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New silicon metal plant

United-Silicon-Plant-Helguvik-Iceland-illustrationA new silicon plant is being constructed in Southwest Iceland. Earlier this week, the Icelandic National Power Company (Landsvirkjun) and United Silicon announced that all conditions precedent had been lifted with regard to the power purchase agreement signed by the two parties in last March. Now, all the conditions of the agreement which included the issuance of permits, electricity transmission contracts and financing, have been fulfilled. The boards of both companies have confirmed the agreement.

According to the contract, Landsvirkjun will provide electricity to power a metallurgical grade silicon metal plant being built by United Silicon in Helguvik in Southwest Iceland. United Silicon intends to begin construction on the plant this summer (2014) and ground preparation work is already underway in the area. The facility is expected to start operations in early 2016 and will require 35 MW of power capacity. The plant will create around 70 permanent jobs, while 250 people will be working on the construction.

Hordur-Arnarson-CEO-of-Landsvirkjun-and-Magnus-Gardarsson-CEO-of-United-SiliconUnited Silicon is a company established by a conglomerate of silicon industry participants in Europe, which have taken the initiative to establish a silicon production plant for the growing consumption of their customers in Europe. Following the decision to establish the plant in Iceland, United Silicon has finalised purchase of all the shares in the Icelandic company Stakksbraut 9 Ltd., which owns the land in Helguvík. The Environmental Impact Assessment for the plant, was concluded and approved by the Icelandic Planning Agency in 2013. United Silicon has been working with the Icelandic Arion bank, which has concluded financing for the project (through senior bank debt and a forthcoming bond issue).

This is the second major industrial project announced in Iceland in this month. Few days ago Silicor Materials, a manufacturer of solar silicon and a producer of aluminum by-products, announced its solar silicon production facility to be built in Iceland. That plant also has power agreement with Landsvirkjun, which is Iceland largest energy firm and a cooperative partner with the Icelandic Energy Portal.