Landsvirkjun in Iceland Announces New Renewable Energy Power Purchase Agreement with PCC

PCC subsidiary PCC BakkiSilicon to purchase power for silicon metal plant in Iceland.

Landsvirkjun today announced that it has signed a new power purchase agreement (PPA) with PCC BakkiSilicon hf, an Icelandic subsidiary of the Germany-based industry holding PCC SE. Under this new contract, Landsvirkjun will provide clean, renewable energy to power a metallurgical grade silicon metal production plant being built by PCC in Bakki near Husavik on Iceland’s north coast. The 32,000 ton facility is scheduled to come online in late 2015 and will require 52 megawatts (MW) of power, or 456 gigawatt-hours (GWh) annually, which will be derived from renewable sources such as geothermal and hydro.

“We are very pleased to diversify our customer base by welcoming PCC and this new industry into our growing portfolio. We are optimistic that silicon metal production has good long-term prospects in Iceland where power is generated from 100% green renewable energy sources at the most competitive terms available in Europe,” said Hordur Arnarson, CEO of Landsvirkjun. “Furthermore, northeastern Iceland is one of Europe’s most exciting new industrial development areas and an ideal location for this venture given its natural geothermal resources, existing infrastructure, and the support of the local community.”

“During the past 18 months, PCC has experienced an outstandingly professional and trustful cooperation with Landsvirkjun, and having signed the power contract today constitutes an important milestone to our silicon metal project” says Waldemar Preussner, sole owner of PCC SE. “We feel a great commitment and support from all our Icelandic partners and will on our side do our best to pioneer the industrial development in Bakki, where we see excellent conditions to make this plant happen.”

Landsvirkjun, one of Europe’s leading renewable energy companies, processes 75% of all electricity in Iceland and is the country’s biggest electric generator. By signing this long-term PPA of 15 years, Landsvirkjun continues to reaffirm the competitive business environment in Iceland. Currently the contract is subject to certain conditions precedent including permits, an agreement with the Icelandic transmission system Landsnet, the government of Iceland and financing set to be finalized before May 2013.

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