Glitnir, the Nordic financial group, announced today the official opening of a New York office for its US subsidiary Glitnir Capital Corporation.
“Glitnir’s services in the Nordic region span retail, corporate and investment banking, stock trade and capital management. It is a global niche player in three industry segments: renewable/sustainable energy, seafood/food and offshore service vessels. Glitnir Capital Corporation’s operations in New York will focus on these global core segments,” says Jonathan Logan, Managing Director, Glitnir Capital Corporation.
Participants in today’s inauguration included the President of Iceland, Ólafur Ragnar Grímsson; Alexander Karsner, US Assistant Secretary for Energy Efficiency and Renewable Energy; CEO of ThermaSource Louis Capuano, CEO of Geysir Green Energy Ásgeir Margeirsson, Executive Director Karl Gawell of Geothermal Energy Association, along with Glitnir CEO Lárus Welding, Executive Vice President International Banking Magnús Bjarnason, and Jonathan Logan, Managing Director of Glitnir Capital Corporation, as well as Árni Magnússon, Managing Director Glitnir Global Sustainable Energy.
“The United States is indeed a land of opportunity for Glitnir, particularly in the realm of America’s huge geothermal energy potential and Glitnir’s track record as a leading global specialist bank in developing sustainable and environmentally sound energy solutions,” said Glitnir’s CEO Lárus Welding. “Our sponsorship of today’s ‘Steam of Opportunities’ research conference, in coordination with the launch of Glitnir Capital Corporation’s office in the US, is an expression of our commitment to making renewable energy a widespread reality in the United States.”
Glitnir’s commitment to the development of geothermal power is predicated on several research findings, including:
* The potential for development of geothermal power in the USA is enormous. The United States is the leading country with regards to utilization of geothermal energy, and will continue its lead even with the number of projects currently under way. However, resource estimates indicate a potential to increase six-fold the currently installed geothermal capacity in the US, which would also nearly double the currently installed global capacity.
* Compared to other energy sources, geothermal is a very reliable and environmentally low-impact source of heating and electricity. One of the biggest advantages of geothermal power when compared to other renewable sources of energy is the fact that it is a base-load power. This means that electricity is generated around the clock all year round, with a typical utilisation rate of 95+%. The utilisation of geothermal power is therefore very economical, although construction cost per installed MW is relatively high.
* Glitnir estimates that investments of USD 9.5 billion are required in projects currently under development, and that further USD 29.9 billion are needed between now and 2025 to develop and harness future resources. I.e., Glitnir estimates total investment needs for the developable resource capacity between now and 2025 at USD 39.4 billion.
* The geothermal industry in the US is still very fragmented, with relatively few large companies and many small ones. Some of the smaller companies are lacking financial muscle to fully develop projects with potential to be profitable. Therefore Glitnir expects considerable consolidation in the industry over the next few years.
* Successful development of the geothermal industry will require increased capacity of drilling equipment and related human expertise. As the industry is still recovering from the effects of a late 1980s decline, it is crucial to train and educate people to work within the sector.
Jonathan Logan, Managing Director of Glitnir Capital Corporation, said: “The opening of our office in New York is an important step for Glitnir and for our customers worldwide. We are involved in major renewable energy initiatives, and have ambitions to expand activities in our other specialist segments, as well as to provide support to customers in the world’s leading economy. A presence in the United States also represents a solid base from which to expand our considerable seafood/food practice and further develop our offshore service vessels activities.”
“Glitnir is committed to delivering industry-specific financial services, ranging from convenient financing and tailored financial risk consulting, to identifying appropriate industrial partners in other parts of the world. We place great emphasis on industry expertise, and provide a team of specialists who combine financial and industry experience – i.e. people who speak the industry language and are truly at home in both worlds,” added Jonathan Logan.
For more information about Glitnir in the US and geothermal energy:
www.glitnirusa.com
e-mail: energy@glitnirusa.com
For photos: akj@glitnir.no and nancy.goldstein@bm.com
About Glitnir
The financial group Glitnir offers universal banking and financial services with the Nordic region (Iceland, Norway, Sweden, Finland, Denmark) as home base. Glitnir is a leading niche player in three global industry segments; seafood/food, sustainable energy, and offshore service vessels. The group's services include retail, corporate and investment banking, stock trade/brokerage and capital management. Glitnir considers Iceland and Norway its home markets. The Glitnir group has operations in Iceland, Norway, Sweden, Denmark, Finland, the UK, Luxembourg, Russia, Canada and China. Glitnir Capital Corporation’s office in New York was officially opened today. Glitnir is listed on the Icelandic Stock Exchange. For more information: www.glitnirusa.com
About Geothermal Energy
Geothermal energy is defined as heat from the Earth. It is a clean, renewable resource that provides energy in the United States and around the world. It is considered a renewable resource because the heat emanating from the interior of the Earth is essentially limitless. Geothermal energy is contained in underground reservoirs of steam, hot water, and hot dry rocks. The heat continuously flowing from the Earth's interior is estimated to be equivalent to 42 million megawatts of power. The interior of the Earth is expected to remain extremely hot for billions of year to come, ensuring an inexhaustible flow of heat. (Sources: Geothermal Energy Association and the U.S. Dept. of Energy).