Upcoming silicon plant and new hydropower station

The National Power Company of Iceland, Landsvirkjun, will provide electricity to a new power a metallurgical grade silicon metal production plant being, built by German PCC Group. The plant is to be constructed in Bakki near Húsavík on Northeast Iceland.

PCC Group is a privately owned industrial holding and participation company based in Duisburg in Germany. The group operates in 16 countries with a total workforce of around 2,800 employees. PCC’s silicon plant in Iceland will be a 32,000 ton facility and is scheduled to start operating in early 2017. It will require 58 MW of power, which will be derived entirely from the renewable energy sources of Icelandic hydro and geothermal power. The contract is subject to certain conditions set to be finalised later this year. These include the appropriate licensing and permit requirements, financing for the project, as well as the approval of the Boards of both parties.

The Icelandic Landsvirkjun is one of Europe’s leading renewable energy companies. Landsvirkjun is Iceland’s largest generator of electricity, currently operating 16 renewable hydro- and geothermal power stations, producing approximately 75% of all electricity in Iceland. The company has for over 45 years generated renewable electricity from hydro, geothermal and onshore wind power sources.

Recently, Landsvirkjun was also starting up its newest hydropower station in Iceland. This is the Búðarháls Hydropower Station, and the official start-up ceremony was on March 7th (2014). The Búðarháls Station is Landsvirkjun’s 16th power station and the seventh largest power station owned and operated by Landsvirkjun. This new station utilises the 40 metre head in the Tungnaá River from the tail water of the Hrauneyjafoss Hydropower Station to the Sultartangi Reservoir. The installed capacity of the Búðarháls Hydropower Station is 95 MW and it will generate approximately 585 GWh of electricity per year for the national grid. Most of the electricity added by Búðarháls has already been purchased by long term agreement with Rio Tinto Alcan’s smelter in Straumsvík in Southwestern Iceland.