New German silicon factory for north Iceland?

A declaration of co-operation will be signed tomorrow for the construction of a 66,000 tonne/year silicon factory planned for Bakki near the north-eastern Icelandic town of Husavik by the German company PCC.

Negotiations are ongoing with Landsvirkjun about the provision of electricity to the proposed new plant from a geothermal field at Theistareykir.

PCC is the only company which submitted a formal proposal for the industrial lot at Bakki and negotiations between the company and the Nordurthing local government have been taking place over the last month. The Nordurthing council yesterday received an application from PCC to begin formal co-operation on preparing the project and bringing it to fruition. The application includes a request for a long-term lease on the 20-hectare plot; which is one tenth the total area of land at Bakki which has been zoned for energy intensive industrial development. PCC representatives will arrive in North Iceland tomorrow to sign the declaration of co-operation.

The power requirements of the proposed silicon plant would be around 30 MW, according to initial discussions between PCC and Landsvirkjun. Hordur Arnarson, the president of Landsvirkjun, would not confirm to RUV whether or not PCC will be the first customer for electricity produced at Theistareykir. He says several companies are assessing their options in the region and emphasised that energy purchase contracts are complicated and take a long time to complete.

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