OREANDA-NEWS. June 16, 2011. JSC RusHydro (ticker symbol: RTS, MICEX, LSE: HYDR; OTCQX: RSHYY) announces that it signed a cooperation agreement with Reykjavik Geothermal which defines the terms of cooperation in geothermal power projects. 

The parties are working together to set up a joint venture (JV) which will focus on the construction of geothermal power plants with total installed capacity of up to 200 MW. RusHydro will hold a controlling stake in the JV and act as an investor, and Reykjavik Geothermal will manage the projects.

RusHydro is also considering similar projects in Russia with total installed capacity of 100 MW or more and can create a 100% subsidiary for this purpose.

Deputy Chairman of the Management Board of RusHydro, George Rizhinashvili, commented: "We believe that there is great unharnessed potential for development of geothermal power in Russia and abroad and hope that cooperation with highly professional team of Reykjavik Geothermal in carrying out joint projects will be mutually favorable".

CEO of Reykjavik Geothermal commented: "We believe that the cooperation with RusHydro is going to speed up the development of the geothermal potential in the world and also open up for Reykjavik Geothermal the vast opportunities in Russian technology for use in geothermal projects".

Reykjavik Geothermal was founded in 2008. The management team's track record spans over 30 countries and includes spearheading the development of one of the world's largest geothermal power plant. Reykjavik Geothermal is currently active in Africa, Russia, Oceania, and the Caribbean.