Segment

PCC Bakki Silicon and United Silicon at Helguvík have recently joined Landsvirkjun’s team of clients. This is a clear indication of rapid growth within the silicon metal industry.

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Segment

PCC

The German company, PCC Silicon, is one of two new power-intensive customers who signed contracts with Landsvirkjun in 2015.

PCC began construction on a metallurgical grade silicon metal production plant in Húsavík in the second part of 2015. The facility is expected to begin operations at the end of 2017 and is expected to be fully operational by February of 2018. The production capacity of the plant is estimated to reach 32,000 tonnes per year.

An estimated 700 employees will be involved in the construction of the facility during theconstruction period and 120 employees will be employed at the facility once it becomes operational.

The power purchase agreement (PPA) for the supply of 58 MW of power and 400 GWh of electricity was signed in March of this year.

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A computer generated image of the PCC plant in Husavik
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Power purchase agreement ratified

Landsvirkjun and PCC BakkiSilicon signed a power purchase agreement in March and the lifting of all ‘conditions precedent’ was announced in June. 

These conditions included the full approval of the contract by the EFTA Surveillance Authority (ESA). In 2014, the EFTA Surveillance Authority (ESA) decided to investigate the power contract and the transmission agreement between the two parties to assess any state aid involvement. The investigation was completed at the beginning of 2015.

The power purchase agreement was ratified and both parties became bound by the contract once all licenses had been procured and funding had been secured.

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Segment

United Silicon

United Silicon continued construction on a metallurgical grade silicon metal production plant at Helguvík in 2015. Landsvirkjun is expected to begin supplying power to United Silicon in the summer of 2016.

United Silicon was established by a consortium of firms within the European metallurgical grade silicon metal industry. Construction on the project began in the summer of 2014 and the capacity of the plant is expected to reach 20,000 tonnes per year. United Silicon plans to expand its operations and has secured a production permit for up to 100,000 tonnes per year.

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The United Silicon Plant by the port in Helguvík in Reykjanes