Reykjavik Energy renegotiates turbine contract with Japanese turbine producer, essentially freeing itself from the obligation for a one-time payment.
In the spring of 2008, Icelandic utility Reykjavik Energy bought five turbines for planned geothermal power plants. At the time, the company had not decided where the turbines would be used.
Two of the turbines are now in Iceland and were used for the Hellisheidi geothermal power plant near Reykjavik. Three of the turbines ordered in 2008 are still in Japan and their value estimated at around $134 million. Since then Reykjavik Energy has been trying to find an agreement with the Japanese turbine producer, assumed to be Mitsubishi Heavy Industries. Late last year, the companies managed to come to an agreement that includes a delay in delivery of two turbines and the cancellation of delivery of the third remaining turbine with a payment by Reykjavik Energy of around $27 million.
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