction of service house in Svartsengi and the installation of production line 2 in energy plant 1. For the service house a large reception hall was built, where tropical vegetation and trees were planted; thus the reception hall received the name: "Ape Garden"
In Keflavík the distribution system pipe construction phase was already into the third, fourth and fifth phases; in Grindavík and Njarðvík the construction was in its third phase, while in Garður and Sandgerði construction of the 1st phase of the distribution system was half way through.
Construction of the supply pipelines was in its final stages; 80% of Sandgerði and Garðar supply lines were done and 5% of Vogar supply lines. Facilities at Brekkustígur 36 in Njarðvík were bought as a warehouse and the upper floor was used as the offices of the company. By the end of the year, Grindavík had almost been entirely connected and it had about 402 users with 1.466 minute liters; in Njarðvík there were around 313 users who bought 1.1.83 minute liters, and in Keflavík had 932 users who bought 3.105 minute liters. The first house connected in Keflavík was the elementary school, which was connected on the 19th of January. December 8th the elementary school in Sandgerði was also connected to system. On the 17th of August Jóhann Einvarðsson, then a member of the board of directors, signed a contract with the American military about its purchase of hot water supply for Grindavík radar station.
In April one of the company's most important milestones occurred when electrical power production began in the plant when two 1MW AEG steam turbines were started. Part of the electricity, 1.4 GW per hour, was for use in the plant while 0,3 GW per hour was sold to consumers.
Hitaveita Suðurnesja employed 17 people that year, 2 were part-time and 3 worked in the canteen.
1979
Production lines 3 and 4 in energy plant 1 were completed, a new pumping house for the fresh water in Gjá was built and plans for the construction of energy plant 2 began.
An agreement was made on a new 6 MW electrical power plant in Svartsengi, in addition to the two 1 MW turbines that were already in use.
All conveying pipes and distribution systems in the municipalities were completed except for in Hafnir. Water distribution began in Garður on the 15th of June and on the 7th in September in Vogar.
The total amount of users was 2.813 and they bought 9.185 minute liters of water. Electrical power production that year was 6,95 GWh, with 2,3 GWh being sold to the distribution net.
By the end of the year. Hitaveita Suðurnesja employed 19 people, 2 part-time and 3 in the canteen.
1980
The pumping station in Fitjar was completed, and so were Energy Plant 2 and the electrical power plant in Svartsengi. After a legislation in Alþingi (nr. 26/180) was passed, Hitaveita Suðurnesja had permission to increase the electrical energy plant capacity by 6MW, build new conveying lines and so forth. With the new 6MW Fuji steam turbine energy production began on the 20th of December. New holes were drilled and they were called 8, 9, 10 and 11. They proved to be quite productive with the older holes, 1, 2 and 4 having become useless; and with the new holes being drilled the estimated steam power needs of the plant, 369 kg/sec along with 100% of the reserve power needs.
The Offices at Brekkustígur 36 in Njarðvík were also completed and taken into use in March. That year, Albert Karl Sanders, the CEO of the board of directors, also secured a deal with the American military regarding hot water distribution - a business deal that was greatly beneficial for Hitaveita Suðurnesja for over twenty years.
In an interview with the News Supplier of Hitaveita Suðurnesja, in December 1988, Sanders says that discussions with the American military were progressing slowly "until members of the board in Hitaveita Suðurnesja decided to negotiate directly with the people in the USA that could have any sway over the matter - to end the struggle some negotiations". The conclusion led to a meeting, which was held in Washington in October in 1979".
During these discussions, Þóroddur Th. Sigurðsson, water supply director in Reykjavík and then also a member of the board, handled the talks on behalf of Hitaveita Suðurnesja. Mr. Reeder, a management director of all the navy's North Atlantic operations, headed the six-man committee for the American military. Mr. Reeder implied during the beginning of the talks that he was quite a busy man, thus having little time to spend in prolonged discussions with the Icelanders. After the talks had been going on for two to three hours - without the main paragraph being changed, changes and alterations had to be made in the smaller chapters of the contracts. Meanwhile, while that was going on Mr. Reeder directed a question to Mr. Sanders about whether or not Iceland had begun drilling for oil or had begun oil production of any kind. Mr. Sanders directed the question to Mr. Sigurðsson, who at the time sat on a government appointed committee about these matters; after hearing this Mr. Reeder, who was an engineer, temperament in the talks took a turn for the better because before taking a job within the military sector, he had been a consultant in oil procurement and production with oil companies in Texas. Mr. Sanders also said:
"After Þóroddur and Mr. Reeder had discussed oil related matters for a few hours, there was a lunch break. Afterwards Mr. Reeder made his assistant cancel all his meetings that day as well as his schedule for the following day, so that he could reach an agreement with these fine men from Iceland (which he was calling us now). To make matters show a new and transformed Reeder sat with us after the lunch break. If there was a disagreement regarding the contract Mr. Reeder would say: What does Mr. Sigurðsson say about that? How does Mr. Sigurðsson want this? And after Þóroddur Sigurðsson had stated his opinion Mr. Reeder would then say: "Well, then let us do it like Mr. Sigurðsson says". The discussions ended with a contract around noon the next day".
Hitaveita Suðurnesja had 3.980 users that year that bought 10.303 minute liters of hot water. The electrical power production was around 8,8 GWh, with 2,7 GWh being sold out on the national grid. That year, Hitaveita Suðurnesja employed 21 people, with 2 being part-time and 3 being employed in the canteen.
1981
The main projects during the year were work on the distribution system on Keflavík Naval base, completion of the energy plant and its warehouse, along with the cold-water reservoir tank in Svartsengi. That year it was also decided to install a district heating distribution in Hafnir. The electrical energy production was 38,8 GWh, with 31,8 GWh being sold to the grid. Hitaveita Suðurnesja employed 30 people, 3 worked in the canteen and 3 were part-time.
1982
The distribution system on Keflavik Naval base was completed, as was the one in Hafnir along with the supply lines to Hafnir. Work on the cold-water reservoir tank in Svartsengi was continued with additional reconstruction being made on energy plant 1. Contracts with American military forces were signed on the 25th of May; improvements to the system were negotiated and tariffs were increased and the lease from 1980 was extended until the year of 1992. The municipality of Hafnir was also officially connected to the distribution system on the 24th of September. Later that year an agreement was reached with Landsvirkjun on geothermal research in Eldvörp. Hitaveita Suðurnesja employed the same amount of people from last year.
1983
Construction of a cold-water tank in Svartsengi was continued along with repairs to the production channels of energy plant 1. A 1.265 meter deep steam hole was drilled in Eldvörp, which despite the difficulties in the drilling was successful - and the hole turned out to be very productive. Hitaveita Suðurnesja employed 35 people that year.
1984
Alþingi agreed to a change in legislature, or an amendment, regarding Hitaveita Suðurnesja on the 18th of May, which was later to be approved on the 29th of May (number 91/1984). According to the revised law the purpose of the company was thus changed from its original aims:
"The objective of the company (Hitaveita Suðurnesja) is a) to harness geothermal heat in Svartsengi, as well as in other areas on the Reykjanes peninsula, if it is considered economically feasible; b) to build and run energy plants and energy distribution systems in the local area and to handle all sales of hot water to consumers and c) to utilize subterranean steam and hot subterranean water".
There was a clause in the laws that ensured that Hitaveita Suðurnesja would have a monopoly on running an electric distribution company in Suðurnes, and that the national treasury was allowed to sell all its belongings in the company Rafmagnsveitur Ríkisins in Suðurnes. Near the end of the year negotiations between Hitaveita Suðurnesja and the municipalities in Suðurnes were reached, the negotiations were about the merger of the electric distribution company's in the area with Hitaveita Suðurnesja. There were also talks with representatives of the Ministry of Industry regarding Hitaveita Suðurnesja buying the belongings of Rafmagnsveitur Ríkisins in Suðurnes owned by the government.
A fish processing plant, which was part of the same building structure alongside the offices of Hitaveita Suðurnesja, at Brekkustígur 32-34 was bought and renovated and from then on it was used to store supplies and as a office area of Hitaveita Suðurnesja henceforth.
Hitaveita Suðurnesja employed 37 people that year.
1985
On the 17th of May the government of Iceland signed a contract with Hitaveita Suðurnesja, which stipulated that the government would sell the properties of Rafmagnsveitur Ríkisins, such as the electric distribution grid they ran in the Suðurnes district to Hitaveita Suðurnesja, a contract which began effectively the 1st of July.
An agreement was signed between Hitaveita Suðurnesja and the municipalities of Suðurnes, on the 5th of July, regarding the merger of the electric distribution companies owned by the municipalities in Suðurnes and Hitaveita Suðurnesja.
On the 31st of December a new law, number 101, was passed regarding legislature about Hitaveita Suðurnesja. With these laws the nation's treasury ownership was lowered from 40% to 20%, and the board members increased from five to nine.
For the first time in the history of the company the company was run with a profit. From the beginning its total losses, adjusted for inflation and other factors as of 1999, were 2,8 billion ISK. And when the merger went through there was a considerable price decrease in electrical energy in Suðurnes.
After the merger, Hitaveita Suðurnesja's employees increased and were by the end of the year 61.
1986
The main projects during the year related to the electric distribution included a cable that was laid to the airport and preparations for a 132kV line from Svartsengi to Fitjar were begun along with a new distribution station in Grindavík. New projects related to district heating included a new pumping station for Vogar and the airport. Hitaveita Suðurnesja's facilities at Brekkustígur 32-34 had some minor changes and the Blue Lagoon had its bathing facilities built. Electrical power production increased due to the more permits due to the merger. 61, 5 GWh were produced, an increase from 1985 when the production was 41,1 GWh, with 49,7 GWh being sold instead of 30,9 GWh in 1985. Hitaveita Suðurnesja had 69 employees that year.
1987
Negotiations between Hitaveita Suðurnesja and the Ministry of Foreign Affairs were settled on the 5th of March, ensuring Hitaveita Suðurnesja the private rights to energy production in Eldvörp. December 5th the company bought the national treasury's shares in Sjóefnavinnsla hf, thus Hitaveita Suðurnesja became owner of 98,9% of the stock for a total of 53,4 million ISK.
The purpose of this acquisition was to ensure Hitaveita Suðurnesja's rights to sell geothermal energy in Reykjanes. In a letter, signed November 9th, the Minister of Industry gave the company a permit to harness the "steam chimney" in Svartsengi with 3.6 MW steam turbines, later bought from Israel. Negotiations with the American military on electrical energy rates began.
Hitaveita Suðurnesja had 66 employees that year.
1988
Hitaveita Suðurnesja signed a contract on the 25th of February regarding the purchase of three Ormat steam turbines in Israel; and construction of the plant began that year. A new electric distribution station was built in Svartsengi, which was necessary due to the increased electricity production of the company - especially considering that the energy plant was no longer just a geothermal energy plant but also an electrical energy plant. A new distribution station on Aðalgata in Keflavík was built, mainly because of the Naval base. A new high voltage cable from Svartsengi to Fitjar was laid down and cables to salmon ranching companies. ?In January new contracts with American military were negotiated about electrical power tariffs, a considerably better deal than the older contract had been. ?Hitaveita Suðurnesja employed 68 people that year.
1989
Three Ormat steam turbines were officially taken into use on the 8th of September, with a capacity of 3.6 MW and the total capacity of the electric power plant was then 11,6 MW. Cables were laid down from the distribution station in Aðalgötu in Keflavík to the radar station H-1 in Rosmhvalanes and from Svartsengi to Grindavík. Work on a 132 kV line from Hamranes near Hafnarfjörður to Fitjar in Njarðvík was completed, as well as a 132kV line that reached from Svartsengi to Fitjar. A double main pipeline for the district heating, which was 6 kilometers long, from the pumping station in Fitjar to the Leif Eriksson Airport, was laid down. Hitaveita Suðurnesja signed a contract with Vatnsveita Suðurnesja (VAS - a water supply/distribution company) stating that Hitaveita Suðurnesja would handle the water supply previously handled by VAS, as the companies shared waterholes. Hitaveita Suðurnesja had 67 employees that year.
1990
A new high voltage line from Hamranes in Hafnarfjörður to Fitjar in Njarðvík was being constructed and a new main distribution station in Fitjar was in the works. The reconstruction and enlargement of the main distribution station in Sandgerði was completed. A new contract with the American military was reached about a new electrical connection to the new main distribution station in Fitjar; and according to the contract the American military is expected to pay 365 million ISK over the course of six years because of this connection. A contract with a Danish company was also signed on the 12th of January pertaining to the management of the material production of Sjónefnavinnsla ehf. This Danish company was later to found Íslenska Saltfélagið hf, controlling 85% of its shares while the rest was in the hands of Icelandic parties. Since the installment Ormat turbines electrical energy production has increased. 87,6 GWh were produced, in 1989 64.9 GWh were produced and in 1988 73,7 GWh went into the grid, sold that is, that year an increase from 53.5 GWh in 1988. Hitaveita Suðurnesja had 67 employees that year.
1991
One of the company's priorities that year was greatly increased water pumping beneath the earth for the energy plant and the installation of a power system protection (relay protection) for all the main distribution stations of the company.
A brand new 132 kV main distribution station in Fitjar was taken into use on the 20th of December, and the current on the 132 kV line from Hamranes to Fitjar was turned on. Building extensions to the alternating current station on Keflavík Naval base were completed and a new cable was laid down from it to the main distribution station in Fitjar.
While building the new main distribution station additional changes had to be made to the main distribution station in Bolafótur in Njarðvík, extensive changes had to be made to the station. Cables were laid down from the radar station H-1 to Sandgerði (a project completed 1992), from Fitjar to Aðalgata as well a cable to Stafnes in Miðneshreppur, which is now Sandgerði.
The construction of a new supply and machine warehouse was completed on Bakkastíg 22 in Njarðvík. The warehouse is 420 cubic meters on two floors. On the 22nd May a contract was signed in Israel for four Ormat steam turbines, the company already had three then, although the permit for utilization had not yet been granted.
A committee was chosen to work on the merger of Sjóefnavinnslan hf. and Hitaveita Suðurnesja.
Hitaveita Suðurnesja employeed 69 people that year.
1992
The installment of four Ormat turbines, with the total capacity of 4,8 MW, along with the construction of a power plant station were the biggest projects of the year. A pumping station for maintaining the pressure in the geothermal area (earth sea is pumped back into the earth to harness the energy beneath) being utilized was built along with collection lines to collect all the earth sea and water used in the process.
A research hole was drilled into a steam pocket near hole number 10, it was 140 meters deep and almost eight inches thick. Working facilities were also built to help production of the hole within in the steam pocket in the rock strata.
A 36 kV underground cable, about 15 kilometers long, from Svartsengi to Reykjanes was laid down. On the 7th of October, after many meetings in Norfolk, an agreement with the American military was reached about new hot water rates, as the old contract was to expire at the end of the year. With this contract two important milestones were reached: American military forces admitted the legitimacy of the tariffs, that is they should pay higher rates than regular users and for the first time the American military forces negotiated a minimum use per annum, thus ensuring Hitaveita Suðurnesja's further growth.
After being CEO for seventeen years, Ingólfur Aðalsteinson retired from his duties with the company. Ingólfur had been an employee since the 1st of September 1975. Júlíus Jónsson took over as CEO, before becoming CEO he had been executive director of the financial department and began his employment with the company in 1982 on the 1st of October.
Albert Albertsson was hired as assistant CEO, before taking over that position he was executive director of the technology department; he began working at Hitaveita Suðurnesja in 1977 on the 1st of September.
Hitaveita Suðurnesja employed 67 people that year, with temporary jobs of 79; however these individuals worked most of the year despite being temps.
1993
The Ormat plant was officially opened on the 5th of March, the plant's permit was issued on the 4th of February.
A new steam hole (number 14) was completed and its utilization began the 5th of March. Construction of a new main distribution station in Garður and Vogar began along with construction on 36 kV underground cables, which will reach from Sandgerði to Garður and from Fitjar to Vogar. A cable was also installed between Járngerðastaðir in Grindavík to Húsatóftir in Staðarhverfi.
A new supply warehouse, 1.300 cubit meters, was purchased at Fitjabraut 20-22 in Njarðvík. An agreement was also reached with Landsvirkjun about buying their share of the research costs in Eldvörp.
The board of directors agreed in a meeting on the 2nd of April to spend upwards to 40 million on helping the local economy and industries, which led to shares being bought in two companies for the price of 29 million ISK - grants were also awarded.
Talks about the upcoming merger of Hitaveita Suðurnesja and Sjóefnavinnslan hf went quite well. In 1993, the company took a new maintenance system or maintenance prevention system into use; along with a KKS register system for the company and increased quality assurance.
The quality assurance project was considered so huge that it was necessary to slice it up into smaller sections. The assistant CEO (managing director), a big man himself, supposedly said that the project would be "homogenized" (a play with words about milk in Icelandic) or be put on a diet.
The electrical energy production after the Ormat turbines were set up increased by a great deal. 99,8 GWh were produced, an increase from 89,1 GWh from last year and in 1991 the production was 84,7 GWh, and in 1990 it was 73,6 GWh.
Hitaveita Suðurnesja had 67 employees, although with temporary employees who nevertheless worked all year were 78.
1994
The first issue of the News Supplier, the newsletter of Hitaveita Suðurnesja and its employees came out the 16th March. Since then the newspaper has been a biweekly publication with some exceptions. The 127th issue was printed the 6th October. A paper with the same name, News Supplier, was also published in December of 1987 and continued sporadically until 1991 when it was discontinued until 1994. ?The paper was, and is, intended to inform Hitaveita Suðurnesja's employees, briefly, about what is occurring within the company; and all records of board meetings were published within in the paper including articles about the numerous projects the company was involved in, the company's union and its social life was also written about. Most of the articles were and are written by employees as well as by board members and others that are connected to the company in some way or manner. A new factory building, a 635 cubit meter building, was taken into use on the 21st of October in Svartsengi. A week later, or on the 28th of October, a new main distribution station in Garður was officially taken into use along with a 36kV underground cable between Sandgerði and Garður. On the 25th of November a new main distribution station was also taken into use in Vogar along with a 36kV cable between Fitjar and Vogar. Another 36 kV underground cable was laid to Helguvík with distributing capacity of 25-30 MW. The tenant of buildings rented by Sjóefnavinnsla hf. (Sea Material Producer) and Íslenska saltfélagið hf. (An Icelandic salt produce company) went bankrupt, thus Hitaveita Suðurnesja liquidated its assets along with the mother company; and so during this year Hitaveita Suðurnesja merged with Sjóefnavinnslan hf.?Electrical energy production increased again after installment of the new Ormat turbines. The year before 99,8 GWh were produced which increased this year to 104,1 GWh in 1998. The water production was 7,8 million tonnes (545 GWh) an increase of 6,8% and the geothermal area produced 7,6 million tonnes.?The 20th anniversary of the company was held on the 31st of December and it was celebrated with a birthday party in Stapi (a social center) in Njarðvík the day before. Because of the anniversary new promotions and brochures were made, art was purchased. Gifts were also given to Þroskahjálp (an association dedicated to those with disabilities), local rescue teams and to children. Hitaveita's tariff also decreased by 20% for backpedals. A committee for the development of a new building, which was to be a reception and promotion building in the energy plant in Svartsengi, was formed.
1995
During the year, 36 kV underground cables were laid from Vogar to Kálfatjörn church, as well as from Svartsengi to a new main distribution station near the fishmeal factory in Grindavík. A cable was also laid from the main distribution station at Aðalgata in Keflavík to Helguvík, and from Keflavík to Garður. In addition a new main distribution station in Grindavík was built and the preparations for a new main distribution station in Helguvík were begun.
The electrical power production increased yet again and 107,2 GWh were produced, an increase from the 104,1 GWh. The water production was 7,3 million tons (530,3 GWh) which was a decrease of 6%, and the production from the geothermal area was 8,1 million tons.
Hitaveita Suðurnesja requested, in a letter sent the 20th of November, to the Minister of Industry, a permit to increase its electrical production around 25 MW.
Plans for the "exhibition center and canteen" in Svartsengi began that year, and an architectural competition was held. Forty-three applications were sent into the contest, with the first place going to Ragnar Ólafsson and Gísli Sæmundsson of FAÍ.
Hitaveita Suðurnesja also spearheaded the viability of building a magnesium factory at Reykjanes, which by the time of writing (1999) is still ongoing.
1996
A 36 kV underground cable was laid from Vogar to Keilisnes, also á underground cable was laid from the main distribution station at Aðalgata in Keflavík to Helguvík and Garður, and the building of the main distribution station in Helguvík was mostly completed. Plans for the reconstruction of the oldest part of the energy plant in Svartsengi (Energy Plant 1 - OV1) along with the construction of a "new" energy plant (Energy Plant 5 - OV5) was begun, which was deemed necessary because Energy Plant 1 was considered outdated thus the improvements were needed.
This new section of the plant will have a production capacity of hot water that is 240 liter/second, 60% more than the energy capacity of Energy Plant 1 - meaning a 20% increase in the total capacity production of the power energy plant. In the new plant a 30 MW electric turbine will be installed - in comparison Energy Plant 1 has 2MW turbines so the total increase in 28 MW. The total force of the energy plant will then be 150 MW in thermal energy and 44,4 MW in electricity which was 16,4 MW which makes a 171% increase in electricity capacity. The design for an "exhibition and a canteen facility" was begun - and the construction was contracted. The house is 1.220 cubit meters and 5.360 square meters in size.
The electricity production increased again and 117,2 GWh were produced that year, for a total of 59,1% of the total electricity use in the area. The water production was 7,2 million tons (504,9 GWh) and the production decreased 5,3%, however the geothermal area gave 7,7 million tons.
1997
The main distribution station in Helguvík was completed along with a pumping station for hot water under the Grindavík reservoir tank; construction on the provision station near Fitjabraut in Njarðvík was also completed. The main headquarters of the company at Brekkjustígur in Njarðvík underwent many changes - and these changes were not completed until 1999. As planned, further utilization of geothermal heat in the Reykjanes peninsula was made by purchasing land in Hvassahraun around 617,6 ha.
Hitaveita Suðurnesja also bought a 30 MW electrical turbine from Fuji in Japan, and the design and development of the new part of the energy plant (Energy Plant 5) began. Contractors for the construction of information/exhibition and canteen building in Svartsengi completed most of the work that year.
The electrical power production of the company increased greatly and 125 GWh were produced, about 61.9% of total use in the area. The water production was around 7.3 million tonnes (521,3 GWh), a decrease of 2.8% but the geothermal area production gave 7.6 million tonnes.
The chairman of the board of Hitaveita Suðurnesja during those years was quite the comedian, during a board meeting the reaction of Landsvirkjun about poor water harnessing was discussed. During this meeting the harnessing of some of the waterfalls in the country and, although some feel they are harnessed too much, their untapped potential was discussed - to which the chairman replied, gravely: "Isn't the water kind of worthless after being harnessed such much?"
1998
The reconstruction of the oldest section of the energy plant (Energy Plant 5 instead of Energy Plant 1) was huge undertaking and the costs were around 930 million ISK. There were four high heat holes drilled, one 448 meters deep which was in a steam pocket; two others one, one being 1.600 meters deep and the other 1.855 meters deep; and finally a pumping hole which is 1.260 meters deep, which is approximately a two kilometer distance from the energy plant. The total cost of these holes that were drilled was 440 million ISK in 1998. Preparations for a high heat hole in Reykjanes were also begun in December and the cost was 30 million ISK. On the 30th of December an agreement was reached with Landsvirkjun about the main points in upcoming co-producing contract on a 30MW plant; this was a stipulation made by the Minister of Industry for him to agree to allow such a permit. The construction of Eldborg's "exhibition and canteen" in Svartsengi was mostly completed this year, and it was officially taken into use on the 6th of March. The building costs of the Eldborg facility was around 250 million ISK, with the cost of "The Gorge"(Gjáin) taken into account along with 16 million ISK for a myriad of devices. The Gjá was built by blowing up a lava bed under the house, with the intention of showcase of instructive material about the business. ?A new pumping station was built for Sandgerði and Garður near Mánagrund in Keflavík. The electric energy production was nearly the same as the year before, or in 1997. Most of the company's machinery was fully used and the energy production was around 125,5 GWh which amounts to around 61,3% of the total use in the area. The water production was around 7,7 million tons (534,6 GWh) and it increased about 4,6%; the high heat area gave around 7,0 million tons however with taking in account the "down" pumping the total amount was 6.4 million tons. During October negotiations with the American military were completed for a new tariff list for hot water. The new rates were in Icelandic ISK instead of U.S. Dollars, leading to a considerable decrease of revenue, for a total decrease of 120 million ISK between 1998 and 1999. Hitaveita Suðurnesja also spearheaded the construction of new facilities for the Blue Lagoon by becoming a major shareholder in the company Blue Lagoon Ltd, with 44% shares in that company that oversaw the construction, which began towards the beginning of spring. The new and luxurious facilities will be completed within in a year. Negotiations between Hitaveita Suðurnesja and Hafnarfjörður, Garðabær and Bessastaðarhreppur were reached; later Kópavogur also took part. The point of the negotiations was to check the feasibility of potential collaboration or perhaps the merger of energy power companies and energy distribution systems.
1999
The reconstruction of the power plant was mostly completed and production in Energy Plant 5 began on the 3rd of November. The four steam holes, which were drilled in 1998, were connected to the energy plant and the collection lines were enlarged to 4.7 kilometers. The drilling of the high heat hole in Reykjanes penisula was completed, its length was 2.054 meters and the total cost for it during the year was 95 million ISK.
A distribution station was built near the American military forces' base in Grindavík, it was connected to the main distribution system of the company, before the station had been connected to the Naval base with a special line which was removed after these constructions.
The "Gorge", a 120-cubit meter area under the Eldborgar facility was officially opened on the 12th of November. There an interesting exhibition and introduction to Hitaveita Suðurnesja, the area being harnessed and the geological history of the area is shown, along with the geothermal production with all the newest technology in the field being put on display for visitors, as well as being interactive.
The new and splendid facilities of the Blue Lagoon were officially opened on the 15th of July. Hitaveita Suðurnesja owns 44% of the shares in the Blue Lagoon Ltd. Everyone seemed to agree that the design and construction of the Blue Lagoon was superb, and everybody involved in the process can be proud of what they have achieved.
The land Þórustaðir on Vatnsleysuströnd was purchased along with additional land for the company's production site in Svartsengi; in addition to these two purchases the high heat area in Reykjanes was bought from the municipalities. The total cost of these three land purchases along with the proper rights for production was 100 million ISK.
* Many of Hitaveita Suðurnesja's employees are avid golfers - and there is a saying that goes like this: "The Golf Stream" lies from The District Heating Plant (Hitaveita Suðurnesja) to Leira (the golf course) as soon as work is done!
2000
Many changes occurred this year in Hitaveita Suðurnesja's operations. It merged with the electric distribution company Rafveita Hafnarfjarðar (RH) and formed the new company, Hitaveita Suðurnesja Ltd. Even though the company became a corporation it might entail minor adjustments although nothing radical will occur. However, one of the problems that occurred in the merger was that this had not been done before and led to minuscule issues, although a merger would have been simpler, especially if the companies had been corporations before. Also during 2000, Jarðlind ehf a company which Hitaveita Suðurnesja owns 68,3% of, conducted research drilling in Trölladyngja. The drilling of the hole, which was 2.307 meters deep, was completed on the 19th of June. Hitaveita Suðurnesja applied for a research permit, on the behalf of Jarðlind ehf, to the Ministry of Industry to conduct research in Brennisteinsfjöll on the 27th of April. Research for possible low heat areas were conducted as well in Rosmhvalanes; the reason for the research was that considering the age and alignment of the volcanic belt there could possibly be a low heat system underneath Miðnesheiði (Rosmhvalanes). During the past few years there have been rapid changes and developments in the field of energy companies, especially electrical power. It has been Hitaveita Suðurnesja's priority that new energy laws take this into account so that the energy industry can develop normally and efficiently. Hitaveita Suðurnesja hired 24 employees this year during the merger for a total of 100 positions, 97,5 being full time.
2001
A major accolade in the company's history occurred this year. Hitaveita Suðurnesja merged with the electric distribution company Rafveita Hafnarfjarðar to form a joint company, Hitaveita Suðurnesja Ltd. However, there were some bumps before the merger could happen; nonetheless it happened and the first meeting was held the 30th of March 2001.
At the end of 2001 talks between Hitaveia Suðurnesja and the distribution company Selfossveitur and the distribution company Bæjarveitur Vestmannaeyja fell through, despite the agreed proposal signed the 29th of August 2001. However, lateral talks between Hitaveita Suðurnesja and the distribution company Bæjarveitur Vestmannaeyja led to an agreement on the 19th of December, which led to the merger of the companies.
On the 17th of September a new hole, TR 1., in Trölladyngja was "opened" by the then Minister of Industry, Valgerður Sverrisdóttir.
Unfortunately, the news was not great around the globe. The tragic events on the 11th of September have without a doubt changed the world for the coming generations; however, we all hope the stability will be reestablished, and that life will resume its normal course again.
Hitaveita Suðurnesja employed 100 people by the end of 2001.
2002
The merger of Hitaveita Suðurnesja with the distribution company Bæjarveitur Vestmannaeyja was a major event during this calendar year, as well as the electric energy bill put forth during the end of that year, to ensure equal distributional costs of electrical energy for consumers, regardless of their residence. And the CEO had his hands full trying to iron out all the mains snags before it was passed.
The third research hole for a new 90-100 MW plant of Hitaveita Suðurnesja due Norðurál/Century Aluminum was completed in Reykjanes, it was 2.506 meters deep thus making it the deepest high temperature hole drilled at that time.
The Consumers' Association of Iceland price study showed that heating costs were the highest in Suðurnes. However, the data proved false because an employee had provided incorrect information thus the wrong data had been calculated. After that heated discussions about the costs began although correcting the mistakes proved a difficult task.
Hitaveita Suðurnesja employed 120 people by the end of 2002.
2003
One of the more important events for Hitaveita Suðurnesja in 2003 was the energy supply and energy production agreement for Norðurál/Century Aluminium reached between Hitaveita Suðurnesja, Orkuveita Reykjavíkur and Norðurál/Century Aluminum, which were to begin during spring of 2006. An agreement reached with Jarðboranir hf made plans for six high temperature holes in Reykjanes, although drilling on one hole had already begun by that time.
Important features of that year were the cost efficiency and downsizing procedures made by American military forces, with over one hundred people being laid off. Hitaveita Suðurnesja also felt these procedures as the American military sent Hitaveita Suðurnesja a letter the 1st of December requesting a decrease of 500-minute liters from Hitaveita Suðurnesja, with an additional decrease of 500-minute liters in the beginning of January of 2004. This request was made due to the agreement reached in 1998, which stipulated that American military forces could not ask for a water supply decrease of more than 4% per annum, which the request adhered to. This was however a great decrease in production - and as an example: last year 740 minute liters were bought in the municipality Vogar and 1.130 minute liters were purchased in municipality Garður. The total decrease as mentioned above would amount to almost no water being supplied to municipality Garður in all.
Hitaveita Suðurnesja had 115 employees at the end of 2003.
2004
The main project during that year was the harnessing of area in Reykjanes peninsula, with five high temperature holes being drilled thus making the total eight with the rest of the boreholes to be drilled in 2005.
Two turbines were bought from Fuji with each being 50 MW. Construction on the plant's main facilities by Eykt began during autumn of that year along with other construction.
The water supply and distribution company Vatnsveita Garðs in Garður was bought and merged with the main operations of Hitaveita Suðurnesja the same year.
2005
Construction of Reykjanesvirkjun was in full swing during the entire year, with six high temperature boreholes being drilled, thus making the total thirteen - and two more were planned for in 2006. The plant's main facilities were almost completely constructed and the turbines were in place; with the planned startup of Machine 1 on the 1st of May and Machine 2 being started a short while later.
The cost for construction, including harnessing and line construction, on the plant during the year was a total of 6,7 billion ISK, with the total costs from the beginning of the project amounting to a total of 9,7 billion ISK.
In May of that year, an agreement between Hitaveita Suðurnesja, Reykjanesbær and Norðurál/Century Aluminum was reached. The agreement was collaboration on the possibilty of building an aluminum plant in Helguvík. The agreement was that Hitaveita Suðurnesja would check the possibility of harnessing the required energy for such an aluminum plant - thus Hitaveita Suðurnesja requested research permits for two possible areas to be harnessed in the Krýsuvík area; at that time Hitaveita Suðurnesja had already been granted such a request for research in Trölladyngja and near Sandfell.
Also during that year, Hitaveita Suðurnesja decided to increase its electrical power output production in Svartsengi. For this project a 30MW turbine was bought from Fuji. Designers and supervisors for the project were hired and the plant is estimated to be ready at the end of 2007.
Changes to main shareholders of Hitaveita Suðurnesja were made when the company bought 0,1811% of Álftanes's shares at price of 13.496.000 ISK. These shares were then later sold to other shareholders of the company.
2006
The first shovel holes that were dug for the 30 MW Energy Plant 6 were made on the 31st of March with construction beginning in August.
In March, the American military forces, due to their leaving the Naval base and abandoning their military presence in Iceland, gave notice that they intended to rift their contracts with Hitaveita Suðurnesja. Nevertheless, negotiations were fruitful and the American government agreed to pay Hitaveita Suðurnesja a total sum of 10 million dollars for the rupture of the contract.
Electricity production in Reykjanesvirkjun began in May, with the full capacity, 100MW, being reached during the end of May. However, a formal opening took place on the 15th of December.
Hitaveita Suðurnesja decided not to pursue its application for a research permit in Brennisteinsfjöll.
At the end of the year, the treasury of the Icelandic government made it aware that they intended to sell the government's shares in Hitaveita Suðurnesja.
2007
The largest project undertaken during 2007 was the building of Energy Power Plant 6 (Orkuver 6), which has a 30 MW capacity and was taken into use during December that same year. However, the project was not completed until quite recently, it was inaugurated spring-summer 2008, when it was taken into use formally. However, final preparations of The Reykjanes power plant were completed in 2007 - and two new holes were drilled with two old ones being drilled again. Hitaveita Suðurnesja and Norðurál/Century Aluminum signed an energy sales agreement on the 23rd of April for the forthcoming aluminum plant, being built as of 2008, in Helguvík. ??Geysir Green Energy (GGE) bought 15.2% of the Icelandic government shares in Hitaveita Suðurnesja on the 3rd of May. However, Hafnarfjörður, Grindavík and Reykjanesbær made use of their preemption rights in the beginning of July, although shortly before a lot of business was occurring with the shares of the Hitaveita Suðurnesja. Vestmannaeyjar, Sandgerði, Garður, Árborg and Kópavogur sold Geysir Green Energy most of their stock and Reykjanesbær sold its shares that it bought from government treasury stocks. Grindavík sold Orkuveita Reykjavíkur almost all of its shares including the government bonds it had purchased, as did Hafnarfjörður. These sales were all dependent on preemption rights. ?Afterwards an agreement was reached on the 10th of July, Reykjanesbær would own 34,75%, Geysir Green Energy 32%, Orkuveita Reykjavíkur 16,6%, and preemption rights to 15,4 % of Hafnarfjörður's shares along with 1,25% shares being owned by four municipalities in Suðurnes. ??Matters pertaining to Hitaveita Suðurnesja were on the minds of many due to the planned merger of Geysir Green Energy and Reykjavík Energy Invest in October that year; however the merger was however retracted. ??The 14th of December was the 20th anniversary of the The News Supplier; and during this special occasion the homepage hver.is, Hitaveita Suðurnesja' s information database, was officially opened as well.
2008
2008 will mostly be remembered as the year Hitaveita Suðurnesja hf was formerly discontinued. Two independent companies, HS Orka hf and HS Veitur hf overtook the role of former Hitaveita Suðurnesja hf. This was undertaken to act on laws nr. 58 June 7th, 2008 which stipulate that these competitive- and franchised operations must before 1st of July 2009 be divided into two separate and independent companies each with its own and independent board. When this legislation became effective, extensive preparation work on separation of the companies started. The formal split up of the company was fulfilled at a shareholders meeting on December 1st at which the name of Hitaveita Suðurnesja hf was changed into HS Orka hf and at an inaugural meeting for a new company HS Veitur hf (the franchised company).??Investments in the year 2008 were 5.5 billion ISK, a bit less than in 2007.??Electricity production was 864.43 GWh in total from the power plants at Svartsengi and Reykjanes. Hot water production was approximately 11.2 million tons. A record was broken in a single day's production on 31st of January at 19:00 when the production got up to 438 l/s caused by high chill factor (strong winds and low temperature). Sunday 20th of January a helicopter took a team and equipment to an island named Eldey for the purpose of installing a cam recorder broadcasting videos from the largest gannet population in the world. Broadcasting of the videos to the World Wide Web failed because of technical issues. Wednesday 6th of February the customer rewards issued by Íslenska Ánægjuvogin (Icelandic customer satisfaction awards) was issued to the company for the sixth year in a row. Íslenska Ánægjuvogin issuing the company its customer satisfaction reward is an electricity customer opinion poll organized by Samtök Iðnaðarins (The Federation of Icelandic Industries), Stjórnvísi and Capacent Gallup. On 3rd of April a formal inauguration of power plant 6 at Startsengi took place. Six of the oldest engineers of the plant broke the ground for the plant in April 2006. At the inauguration ceremony the engineers attended with their grandchildren opening the plant formally. From generation to generation was the message given that day. Tuesday 8th of April Al Gore former vice president of United States visited Svartsengi.?On Thursday 10th of April a new water supply and pumping station for the municipality of Vogar was adopted.?Tuesday 29th of April the Prime Minister of Finland, Matti Vanhanen visited Svartsengi.??29th of May a powerful earthquake shook Suðurland (south area of Iceland), 6.2 on Richter scale. No damages occurred neither at the power plants nor the distribution system. 16th of July was a formal opening of the exhibition Orkuverið Jörð (Power Plant Earth) at the power plant at Reykjanes. In total over 5300 persons visited the company, received enlightenment about the power generation and why it is possible to harness the geothermal heat source on the Reykjanes peninsula. Employees at the end of the year were 132 working in 130.3 positions.
2009 . HS ORKA
This year the ownership structure of HS Orka hf remodeled considerably when 66.32% of the company's shares changed owners. New shareholder, Magma Energy Sweeden A.B. bought 40.94% of the shares and Geysir Green Energy increased their share from 32% up to 57,38%. The share held by Reykjanesbær decreased from 34,75% down to 0.75% and Orkuveita Reykjavíkur, Hafnarfjarðarbær and Sandgerðisbær left the shareholders group. Whereas after the bank crises the company did not quite fulfill the stipulated covenants for the loan agreements quite an effort was spent on reaching new agreement with the banks financing the power plant projects. ?In order to cope with increased power demand of the heavy industry, the new aluminum smelter at Helguvik among those, the company worked out aggressive plans for new power projects in different places on the Reykjanes peninsula. ?Investments during the year were 1.25 billion ISK. On 16th of July most of the land HS Orka hf possessed at Svartsengi and Reykjanes was sold to the municipality Reykjanesbær. At the same time HS Orka hf signed a geothermal resource utilization contract with Reykjanesbær. Complying with the Icelandic electricity laws the company is privileged to harness the geothermal reservoirs at Reykjanes and Svartsengi for 65 years. Electricity production of the power plants at Reykjanes and Svartsengi were in total 1,393.7 GWh. Hot water productions amounted to 11,5 million tons. Total production of fluid from the geothermal reservoir at Svartsengi was 7,100 million tons or 8.32% less than the year 2008. Reinjection of geothermal fluid was 6.577 million tons in total or 8.26% more than in the year 2008. At the Reykjanes area the fluid production from the geothermal reservoir was 18.259 million tons, 4.02% less than in the year 2008. Reinjection of geothermal fluid at Reykjanes was 0.657 million tons. 2009 marks the first whole year that geothermal fluid is injected into the reservoir. On the 2nd of April a promotional meeting was held at which the scoping environmental assessment report on the expansion of the Reykjanes power plant was introduced. There were only two persons outside the company attending the meeting, taking place in Eldborg the conference centre at Svartsengi. ?For the second year in a row the company in cooperation with some local institutions and companies organized an ambitious hiking program. Rannveig Garðarsdóttir, a professional guide, supervised the different hiking tours taking place from May to September. Various ancient and historical trails were hiked on the Reykjanes peninsula. 4th of March the Íslenska Ánægjuvogin was granted to the company. This is the 8th year in a row that the company achieves this eligible award. The electricity customer satisfaction is measured in a customer opinion poll organized by Samtök Iðnaðarins, Stjórnvísi and Capacent Gallup. In the media this year there were frequent discussions and debates, often very peculiar about the energy potential of Iceland as well as the price of electricity. The company's geologist and reservoir engineer participated in the discussions by sending in articles clarifying the complicated matter. Samorka held a breakfast meeting on the 7th of October under the rubric "Raforkuverð á Íslandi 1997-2008 (Electricity price in Iceland from 1997 to 2008), the influence of increased electricity sales to power-intensive industry on the retail market electricity price". ??The organization participated in the exhibition Reykjanes 2010 held in association with Ljósanótt (Annual festival in Reykjanesbær). In October an application for an operating permit for the planned 80 MW expansions of the Reykjanes power plant was sent to Orkustofnun (the Natioanl Energy Authority). In total around 5.300 persons visited the geothermal sites at Svartsengi and Reykjanes, receiving enlightenment about the power generation, production of hot water, the water work and the skills needed to harness the geothermal reservoirs on the Reykjanes peninsula. ??By the end of the year the employees were 132 taking care of 130.3 job positions. The majority of employees worked for HS Veitur hf, the franchised distribution company.
2009 . HS VEITUR
The company's ownership changed when Reykjanesbær bought 32% share from Geysir Green Energy afterwards Reykjanesbær holds 66.75% of the shares in HS Veitur hf. The year was the first operational year for HS Veitur hf followed by the discontinue of Hitaveita Suðurnesja hf and her roles were overtaken by two independent companies, HS Orka hf and HS Veitur hf. HS Veitur hf have their independent board but resources from HS Orka attend to all services for the company according to a contractor contract between the associations. HS Veitur hf handle all distributional operation that Hitaveita Suðurnesja used to handle that is distribution of electricity among with distribution and sales of hot water and fresh water. Recession was in energy usage on the distributional areas for the first time in years and general electricity usages decreased by 2.2% and hot water sales through breaks decreased by 4.1%??Investments during the year 2009 were less than the previous year and in total 432 million ISK but 2,174 million ISK in the year of 2008. Taken sense to a particular project on water pipe to Vestmannaeyjar then other projects in 2009 were 408 million ISK but 1.165 million ISK the year before or tripled. HS Veitur hf handle collection for energy bills for both HS Orka hf and HS Veitur hf. Defaults increased on certain areas. Outstanding debts increased by 14,6% from the year 2008. Changes of occupants were 5.166 during the year compared to 5.507 in the year 2008. During the year a decision was made to start collaboration with Intrum á Íslandi (now Motus) for collection of energy bills and service invoices. The electric line between Keflavík area and Hafnir caused power failure three times. Two failures were in high voltage distribution at Ásbrú on the 60Hz system. Two high voltage failures were on the 12kV system, one at Helguvik caused by an error in protection equipment and the other one in Njarðvík caused by a string failure. The 33kV string to Grindavík failed but two strings connect it, the area was out of power while the connection was changed. In addition to this several smaller interruptions came up causing call-out. Thereof were 50 call-outs caused by customers' power shortage caused by their equipment failure. Also over thirty imbalances were caused by crashes into streetlights or lack of light. Operational disruptions on the 12 kV system in Hafnarfjörður were five in total during the year 2009. Failures on the distribution system in Árborg were minimal, one supply string burned but it was possible to transfer usage between strings and therefore power shortage was minimal during repairs. The reason was damage on the string made by an excavator. Other disruptions were minimal. Abnormal quantity of failures was on the high voltage system in Vestmannaeyjar probably caused by voltage changes from 6.3 to 11kV during the fall of 2007. Scope of purchases and import were significantly less than in 2008. Only one tender was advertised during the year and it was for cold water pumps. Failure occurred on the hot waters main pipe for Sandgerði and Garður on December 2nd. It was necessary to close for the water for 10 hours during repairs. One of five cold-water wells that the system runs in Garður was closed the 8th of December and the pumping station scraped. This was the well at Fagrihvammur, stood by Karl Njálsssonar fish-processing. Employees working partly of full position for HS Veitur were 102 working in 100.3 positions at the end of the year.
2010 . HS ORKA
The company's ownership changed when Geysir Green Energy sold Magma Energy A.B. Sweeden all their shares in the company. Today Magma Energy holds 98.526% of the shares in HS Orka hf. The foreign ownership and the former split up of Hitaveita Suðurnesja hf raced in the media immoderate and awesome debate in which it was frequently called for an invalidation of the transaction. Signature collection was started on the Internet were it was demanded that the geothermal resources should be owned by the public. It's right to mention the fact that the public already owns the geothermal resources the company utilizes for its power generation and hot water production. Then there was also some discussion that the potential capacity of the Reykjanes geothermal reservoir was overrated, which was responded by the company's geologist and others. Investments of the year were 2.9 billion ISK. Electricity production of the power plants at Reykjanes and Svartsengi was in total 1,349.4 GWh. Hot water production was in total 11.5 million tons. Total geothermal fluid production in Svartsengi was 6.824 million tons or 3,9% less than the year 2009. Reinjection of geothermal fluid was 5.465 million tons or 16,3% less than the year 2009. At Reykjanes the geothermal fluid production amounted to 18,415 million tons in total or 0.5% less than 2009. Reinjection of geothermal fluid turned out to be 2.194 million tons or 234% more than the previous year. New 50 MW turbine generator assembly along with condenser for intended expansion on Reykjanesvirkjun arrived to the country in the beginning of summer. Harnessing permission for the extension had not yet been given and the company´s representatives attended numerous meetings with the representatives of Orkustofnun (National Energy Authority) regarding the matter. 23rd of February the Íslenska Ánægjuvogin was granted to the company. This is the 8th year in a row that the company is granted this eligible award. The electricity customer satisfaction is assessed in a customer opinion poll undertaken by Samtök Iðnaðarins, Stjórnvísi and Capacent Gallup.?On 8th of April a contract was signed with the data centre Thor Data Centre regarding energy purchase. The data centre is located in Hafnarfjörður. May 17th a contract was made with Grindarvík regarding sale of land and geothermal resources at Svartsengi. A land and geothermal lease contract valid for 65 years complying with the energy act was signed. By this Grindavík entered into/took over a contract that had earlier been made with Reykjanesbær. June 23rd a new parking lot, trails and view platform at the Gunnuhver fumaroles area at Reykjanes was inaugurated, replacing the old badly damaged facilities having been abandoned for two years due to forceful activity of the geysers. The company supported the project financially and is to monitor the activities of the fumaroles. In July, for the first time in Iceland an experiment was made to enhance/stimulate the fluid production of well # 29 at Reykjanes by deflagration. Deflagration is when a kind of a torpedo is lowered into the well and located against potential openings of the rock formation and fired there. By precisely controlling the burning rate of the propellant the amount of gas created with time pushes a gas-fluid mixture into the rock formation and opens it up. ?August 4th turbine unit # 12 at Svartsengi tripped because of ungovernable reasons. This incidence caused a disrupted flow into the reinjection well #24 resulting in a noisy blow out of the well and the wellhead assembly expanded upwards by around one meter. The well was killed with cold groundwater and the flow reversed. Neither material damages nor personal accidents were encountered. ?In total approximately 5.800 persons visited the geothermal sites of the company, received enlightenment about power generation, hot water production and ground water reservoir harnessing. The visitors were also educated about the basics of the harnessing of the geothermal reservoirs at the Reykjanes peninsula. Employees by the end of the year were 133 working in 131 positions. Majority of these employees work for HS Veitur hf, the franchised distribution company.
2010 . HS VEITUR
There were no changes on the company's ownership during the year. Electricity usage, including HS Orka own usage, decreased by 1.24% and was 607.6 GWh. Priority usage was 425.3 GWh and decreased by 1.32%. Total usage of hot water was similar to the year before or about 11.5 million tons. Water usages increased in Vestmannaeyjar by 4.2%.??Investments during the year were 588 million ISK in total or 35% more than the year before. Hafnarlína blew out twice caused by a failure. Three failures were on the high voltage system at Ásbrú, the 60 hZ system. Two high voltage failures were on the 12 kV system, one in Helguvík and the other in Njarðvík. Power shortage was in Sandgerði in February caused by a high voltage string failure. Part of Keflavík was short of power in November caused by a short circuit in an oil end sleeve in the distribution station at Sólvallagata, considerable damages were on the station. In Hafnarfjörður two failures were on the 12 kV system, one caused by an human error at nerve center of Landsnet and the other one when an high voltage switch blew out in the transformer station at Öldugata. One failure was on high voltage string in Selfoss and 1/3 of the town lost their power. Then the electricity was taken of 20 MVA transformer in the transformer station and tests done as there was a suspicion of a failure after the 2008 earthquake but it turned out OK. Failures in the distribution system at Vestmannaeyjar were minimal and no failure in the high voltage system. The company started to implement meters for companies, organizations and associations in Suðurnes area. In total 900 brakes were removed and replaced with flow meters. The company's annual meeting was held March 19th and all shareholders attended or 100% attendance. Because of the volcanic eruption at Fimmvörðuháls and later at Eyjafjallajökull in March and April preparedness and regular measures were on the water spring in Syðustu Mörk but the water spring serves Vestmannaeyjar. Quality of the water was regularly measured because of risk of magma intrusion. The company purchased service vehicles powered by Metan gas. Those are the first vehicles that the company purchases neither powered by gasoline nor diesel. The company started to send electric invoices in NES-UBL format in collaboration with InExchange. Policy formulation work started during the year. Construction on a new main pipeline for Garður started. Also installment for a 350mm steel pipe in 500mm plastic code from Bolafótur in Njarðvík to Asparhlíð. For the purpose of strengthening the distribution system for hot water to Helguvík, Garður and Sandgerði.??Employees working partly of full position for HS Veitur were 101 working in 99 positions at the end of the year.?