Fossar Advisor in USD $20m Series B round for Reykjavík Geothermal
Reykjavík Geothermal (RG) has completed a Series B financing round of up to USD 20 million, equivalent to approximately ISK 2.4 billion. The financing was led by Innviðir fjárfestingar II slhf., an infrastructure fund managed by Summa Rekstrarfélag hf., with participation from existing shareholders. Discussions are also ongoing with co-investors regarding participation in the financing.
The financing will support the continued development of the company’s geothermal projects in Iceland, while the company is also working on projects in the Canary Islands and the Middle East. This represents the first phase of the company’s financing, and it is estimated that RG’s total investments in projects currently under development will amount to at least ISK 80 billion over the next four years, largely in Iceland. Preparations for the next financing round are already underway.
Corporate finance advisory services from Fossar Investment Bank acted as the manager of the financing round and advisor to Reykjavík Geothermal. Legal advisory services were provided by Elements by BBA/Fjeldco and Juris Law Firm. Fossar congratulates RG and Summa on the transaction and thanks BBA/Fjeldco and Juris for a pleasant collaboration.
About Reykjavík Geothermal
RG is a specialized and leading geothermal development company with more than 15 years of international experience in consulting and geothermal project development. The company’s primary projects today are located in Iceland, the Canary Islands, and the Middle East. Since 2018, RG has focused on Iceland and worked on the development of a geothermal project known as Bolaalda in Ölfus. In June 2024, the Master Plan Steering Committee recommended that the project be placed in the utilization category. At Bolaalda, a geothermal power plant is planned with 100 MW of electricity generation and 133 MW of district heating capacity, with total estimated investment of up to ISK 60 billion. Environmental impact assessment work is underway, and exploratory drilling is expected to take place in the first half of 2027.
In addition, RG is developing three geothermal projects in the Canary Islands, located in Tenerife and La Palma. These are joint projects with DISA, the largest company in the Canary Islands and one of the largest energy distributors in Spain, and the authorities in Tenerife are also co-investors in the projects on the island. Exploration licenses have been secured along with grants from the European Union of up to EUR 58 million for exploration drilling, and drilling activities have recently commenced.
“This is a major milestone for the company to complete this financing round in support of the significant growth ahead of us, both here in Iceland and internationally. RG has established itself as a leading geothermal project developer on the international stage, and securing the support of strong professional investors such as Summa is a vote of confidence that will be invaluable going forward. At the same time, this represents recognition of the Icelandic energy sector as a whole that institutional investors back our experience and believe in its long-term value creation both domestically and abroad,” says Magnús Dagur Ásbjörnsson, CEO of Reykjavík Geothermal ehf.
“An investment in Reykjavík Geothermal aligns well with our focus on participating in the development of infrastructure that supports sustainable economic growth. The company’s planned projects are substantial and could have a significant impact on energy security and value creation in Iceland in the coming years. RG possesses specialized knowledge and experience that are critical to the development of geothermal projects in Iceland as well as internationally. We believe the company is well positioned to execute these projects and create long-term value for investors and society as a whole,” says Sigurgeir Tryggvason, Managing Director of Summa Rekstrarfélag.
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