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Landsvirkjun and Thorsil sign power purchase agreement

May 10, 2016
Hörður Arnarson, CEO of Landsvirkjun, and Hákon Björnsson, CEO of Thorsil, signed the agreement. Also on the picture are Jón Sveinsson, Landsvirkjun Head Council, and Eyþór Arnalds, member of the board of Thorsil.

Landsvirkjun and Thorsil have signed a power purchase agreement for the supply of electricity to Thorsil’s silicon metal plant in Helguvík. Landsvirkjun will supply the plant with up to 55 MW of power which is equivalent to 460 GW of energy annually. The silicon metal plant is scheduled to begin operations in 2018.

The energy will be handed over in phases from Landsvirkjun’s current power station network.The agreement is subject to certain conditions and will also need to be approved by the EFTA Surveillance Authority to become fully valid.

The silicon metal plant will produce 54,000 tonnes of metallurgical grade silicon annually and will use 87 MW (or 730 GWh annually) of electrical energy to achieve this. The plant will employ around 130 employees.

Hörður Arnarson, CEO of Landsvirkjun made the following statement:

“Thorsil is a welcome addition to Landsvirkjun’s client base and to the broader industrial development taking place in the Reykjanesbær area. The agreement is advantageous for both parties and in accordance with Landsvirkjun’s policy of securing favourable prices for renewable energy, sourced from Iceland’s natural resources.”

John Fenger, Chairman of the Board at Thorsil made the following statement:

“Signing this contract with Landsvirkjun is the final step in the thorough preparation process for this project. The contract means that Thorsil has now secured all the power requirements for its silicon metal plant in Helguvík. We look forward to our cooperation with Landsvirkjun and are pleased to have the opportunity to utilise environmentally friendly energy to produce metallurgical grade silicon, thus reducing the human impact on the environment.”

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