Thursday, January 24, 2008

Reykjavik's Geothermal Investments Hold Great Promise For East African Republic

Reykjavik, Iceland, Jan 24, 2008 - (ABN Newswire) - Agreements announced at the World Energy SummitAbu Dhabi and Reykjavik, Iceland, January 23, 2008 - Two agreements between Iceland and the Republic of Djibouti can help the East African country replace its current diesel-generated electricity with green electricity.

The agreements were announced at the World Energy Summit held in Abu Dhabi.First, Iceland's Minister of Industry HE Ossur Skarphedinsson and HE Mohamed Ali Mohamed signed an agreement on energy cooperation where the countries will share expertise to support Djibouti's course towards energy sustainability.Second, the CEO of Reykjavik Energy Invest (REI) Mr. Gudmundur Thoroddson, Djibouti's Minister of Energy HE Mohamed Ali Mohamed, and the CEO of the Djibouti Energy Company Mr Djama Ali Guelleh announced the signing of an agreement on the financing structure for the Djibouti Asal Rift Geothermal Project. As part of the Asal Project, REI intends to build a geothermal power plant, which is estimated to start production in 2012.

The plant will supply Djibouti with green electricity, replacing its current diesel-generated electricity.REI's projects in Djibouti are part of the company's US$150 million commitment to investments in geothermal energy in Africa announced by Bill Clinton and President Grimson at the Clinton Global Initiative in New York in 2007.In an address at the World Energy Summit, the President of Iceland, HE Olafur Ragnar Grimsson, discussed the global impact of climate change and how geothermal energy can be one of the solutions to global warming. The President also discussed how Reykjavik Energy Invest's projects in the Republic of Djibouti will transform the country's energy sources from fossil fuels to sustainable energy.Comments: HE Olafur Ragnar Grimsson, President of Iceland: The cooperation between Djibouti and Iceland will help transform the oil-based energy system of Djibouti to clean, geothermal-based energy.

This cooperation could become a landmark in the clean energy future of East Africa.HE Ossur Skarphedinsson, Minister of Energy, Iceland: Djibouti today generates all its electricity through the combustion of imported fossil fuels, which is similar to Iceland in the middle of the last century. Today, however, Iceland generates all its electricity from sustainable sources. The country has become largely independent of fuel import for domestic usage. We hope to share our experiences with Djibouti and help transform the energy sources used there.Mr. Gudmundur Thoroddsson, REI's President and CEO: REI is currently taking important steps towards significant investments in Djibouti. The signing of this agreement brings us one step closer to supplying green energy to Djibouti.

We are pleased with the excellent relationship that we have had with HE Mohamed Ali Mohamed and the government of Djibouti, and with the professionalism of the energy authorities in the area.- ends-For further information, contact:Gudmundur Thoroddsson, CEO Reykjavik Energy Invest, Phone +354 516 6000 Runar Hreinsson, Director of Public Relations, Mobile Phone: +354 822 2516, e-mail: runar.hreinsson@rei.isAbout Reykjavik Energy Invest Reykjavik Energy Invest (REI) (www.rei.is / info@rei.is) is the Reykjavik Energy (Orkuveita Reykjavikur) international business development and investment arm. Reykjavik Energy Invest focuses on creating partnerships to develop geothermal areas. The company invests in geothermal exploitation rights; develops, constructs and operates geothermal fields; and seeks to acquire geothermal plants currently in operation. Reykjavik Energy is the world's leading authority in the utilization of geothermal energy.

Over the past 60 years, the company has consolidated its leadership by supplying a large portion of the Icelandic population with geothermal water for domestic heating and by gradually developing new steam fields for power production.LINK:
Source: ABN News

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