SOURCE: Landsvirkjun

Landsvirkjun

June 25, 2012 12:50 ET

Landsvirkjun Announces New Renewable Energy Power Purchase Agreement With Geothermal Metal Recycling

REYKJAVIK, ICELAND--(Marketwire - Jun 25, 2012) - Landsvirkjun and GMR Endurvinnslan ehf. (Geothermal Metal Recycling - GMR) announced on Monday June 25 that the two companies have agreed on terms for a new power purchase agreement (PPA).

Under this new contract, Landsvirkjun will provide clean, renewable energy to power a steel and scrap metal recycling plant at the Grundartangi industrial area on Iceland's southwest coast. The power purchase agreement commits Landsvirkjun to provide GMR with up to 10 MW of power for a seven year period.

In addition to recycling for export, the steel will be partially sourced and resold to and from Iceland's substantial aluminum smelting industry, which accounts for about 2 percent of the world's primary aluminum output. The recycling plant is currently under construction and is scheduled to begin operations in early 2013. The initial production output is expected to start at approximately 30.000 tons per year with the capacity to scale up to 100.000 tons per year.

"We are very pleased to announce our agreement with GMR today. The company represents a strong addition to our customer base and increases its diversity which is one of the key components of Landsvirkjun's marketing strategy. It's great to see increased value creation develop on the basis of Iceland's current industry and aluminum production, which have been built over the past decades. GMR's operation is also good for the environment since it enables efficient recycling using renewable energy," said Hordur Arnarson, CEO of Landsvirkjun.

Landsvirkjun, one of Europe's leading renewable energy companies, generates 75 percent of all electricity in Iceland and is the country's biggest electric generator. By signing this PPA, Landsvirkjun continues to reaffirm the competitive business environment in Iceland.

To learn more about renewable energy in Iceland visit www.landsvirkjun.com.

Contact Information

  • Contact:
    Magnus Thor Gylfason
    Landsvirkjun Acting Director Corporate Communications
    magnusth@lv.is
    Tel: +354 515 9000