In December 2018, Reykjavik Geothermal obtained a reconnaissance license from Orkustofnun (the National Energy Authority in Iceland), to undertake surface exploration activities in and around the Bolaalda area in the Ölfus municipality in south-western Iceland, about a 25-minute drive from Reykjavik. The reconnaissance area covers 65 km2.
The project aim is to harness this potential high-temperature area to build a geothermal power plant with installed electric capacity of up to 100 MWe, and thermal capacity as the market may require.
The following table shows the main parameters for the planned/anticipated Bolaalda geothermal power plant.
| Main parameters | Unit | |
| Installed electric capacity | 100 | MWe |
| Thermal capacity depending on demand | 0-100 | MWth |
| Electric power | 814.7 | GWh/year |
| Utilization time | 8.147 | Hours/year |
| Size of utilization area | 10-20 | km2 |
An Environmental and Social Impact Assessment (ESIA) resulting in an Environmental Permit is not required for the reconnaissance license which gives the right to undertake surface exploration activities without assessment of the environmental impact and that are intended to assess geological, geochemical and geophysical characteristics for the purpose of determining if the land or area may have geothermal resources.
The reconnaissance license will be renewed in late 2021 based on first results from resistivity studies.
