Jardboranir hf. has signed a contract the German company Herrenknecht Vertical GmbH concerning the purchase of and purchase rights to the large high-tech drills that are specially designed to obtain geothermal heat from great depths. The total contract amount is just over ISK 6 billion. The acquisitions were financed with equity and borrowed funds. The purchase of the drills is an element in Jardboranir's extensive expansion into foreign markets. It is planned that the Company's first new drilling projects in southern Germany will take place before the end of this calendar year. Environment-friendly energy in ever-greater demand The demand for energy that is obtained by environment-friendly means is increasing steadily. There has been a great awakening with respect to the utilisation of environment-friendly energy in Europe, with more and more attention devoted to geothermal heat. Jardboranir possesses a great deal of expertise in geothermal drilling, and the company is well positioned to become a world leader in the field of geothermal drilling and exploitation of geothermal heat. The company is engaged in discussions with several parties concerning various projects, and it has become clear that there is growing awareness of the value of geothermal heat projects, especially in Central Europe, and most particularly in Germany. It is expected that increased utilisation of geothermal heat will promote economic growth and employment opportunities in harmony with the needs of the community, including the demand for the reduction of greenhouse gas emissions. For this reason, the future is bright in the field dedicated to the use of geothermal heat for energy production. With that in mind, Jardboranir has focused particularly on Germany. The agreement with Herrenknecht Vertical enables Jardboranir to penetrate that market aggressively by exporting the experience, expertise, and knowledge that the company possesses. Jardboranir drilling fleet substantially With this purchase, Jardboranir's drilling fleet has been expanded substantially and now comprises nearly twice the drilling capacity that it had previous to the agreement. The addition of this equipment marks a technological watershed for the company's operations. The equipment in question consists of a new generation of high-tech drills that emphasise automation, increased productivity, and greater employee safety. It is of great importance that the drills be environment-friendly, compact, and quiet, and that working conditions be as beneficial as possible. Each of the new drills can lift weights up to 350 tonnes. The purchase of the first drill has been finalised, and it will be delivered this coming fall. Magnús Jónsson, CEO of Atorka and Chairman of the Board of Jardboranir: “We view this as the first step in the build-up of Jardboranir as a leading company in the field of drilling technology and related geothermal activities in Germany, as well as its being the beginning of vastly increased foreign expansion for the company,” says Magnús Jónsson, CEO of Atorka and Chairman of the Board of Jardboranir. About Jardboranir hf. Jardboranir is owned by Renewable Energy Resources (RER), a subsidiary of Atorka Group. RER specialises in investments in renewable energy. Jardboranir hf. is a high-tech knowledge company with global operations centring on the utilisation of resources from the earth for the production of renewable energy. Jardboranir is also the largest global drilling company specialising in geothermal drilling. Among Renewable Energy Resources' other assets are a 22.1% stake in Romag, a global producer of photovoltaic glass that uses daylight to produce electricity, and a 16% holding in Enex, which focuses on development projects in the geothermal heat sector. About Atorka Group Atorka Group is an international investment company listed on the OMX Nordic Exchange in Iceland. Atorka invests in sound undertakings that operate in business sectors with unique potential for growth on a global level. In its investments, Atorka emphasises companies characterised by solid operations, strong management, promising conditions for internal and external growth, and opportunities for value enhancement. For further information, contact Magnús Jónsson, CEO of Atorka (tel. +354 840 6240).
- Jardboranir takes a decisive expansionary step - gains a foothold in the environment-friendly energy sector in Germany
| Source: Atorka Group hf.