Subsurface, well engineering and well management specialist, Elemental Energies, and geothermal drilling services contractor, Iceland Drilling Company (Iceland Drilling), have announced a joint venture (JV) providing integrated well engineering and project delivery solutions for the global geothermal market.

The JV brings together Iceland Drilling’s expertise in high-temperature geothermal drilling, through their fleet of modern hydraulic drilling rigs, with Elemental Energies’ subsurface and well engineering capabilities. With over 70 years of experience and several hundred geothermal wells delivered worldwide, Iceland Drilling is a global leader in the delivery of geothermal well construction. Elemental Energies has a proven track record in well management spanning over 35 years with extensive experience supporting global geothermal projects.

With increasing momentum in geothermal sector activity, driven by decarbonization targets and advancements in geothermal technology, the JV will support increasing project demand by integrating well engineering, subsurface, drilling, and project management. This approach will assure supply, leverage best practice and help reduce project costs through integrated efficiencies, allowing developers to access the skills and services needed for successful project delivery.

“We are incredibly excited about the potential this joint venture offers,” said Mike Adams, CEO of Elemental Energies. “By combining our technical expertise in subsurface and well engineering with Iceland Drilling’s advanced geothermal drilling services, we are in a strong position to lead the charge in delivering scalable solutions to the global geothermal market. We are committed to supporting the next phase in the sector’s growth and are proud to be doing so alongside Iceland Drilling.”

According to the International Energy Agency, geothermal could supply up to 15% of global electricity demand growth by 2050, generating nearly 6,000 terawatt-hours per year, equivalent to the current electricity demand of the US and India combined. With cumulative investment projected to reach $1 trillion by 2035 and $2.5 trillion by 2050, demand for geothermal delivery capabilities and expertise will be high.

Sveinn Hannesson, CEO of Iceland Drilling, added: “This partnership represents a unique opportunity to expand our role in the geothermal sector. As projects scale, they will require consolidated expertise to meet increasing demand. This JV brings together leading capabilities in well engineering and well construction to enhance coordination, reduce risk, and manage costs. By integrating these critical services, we aim to accelerate project execution and make geothermal development more efficient and cost-effective.”

The joint venture will offer a full suite of integrated services, including early project planning, feasibility studies and subsurface modelling through to conceptual and detailed engineering, integrated drilling services, project management, and operational execution. These services can be tailored to support projects at any stage, whether clients require fully integrated solutions or standalone services.

Strategic alignment of complementary strengths between Elemental Energies and Iceland Drilling will position this joint venture to support the growing demand for geothermal energy worldwide.

About Elemental Energies

With over 35 years of operational experience, Elemental Energies is a global leader in well engineering, subsurface and project management, having delivered more than 700+ project managed wells and supported geothermal developments across diverse regulatory environments, from the Netherlands and the UK to Kenya, Italy, and Australia. The company has grown both organically and through strategic acquisitions, including Senergy Wells, Norwell Engineering, and most recently Norwegian Well Expertise, bringing together world-class capabilities and a global team of over 200+ engineers and technical professionals supporting both onshore and offshore projects spanning exploration, appraisal, field development, decommissioning and repurposing for CCUS and geothermal.

About Iceland Drilling Company

Iceland Drilling Company is a leading geothermal well construction company with decades of experience in both high and low-temperature projects. Operating internationally, IDC offers comprehensive geothermal drilling services, utilizing advanced techniques and equipment to ensure efficient and safe operations. The company provides integrated project management, overseeing drilling projects to ensure timely and cost-effective delivery. IDC boasts a fleet of modern hydraulic drilling rigs that are automated for safe and efficient operations.

It is a pleasure to announce that Sveinn Hannesson has been hired as CEO of Iceland Drilling Company and will start within 2 months. Sveinn is a Mechanical and Industrial Engineer from University of Iceland and has substantial management experience from international organisations. Last 8 years he has acted as CEO of Crayon in Iceland as well as leading other North European branches. Crayon is an international IT company with headquarters in Oslo.

We welcome Sveinn to Iceland Drilling Company.

Guðjón Ásmundsson CFO remains Acting CEO until Sveinn assumes his new position.

Archer is now owner of 50 % of Iceland Drilling. The other 50% is owned by Kaldbakur which was also a previous shareholder in Iceland Drilling.

Archer is an international drilling company with headquarters in Norway. Archer is with the investment increasing their commitment to the ongoing energy transition.

The shareholders have elected a new board of directors.
Chairman of the board is Höskuldur H. Ólafsson.
A list of the board members is available at https://www.jardboranir.is/about-us/boards/
For further information on Arher please visit their homepage at https://www.archerwell.com/

Following mobilization and rig up of our Drillmec HH-220 rig in the Azores, then geothermal drilling operations have started. First well is already finalized successfully and the second already in progress. The geothermal area is in Ribeira Grande on the island of Sao Miguel.

Iceland Drilling Company have successfully mobilized their drilling rig which is Drillmec HH-220 from the Island of St. Vincent in the Caribbean to the Azores Islands.  Following land transport and rig up procedures, then geothermal drilling operations have started. First well already finalized successfully and the second already in progress.  The geothermal area is in Ribeira Grande on the island of Sao Miguel.

The project involves the drilling of three to six geothermal wells in Ribeira Grande up to a depth of 1500 meters.  Once finalized the drilling rig will be mobilized to the nearby island of Terceira for additional drilling of two to three wells at Pico Alto geothermal field.  The purpose of the drilling is to increase the electric generation capacity at existing power plants.

Sigurdur Sigurdsson, the CEO of IDC, underscored that this drilling project marks the 5^th geothermal drilling project operated by Iceland Drilling Company on the islands of the Azores.  We are very glad to have contributed toward activation of geothermal power generation in the Azores.  We are islander just like Azores and realize the importance of utilizing domestic clean energy source for energy security. We look forward to the good cooperation and to continue to create value for our client in Azores.

According to Carlos Bicudo, Board Member of EDA Renováveis

The exploitation of geothermal resources in the Azores guarantees 25% of all electricity generation on the islands. The contribution of geothermal is even higher in each power generation system, reaching up to 44% in São Miguel island and 12% in the Terceira island. With about four decades of exploitation in the Azores, geothermal has proven to be a cost-effective option, providing reliable and sustainable power, and reducing the carbon footprint of power generation.

We are planning to increase the geothermal capacity in São Miguel and Terceira Island, passing from the current 23 to 28 MW and from 3,5 to 10 MW, respectively. The ongoing drilling campaign corresponds to first phase of this ambitious investment plan. We are very glad to have the cooperation of Iceland Drilling Company for this project as drilling contractor, who already drilled most of our wells, and we look forward to working together once again.

 

EDA Renováveis have awarded Iceland Drilling Company (IDC) a new drilling contract on the Azores, for drilling geothermal wells on the islands of Sao Miguel and Terceira. This is the result following an open tender in the European Area, where the company participated in competition with two other European drilling companies. The project involves drilling for nine (9) geothermal wells, with an estimated depth of 1,000 to 2,300 meters. The value of the contract is about EUR 18,6 million.

Ahead is further preparation for the project on the Azor Islands. IDC plans to mobilize the drilling rig „Odin“ in the springtime from the island of St. Vincent in the Caribbean, where the company is completing drilling three geothermal wells. The spud in is expected to begin on the Azor Islands this early autumn, first on the island of Sao Miguel, where there are currently two power plants utilizing the geothermal wells drilled by IDC some 8-15 years ago. Then the plan is to mobilize the rig to the island of Terceira, but there is already one geothermal power plant producing up to 3 MWe.  The working time is estimated to be 12-18 months.

According to Sigurdur Sigurdsson, CEO of IDC, this agreement is important for the company, as drilling activity in Iceland will be minimum for the next two years.  IDC previous experience of contracting in the Azores and beyond is a good roadmap for this project, but over the past 15 years the company has done a lot of work in acquiring projects abroad and now the company has drilled geothermal wells in a total of 10 countries around the world. The company is respected in the international market for its expertise it has acquired in Iceland and abroad. Interest in the utilization of geothermal energy for energy generation and central heating is growing in many parts of the world, where it is environmentally friendly and renewable energy.

Feb 2020