KÁRAHNJÚKAR HEP WEC Executive Assembly 2009September 2009 in Reykjavík, Iceland

Bjarni Bjarnason

CEO of Landsvirkjun PowerMember of the Board of IHA

1971 1976 1981 1986 1991 1996 2001 2006

20.000

16.000

12.000

8.000

4.000

0

Thermal

Nuclear

Hydro

Coal and peat41.0%

Gas20.1% Oil

5.8%

Hydro16.0%

Other 0.6%

Nuclear14.8%

TWh

Other

World electricity generation by fuel1971 to 2006

2006

IEA Energy Statistics

Iceland – Geological Setting

H

Greenland

L

L

LL

20°70°

60°

50°

ReykjavíkIceland

Greenland

10° 10°0

Bergen

England

Sweden

Skotland

Orkneys

NetherlandsHamburg

Germany

Faeroe Islands Norway

Denmark

Ireland

Shetland

1250 km

Possible Submarine Cable Routes

Electricity Production by Sources1983-2010

0

2000

4000

6000

8000

10.000

12.000

14.000

16.000

18.000

'84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10

Geothermal

Oil

Hydropower

'83

GWh/a

0

10.000

20.000

30.000

40.000

50.000

60.000

Electricity Consumption per Capita 2006kWh/a

Source: IEA, Key World Energy Statistics, 2008

2008

OE

CD

Non

-OE

CD

Eur

ope

Wor

ld

Latin

Am

eric

a

Asi

a

Afri

ca

Icel

and

Nor

way

Can

ada

Uni

ted

Sta

tes

Aus

tralia

Japa

n

Chi

na

Life cycle analysis

0

200

400

600

800

1.000

1.200

Coal Gas Solar Geothermal Vind Nuclear Hydro

gCO2/kWh

Min Max

Reference: WEC 2007

CO2 Emissions for Different Power Sources

Total CO2 emissions in aluminiumproduction, by energy source

Energy productionSmelting

0

4

8

12

16

Coal Oil Natural gas Hydro

kg CO2 /kg Al

Geothermal

Installed capacity 690 MWEnergy production 5.0 TWh/aGross head 600 mHight of Kárahnjúkar dam 200 mTunnels 73 kmConstruction time 2003-2009

Kárahnjúkar Hydropower Project690 MW, Built 2003-2009

Kárahnjúkar Hydroelectric Project

AlcoaFjarðaál

Egilsstaðir

Reyðarfjörður

FL 3&42x220 kV

Mývatn

Krafla60 MW

Bjarnarflag3 MW

Kröflulína 2132 kV

132 kV

132 kV

Kárahnjúkar HEP690 MW

Kára-hnjúkar

Headracetunnel

Hálslónreservoir

FljotsdalsstöðPowerhouse

Kelduárlónreservoir

V A T N A J Ö K U L L G L A C I E R

Ufsalónreservoir N

Kárahnjúkar HEP800 m a.s.l.

Pressure shaftHeadrace tunnel

Power station26,5

m a.s.l.

625 m a.s.l.Kárahnjúkar dam Longitude section

July 12th 2007

650

500

400

540

625 630,5

600

550

450Upstreamcofferdam

Rockfill

Concrete face slab

Concrete toe wall

m a.s.l.

Grout curtain

Cross Section

Earth fill

Kárahnjúkar Dam

Hálslón Reservoir57 km2 when full

Kárahnjúkar Dam CFRD

June 2, 2006

September 2005

Melting Ice and snow with hot water

Winter day at the dam

December 2006

July 2006

Kárahnjúkar dam

Desjará Dam

630 625m a.s.l.

620

590

610

600

630,5

RockfillGravedfilter

Wave protection

Morainecore

Cross Section

Grout curtain

Slope protection

July 20, 2008

Kárahnjúkar Dam

TBM 1TBM 2TBM 3Drill & Blast 1Drill & Blast 2Drill & Blast 3Drill & Blast 4Drill & Blast 5Drill & Blast 6

Adit 1

Adit 2

Adit 3Adit 4

Power intake

Surge tunnel

Drainage tunnel

Jökulsá diversion tunnelø 7,2 m

Headrace tunnelø 7,6 m

Headrace tunnelø 7,2 m

TBM 2 bored10.3 km

TBM 1 bored14.7 km

TBM 2 bored8.5 km

TBM 3 bored14.6 km

Tunnel alignment

TBM machine, dia 7.2-7.6 m

March 2004

Penstock

Powerhouse

Headracetunnel

Tailracetunnel

Tailrace-canal

Surgeshaft

Kárahnjúkar HEPPowerhouse Area

Adittunnel

Kárahnjúkar HEPPowerhouse area

Substation

Tailrace tunnel

Entrance buildingCable tunnel

Access tunnel

Fljótsdalsstöðpowerhouse

Pressure shafts

Transformer hall

Valve chamber (intake)

Tailracecanal

Transformer hall

Powerhouse

Tailrace tunnel

Cable Tunnel

Access Tunnel

Pressure shafts

Smoke exhaust tunnel

Powerhouse AreaUnderground Structures

Kárahnjúkar Penstockin Comparison with the Highest Skyscrapers

CN-TowerToronto555 m

Sears TowerChicago520 m

Taipai 101Taipai509

Petronas Twin TowersKuala Lumpur

452 m

Empire State BuildingNew York443 m

KarahnjukarVertical Penstock

420 m

Source: Stahlbau GmbH

Powerhouse June 2008

Switchgearhouse Service

building

Accesstunnel

Kárahnjúkar Hydroelectric ProjectPowerhouse Area

Control and staff building at access tunnelto Powerhouse in Fljótsdalur, 10.09.2009

Fljótsdalur July 20, 2008

AlcoaFjarðaál

Reyðarfjörður

0 5 km

Powerhouse

Transmission lines

Avalanche Towers

Alcoa - Fjarðaál 346,000 tpa

August 2008

• Generates 5 TWh of electricity per annum

• Avoids some 5 million tons of CO2 per annum

compared to coal fired generation

• Similar to total CO2 emissions of Iceland

• Produces 340,000 tpa of aluminum

• It is not the size that matters – but the quality !

Project summary

Project summary

69%

33%7%

75%

22%

~70%

Source: World Atlas of Hydropower & Dams,

Only about 1/3 of the potential has been developed

Global hydro production: ~ 2900TWh/y in 2006Realistic potential production: ~ 8600 TWh/y

Thank you for your attention