direct/ Reykjavik Energy Invest (IS) - Agreement between REI, Clinton Global Initiative

Reykjavik Energy Invest contracts to invest ISK 9 billion in Africa

Reykjavik, 28 September 2007 - Gudmundur Thoroddsson, CEO of Reykjavik Energy Invest (REI) announced today, together with the President of Iceland, Ólafur Ragnar Grímsson and Bill Clinton, former president of the US, REI´s decision to invest 150 million dollars in geothermal development in Africa during the next 5 years.

The announcement was made at the final event of the annual meeting of the Clinton Global Initiative, which Bill Clinton manages in New York. According to the agreement, REI commits to invest a minimum of 150 million US dollars or 9 billion Icelandic kronas during the next five years in the development of geothermal power plants in East Africa.

The President of Iceland is the promoter of the agreement, which was signed at the annual congress that Clinton holds to bring together the representatives of policy making, business and free-enterprise associations.

Reykjavik Energy Invest is currently exploring the geothermal potential of Djibouti in East Africa. According to the terms of the agreement REI has obligated itself to invest more than USD 5 million in research on the potential of geothermal resources in the area. If the results are favorable, Djibouti will have the opportunity to produce the major part of its power needs from renewable and environmentally friendly geothermal resources.

REI will also support activities to attract further investments to Djibouti to utilize the renewable power sources.

Considerable geothermal sources can be found in East Africa on the so called Assal Rift. In addition to REI´s commitment to Djibouti the contact obligates REI to work with the government of the neighboring county Ethiopia on the development of geothermal power generation. REI will also work with the World Bank and other international agencies, to develop further geothermal opportunities on the Assal Rift.

Comments:

With the announcement, Bill Clinton welcomed the REI contribution and spoke well of the results of the Icelandic initiative in the last few years in investing in clean power throughout the world. He especially mentioned the Icelandic interest in exporting expertise and investment in geothermal processing to aid development in Africa and thanked the President of Iceland for his deep concern and strong support.

Gudmundur Thoroddsson, CEO of Reykjavik Energy Invest:

Gudmundur Thóroddsson, CEO of REI, says that there is a huge opportunity for REI in the area. "REI invests in the utilization of geothermal potential throughout the world. We feel that there is a huge opportunity for the company in East Africa and we anticipate excellent cooperation with the countries in the area. East Africa has a large geothermal potential waiting to be tapped by REI´s expertise for the advantage of the inhabitants of East Africa. We expect a very considerable long-term build-up of the area."

For further information, please contact:

Bjarni Armannsson, Chariman REI, phone +354 516 6000

Gudmundur Thoroddsson, CEO REI, +354 516 6000

Haflidi Helgason REI

Mobile: +354 864 6350, e-mail: haflidi.helgason@rei.is

About Reykjavik Energy Invest
Reykjavik Energy Invest (REI) (www.reykjavikenergy.com) is the Reykjavik Energy (Orkuveita Reykjavikur) international business development and investment arm. We bring Reykjavik Energy´s expertise to our partners and investments by focusing on creating partnerships to develop geothermal areas. REI invests in geothermal exploitation rights as well as site development, construction and operation of geothermal fields, and seeks to acquire geothermal plants currently in operation. Reykjavik Energy is the world´s leading authority in the utilization of geothermal energy. We have consolidated our leadership over the past 60 years by supplying a large portion of the Icelandic population with geothermal water for domestic heating and by gradually developing new steam fields for power production.

Press release (PDF)
http://hugin.info/138185/R/1157078/223447.pdf




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