Our Focus - Geothermal Energy
Why are we focusing on geothermal energy... and why is this a good thing?
Glitnir´s strategic focus is based upon its heritage and industry experience. The Bank's home markets, Iceland and Norway, have been strong fishery nations for centuries and both countries derive around 99.9% of its electricity needs from renewable resources. The bank has through its experience a natural industry focus which is a truly unique situation and a perfect business case.
While it is mostly hydro power in Norway, it is around 80% hydro and 20% geothermal resources that provide electricity to the Icelandic nation. Furthermore about 90% of all homes are heated geothermally in Iceland. The bank has found its natural niche to work in, a niche that is built upon a sustainable base. Hence the bank looked at renewable/ sustainable energy, where geothermal quickly became the obvious choice.
In the world, Iceland is no. 8 when it comes to generated electricity by geothermal sources and no. 5 when it comes to the direct use of geothermal heat. Direct use refers to district heating, swimming pools, greenhouses, industrial applications, snow melting, food processing etc.
This is a very unique situation to be in and if people talk about geothermal world-wide most of them connect geothermal "power" with an "exploding" Geysir on Iceland. And yes all "geysirs" in the world are named after the Icelandic one.
Iceland has been promoting and developing geothermal district heating since the 1970s. Iceland started the development of a geothermal energy industry based upon a strong legal foundation and government support. Due to political will ever since, there has been extremely broad range of scientists that have build up a unique knowledge in the sector. Engineers, executives, academics and politicians in geothermal energy development have through their international activities of Icelandic companies gained experience both local and global. Institutions like the Icelandic GeoSurvey, various engineering firms, developers, drilling companies, utilities and others have worked on geothermal projects worldwide.
The UN University Geothermal Program was established in Iceland 1979 and has graduated a big group of 400 geothermal experts in developing countries. This is a pool of experience and expertise that has strongly supported business for Glitnir. The sector has locally demanded a bank with specialisation, and as Glitnir grows internationally, the demand for expertise in this sector in new developed countries is huge.
The utilisation of geothermal energy for electricity production is not only a global climate issue that Glitnir is committed to participate in, its also an economic issue. Electricity production and direct use applications save the Icelandic nation around USD 600 million each year in cost for oil, which Iceland was dependent on for a long time. Not to mention how promotion of renewables in every countries´ energy mix can play a part in saving the Earth.
Glitnir is in the geothermal energy sector due to historical reasons and extreme good business case where social responsibility and sustainability are the drive for its business. The business is always done in cooperation with governments around the world, willing to secure lease cost and clean source of power for its nations. Geothermal energy is defined as the banks´ strategically approach because its sustainable when the hot water used in the geothermal process can be used to produce more steam. Reinjection of the steam pumped up is demanded for all projects of the Bank´s behalf to maintain the sustainability.
People should do what provides them competitive advantage. Through experience with extreme weather conditions, earthquakes and natural disasters, harnessing the earth's energy comes natural to the Icelandic people. That is where the know-how is. When all strings are pulled together, Icelandic nature has brought geothermal business into the banks´ core strategic approach - naturally! The knowledge and the experience of the Icelandic nation, the network established throughout the last decades has spread out a recognized image of the know how in geothermal sector. It's a global need and it is Glitnir's clear competitive advantage.
Glitnir is a proud member of the United States Geothermal Energy Association (GEA).
