Landsvirkjun

Landsvirkjun prepares electricity contract with Thorsil

23. October 2015

Draft of contract sent to EFTA (ESA)

Landsvirkjun and Thorsil have reached an agreement on a draft contract between the two companies. The contract is for the supply of electricity to Thorsil’s new silicon plant in Helguvík. Landsvirkjun has decided to send the draft of the contract to the ESA (the EFTA Surveillance Authority) so that it may be entered into the pre-notification phase and will await their decision before the contract is discussed and a final decision made by Landsvirkjun’s Board.

The finalisation of the contract is subject to certain provisos which include the approval of both company boards and the approval of the ESA (the contract must comply with the requirements and conditions set out by the Surveillance Authority).

The Thorsil Silicon Plant is expected to begin operations in the first quarter of 2018. According to the draft contract, Landsvirkjun will supply Thorsil with anything up to 67 MW of electricity if everything goes according to plan. The energy will be supplied in phases from Landsvirkjun’s current power station network and from the proposed expansion of the Búrfell Hydropower Station. The energy supply for the last phase will be provided by Landsvirkjun once the Hvammsvirkjun Hydropower Station begins operations in the middle of 2020.

Thorsil would become Landsvirkjun’s third silicon industry client.

Hörður Arnarson, Landsvirkjun’s CEO, made the following statement: “We have enjoyed a successful partnership with Thorsil and hope that the ESA will process the draft contract as soon as possible. The contract would be advantageous to both parties and once again confirms the tremendous demand for electricity in Iceland today and the competitive terms offered by Landsvirkjun”.

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