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Next-Gen Geothermal Funding 2026: VCs, Banks, Government Capital

Who Is Really Funding Next-Gen Geothermal in 2026? Next-generation geothermal has moved beyond laboratory research into a capital-intensive commercialization phase. In 2026, the most important financing is no longer coming from one investor category: venture capital funds are financing drilling, subsurface modelling and hardware; strategic energy companies are providing equipment, project access and market credibility; banks are beginning to lend against contracted projects; and governments are absorbing exploration and first-of-a-kind technology risk. The strongest financing activity is concentrated in the United States and Canada, but Europe is becoming increasingly important through Germany-based deployment, European Union grants, UK innovation support, and strategic participation from European energy companies. The central investment question is changing from “Can this technology work?” to “Can the developer deliver repeatable, financeable projects at commercial cost?” The 2026 fun...

HS Orka Defies Nine Volcanic Eruptions to Launch Iceland’s Largest-Ever Geothermal Turbine in Svartsengi

Iceland Commissions Its Largest Geothermal Turbine: Seventh Power Plant in Svartsengi Officially Launched

Posted on December 2, 2025 By: Robert Buluma

In a remarkable display of human resilience against nature’s fury, Iceland has officially commissioned its newest and most powerful geothermal power plant expansion. On December 1, 2025, the seventh power plant in Svartsengi was inaugurated in a festive ceremony attended by dignitaries and guests, marking a historic milestone for renewable energy in Iceland.

A 55 MW Giant: The Largest Steam Turbine in Iceland

At the heart of the new facility is a massive 55 MW turbine-generator unit the largest steam turbine ever installed in Iceland. The official unveiling was performed by Iceland’s Minister of the Environment, Energy and Climate, Jóhann Páll Jóhannsson, together with Tómas Már Sigurðsson, CEO of HS Orka.

“Building the newest power plant in Iceland while keeping every original deadline  despite the natural disasters that have struck the Reykjanes peninsula  is an extraordinary achievement,” said Tómas Már Sigurðsson.

Built Through Nine Volcanic Eruptions

Construction began with the groundbreaking in late 2022 and faced unprecedented challenges. Since November 2023, the Sundhnúksgígaröð volcanic system has erupted nine times,forcing repeated evacuations and causing severe gas pollution. The construction site was completely closed for four months from November 2023 to March 2024.

Despite these extreme conditions, the project was completed on schedule and within budget a testament to outstanding coordination between contractors, HS Orka staff, civil protection authorities, and emergency responders.

Key Project Highlights

Total investment: Over 14 billion ISK (~$100 million USD)
New capacity added: Increases Svartsengi’s electricity production by up to one-third
Current total capacity: Approximately 63 MW of electricity + extensive hot water production for district heating
Future potential: Permits already secured for expansion up to 85 MW

The new plant replaces two older units while significantly upgrading equipment related to hot water production for the Greater Reykjavík area.

Major Contractors Behind the Success

Ístak Civil works and site safety coordination  
Rafal Electrical installations  
HD– Mechanical installations  
Verkís & OG Architects – Design  
Fuji Electric (Japan) – Supplied the record-breaking turbine and generator  

At peak construction, up to 120 workers were on site daily, requiring meticulous emergency planning during volcanic alerts.

Svartsengi: Iceland’s First Combined Geothermal Power and Heating Plant

The Svartsengi Power Station, originally built in the 1970s under the name Hitaveita Suðurnesja (predecessor of HS Orka), pioneered the combined production of electricity and hot water from geothermal resources. Over the decades, it has been expanded in six previous phases. This seventh phase represents the largest single upgrade in the plant’s nearly 50-year history.

Why This Matters for Iceland’s Green Energy Future

This project is more than just new megawatts it’s proof that renewable energy infrastructure can be built even in the world’s most geologically active regions. With Iceland already running on nearly 100% renewable electricity, expansions like Svartsengi ensure long-term energy security, support growing demand (including from data centers and industry), and reinforce the country’s position as a global leader in geothermal energy.

As volcanic activity continues on the Reykjanes peninsula, the successful completion of this plant sends a powerful message: where there’s steam, there’s a way.


Congratulations to HS Orka, all contractors, and the resilient teams who turned a volcanic challenge into a renewable energy triumph!



Source: Hs Orka

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