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Media Coverage of GAMMA's geothermal projects

3.1.2018 Media Coverage

Icelandic newspaper addresses the increased interest of investors in the utilization of geothermal energy and the involvement of GAMMA in geothermal energy projects.

Rising interest from large international investors seeking exposure to geothermal projects can create a great opportunity for Icelanders, said Gísli Hauksson, Chairman of the Board of Directors of GAMMA, in the Icelandic newspaper Fréttablaðið this past December. Gísli explained the outlook for geothermal infrastructure,  why this opportunity is important for international investors and GAMMA's cooperation with the US advisory firm Interlink Capital Strategies in facilitating geothermal projects.

- The below translation is from an article originally published in the Icelandic newspaper Fréttablaðið on December. 19th, 2017.

Interest in utilizing geothermal energy grows among investors

FBL---umfjollun-19.12.17International investors' increased interest in investing in geothermal projects can create great opportunities for Icelanders, according to Gísli Hauksson, Chairman of the Board of GAMMA. One of the world's best-known investors, Bill Gates, has established a fund looking to invest in such projects.

"Globally geothermal energy accounts for less than one percent of the energy we use, despite the knowledge of enormous geothermal energy available around the world. Reasoning for the low utilization rate is twofold; On the one hand, there has been, until now, limited progress in drilling technology, in order to drill deep enough. This is changing fast with more knowledge and technology. On the other hand, there is more uncertainty in the preparatory phase when looking for feasible geothermal sites than compared to other sources of energy. Multiple experimental drillings are needed to seek out the energy source, but when it is found, its utilization is relatively cheaper and more constant than other energy options," says Gísli.

He goes on to explain; "As soon as one has found usable hot water and steam that can power turbines or heat up houses, the risk of the project is quickly reduced. The uncertainty level is high in the beginning.” Gísli says that in recent years large international funds, generally financed by the public sector in one way or another, have been researching geothermal areas in the early stages. These are however risky investments. He also emphasizes the importance of Bill Gates investing in the field, as experience shows that other powerful investors will follow.

"Not limiting the funding of research in this field to public institutions, but also incorporating financially strong private investors, provides opportunities for traditional investors, pension funds, insurance companies and others to invest in geothermal projects," says Gísli. Such increased diversity would reduce the risk involved. Gísli points out that it has been forecast that after ten years the geothermal energy will be utilized as much as solar energy today. A point of great importance to Iceland.

"There is increased global awareness about how important geothermal energy is when it comes to increasing the use of renewable energy in the future, and about how affordable the technology is. In addition, Icelandic scientists and engineers are prominent in geothermal technology, either working in Iceland or for Icelandic companies abroad. Icelanders are very advanced in this sector," he says.