global geothermal news: october, page-22

Iceland takes a hit
October 9, 2008 - Exclusive By David Ehrlich, Cleantech Group

Mountain View, Calif.-based Google (Nasdaq: GOOG) may be stealing headlines lately as a big-named backer of geothermal power, but Iceland's Glitnir Bank has been at it a lot longer. But those boom times for Glitnir are likely headed for the slow lane these days.

A leading geothermal investor in North America and elsewhere, Glitnir has been put into receivership amid a significant hit from the global credit crunch on the small country's economy. Glitnir, which focuses on the seafood and geothermal industries, was initially nationalized along with the country's other major banks, but has now been handed over to financial regulators.

"Glitnir Bank would like to stress that the bank has not been put into liquidation but is in receivership which gives it a temporary protection from payment of debts and obligations as they fall due," the bank said in a statement.
"Work has already begun on the restructuring of the operations of Glitnir Bank."

The government initially took a 75 percent stake in Glitnir, but said this week that the Icelandic Financial Services Authority has decided to take over the powers invested in Glitnir's shareholders meeting and Glitnir's board of directors.

Earlier this week, Glitnir released its latest annual U.S. geothermal energy marketing report, saying that potential electricity sales from geothermal production in the States could be as high as $29 billion per year (see Glitnir projects $29B U.S. geothermal energy sales).

When Glitnir released its 2007 report last year, the bank said it planned to invest $1 billion in U.S. geothermal energy projects over the next five years (see Glitnir pouring cash into geothermal).

Glitnir has not said if the current crisis will affect its ongoing investments, but the bank has already announced plans to sell off its Finnish subsidiary.