A new geothermal power station with a total capacity of 90MW is to be built in Iceland.
Located in Theistareykir, north-eastern Iceland, the facility is being financed by the European Investment Bank (EIB). It has signed a €125 million (£99m) loan agreement with Landsvirkjun, the National Power Company of Iceland to fund its design, development and operation.
Geothermal wells that could provide 50MW have also been drilled and tested.
EIB Vice President Cristian Popa said: “Iceland is in a very special position when it comes to renewable energy and it’s great to see how Landsvirkjun is making the most of it.
“The Icelandic expertise in this area is state of the art and serves as a blue print for geothermal projects around the globe.”
The loan is the first EIB project in Iceland since 2011, when it lent €70m (£55.4m) for the construction of the Budarhals hydropower plant.