Reykjavík Energy’s Consolidated Financial Forecast 2023-2027 Approved

Reykjavík Energy’s (Orkuveita Reykjavíkur; OR) consolidated financial forecast for the years 2023-2027 assumes strong growth in investments and operations. The drivers are mainly two; expansion and construction of Veitur Utilities’ distribution systems due to new housing and new transport infrastructure in Iceland’s Capital Area and the construction of Carbfix’ s mineralization facilities for carbon dioxide. A total of ISK 184 billion is expected to be invested in the years 2023 to 2027. Bjarni Bjarnason, CEO of Reykjavík Energy, believes that companies in the OR group and their staff are well equipped to deal with these large-scale projects.

The financial forecast is consolidated for Veitur Utilities, ON Power, Reykjavík Fibre Network, and Carbfix as well as the parent company. It is based on forecasts approved by the respective subsidiary’s BoD and was approved by Reykjavík Energy’s BoD today. The forecast will be discussed in the Reykjavík City Council as a part of the City's consolidated budget.

The CODA Terminal Included in Forecast

The financial forecast assumes that Carbfix will invest around ISK 40 billion in the fight against climate change by building a CO₂ transport and mineralization hub and on further research to develop the Carbfix method, which permanently turns the greenhouse gas to stone. The most advanced plans are for Straumsvík, where the CODA Terminal will be constructed. Investments there will be highest in the years 2024 and 2025. Preparations for the sale of new shares in Carbfix are ongoing to finance part of the investments, and the CODA Terminal project has received generous support from the EU’s Innovation Fund.

Combined State and Municipal efforts to speed up the development of residential housing and the implementation of the Capital Area Transport Agreement are added to Veitur Utilities’ traditional projects of maintaining and developing waterworks, electric grid, heating utilities and sewerages in the south and west of the country. There are already  signs of  strain in the contractor market, that can risk the Veitur´s investment plans in the planning period. Veitur’s implementation of smart energy metering will be completed during the forecast period.