Swedish Climeon (www.climeon.com), a clean-technology specialist, has agreed a conditional Skr300million (31 million euros) deal with Icelandic company CP Energy Holding (www.cpenergy.com) to produce 15MW of geothermal electricity in the country.

The order, which is subject to financing being secured, will see the installation of 100 Climeon Heat Power modules at up to 15 sites over a 30-month period.

Climeon has agreed to provide financing for the first phase of seven modules scheduled to be on-line by the end of 2018.

CP Energy Holding will seek government backing plus input from private investors and banks for the remaining 93 150kW units that make up the second phase.

The modules will be installed and operated by the newly established Icelandic company Varmaorka.

Ruben Havsed, Climeon’s head of geothermal sales, said: “Being able to provide a competitive power solution in a market with the world’s lowest energy prices gives us great assurance that our technology will be commercially viable in any geography.”