Feb 24 2011
Landsvirkjun, an energy company in Iceland, has signed a Power Purchase Agreement (PPA) with the Icelandic Silicon, a new 40,000 ton silicon metal factory for providing energy.
This factory is located in Helguvik, in Southwest Iceland and would need 65 MW of power when it starts commercial operations by the middle of 2013. Landsvirkjun is initially providing only 35 MW of energy and the rest of the 30 MW would be supplied by HS Orka. However Landsvirkjun would supply the entire 65 MW of energy from January 2016. Dr. Hordur Arnarson, the CEO of Landsvirkjun, revealed that the company has wanted to increase the client base diversity. The PPA is an illustration of the strategy employed by the company for this cause. According to him, silicon metal has good prospects in Iceland and it represents a new industry for them.
Landsvirkjun’s Executive Vice President of Marketing and Business Development, Magnus Bjarnason has stated that the agreement validates the fact that Landsvirkjun offers industrial companies favorable terms. He further mentioned that he was completely sure that they were offering the best competitive terms on new the Greenfield PPAs with 100 % renewable energy. The agreement is subject to the normal conditions precedent such as approval given by both the companies’ Boards of Directors. The other condition stipulated is that the Icelandic Silicon would be completed not later than 15th July of 2011. The price has been kept confidential for now.