March 19, 2014
Landsvirkjun, the National Power Company of Iceland, announced that it has signed a new power purchase agreement (PPA) with United Silicon hf. Under this agreement, Landsvirkjun will provide electricity to power a metallurgical grade silicon metal production plant being built by United Silicon in Helguvik near Keflavik on Iceland's south west coast. The 20,000 ton facility is scheduled to commence operations in early 2016 and will require 35 megawatts (MW) of power which will be derived entirely from the renewable energy sources of hydro and geothermal in Iceland.
'We are very pleased and welcome United Silicon and the silicon metal industry into our growing portfolio 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 here are favorable for power-intensive industries to gain a valuable competitive advantage in Europe and globally,' commented Dr. Hordur Arnarson, CEO of Landsvirkjun. 'Moreover, we look forward to our long term cooperation with United Silicon as they establish their new operations and develop plans for future growth. We have been impressed with United Silicon's professionalism and commitment in accomplishing this milestone agreement.'
'During the past year, United Silicon has been evaluating several sites around the world to establish a silicon production facility, there amongst in the Middle East and Malaysia, and we are pleased to have concluded this work and have chosen to establish the plant in Iceland where we believe excellent conditions exist to build and operate a silicon metal plant. We feel strong support from our Icelandic partners, the local and larger community, and we have enjoyed working with Landsvirkjun to achieve the important power contract we signed today (March 19), which really enabled us to make the final decision,' commented Joseph Dignam, board member of United Silicon.
The contract is subject to certain conditions set to be finalised before the end of May.
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
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 United Silicon hf.
United Silicon hf. is a new company established by a conglomerate of silicon industry participants in Europe, which have taken the initiative to establish a silicon production plant for the growing consumption of their customers in Europe. Following the decision to establish the plant in Iceland, United Silicon has finalised purchase of all the shares in the Icelandic company Stakksbraut 9 ehf., which owns the land in Helguvík and had already concluded the Environmental Impact Assessment for the Plant, approved by the Icelandic Planning Agency (Skipulagsstofnun) in May 2013. Thereby the company enters into a fully developed project and concluding the Power Purchase Agreement with Landsvirkjun makes it possible for the company to start construction of the plant this summer. Arion Bank hf. is working together with United Silicon hf. on financing the project, which is expected to take place both through a senior loan as well as junior bond.
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