Landsvirkjun and PCC Bakki Silicon Sign a Power Purchase Agreement

March 18, 2014

Landsvirkjun, the National Power Company of Iceland, announced that it has signed a new power purchase agreement (PPA) with PCC Bakki Silicon hf. Under this agreement, Landsvirkjun will provide electricity to power a metallurgical grade silicon metal production plant being built by PCC Bakki Silicon in Bakki near Husavik on Iceland's north-east coast. The 32,000 ton facility is scheduled to commence operations in early 2017 and will require 58 megawatts (MW) of power which will be derived entirely from the renewable energy sources of hydro and geothermal power in Iceland.

'We are very pleased to sign this contract as Landsvirkjun moves towards a more diverse customer base and we welcome PCC Bakki Silicon and the silicon metal industry into our growing group of customers. We are confident that silicon metal production will thrive in Iceland for the long term, where power is generated from 100% renewable energy sources. Conditions are excellent for power-intensive industries to grow in Iceland and to gain a valuable competitive advantage in Europe and globally,' commented Dr. Hordur Arnarson, CEO of Landsvirkjun. 'We are also very pleased that our long-standing collaboration with PCC Bakki Silicon is progressing in a significant way and we look forward to taking on this new stage of our partnership.'

'During the past few years, PCC Bakki Silicon has been working diligently to develop our silicon metal plant project in Bakki where we believe first-rate conditions exist to build and operate a silicon metal plant. We have enjoyed strong commitment and support from our Icelandic partners as well as local and national authorities. Our cooperation with Landsvirkjun has been professional and trustworthy and the signature of the power contract constitutes a highly important milestone in our project,' commented Peter Wenzel, Board Member of PCC Bakki Silicon.

The contract is subject to certain conditions set to be finalised later this year. These include the appropriate licensing and permit requirements, financing for the project as well as the approval of the Boards of both parties.

Landsvirkjun is one of Europe's leading renewable energy companies and produces 73% of all electricity in Iceland. By signing this long-term PPA Landsvirkjun continues to reaffirm the competitive business environment in Iceland. To learn more about renewable energy in Iceland visit www.landsvirkjun.com.

About Landsvirkjun

Landsvirkjun is the National Power Company of Iceland and has for over 45 years generated renewable electricity from hydro, geothermal and onshore wind power sources. Landsvirkjun is Iceland's largest generator of electricity, currently operating 16 renewable hydro- and geothermal power stations. Landsvirkjun's mission is to maximise value creation from energy sources entrusted to the company in a sustainable and efficient manner.

About PCC SE

PCC SE is a privately owned industrial holding and participation company based in Duisburg, Germany. The group operates in 16 countries with a total workforce of around 2,800 employees. The three main divisions - Chemicals, Logistics and Energy - generated a sales turnover of 625 million EUR for the fiscal year 2013. More about PCC SE on the internet www.pcc.eu.

For more information:


Magnus Thor Gylfason, Director Corporate Communica
Tel: +354 515 9000
E-mail: magnusth@lv.is

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