SOURCE: Landsvirkjun

Landsvirkjun

February 18, 2011 10:41 ET

Iceland Energy Company Signs New Agreement to Power Silicon Metal Factory

REYKJAVIK, ICELAND--(Marketwire - February 18, 2011) - Iceland energy company Landsvirkjun has recently signed a Power Purchase Agreement to power a new silicon metal factory for the Icelandic Silicon Corporation.

As part of the agreement, Landsvirkjun will provide energy for the Icelandic Silicon Corporation's new 40,000-ton silicon metal production facility in Helguvik, Southwest Iceland. The plant will require 65 MW of power when it comes online in mid-2013; initially, Landsvirkjun will provide 35 MW of energy with the remaining 30 MW supplied by HS Orka. However, from January 2016, Landsvirkjun will supply all of the energy to the plant.

"We have been aiming to increase the diversity of our client base. This agreement is an example of the materialization of that strategy. Silicon metal represents a new industry in our portfolio, which we believe has good long-term prospects in Iceland, where power is generated from renewable energy sources only," commented CEO at Landsvirkjun, Dr. Hordur Arnarson.

Furthermore, Magnus Bjarnason, Executive VP of Marketing and Business Development at Landsvirkjun, mentioned that the deal is confirmation of the favorable terms Landsvirkjun can offer towards industrial companies: "I'm absolutely sure that we offer the most competitive terms on new Greenfield Power Purchase Agreements (PPA) today using 100% Green Renewable Energy."

The contract agreement is subject to standard conditions precedent, including approval of both companies' Boards of Directors and other conditions that the Icelandic Silicon Corporation will complete no later than June 15, 2011. The parties have agreed to keep the price confidential at present time.

For more information about Landsvirkjun, visit http://www.landsvirkjun.com/.

Landsvirkjun is one of Europe's leading renewable energy companies with 1900 MW installed capacity.

Contact Information

  • Landsvirkjun Media Contact:
    Ragna Sara Jonsdottir
    Head of Corporate Communications
    +354 849 2122
    sara@lv.is