• Iceland’s power utility company Landsvirkjun supplies electricity for metallurgical production of silicon metal at PCC BakkiSilicon
• The energy need of 58 megawatts will be covered using renewable sources from 2017
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Duisburg, on 19 March 2014. PCC BakkiSilicon, part of the multinational PCC Group, signed a Power Purchase Agreement (PPA) with Iceland’s largest power utility Landsvirkjun for the planned construction of a new silicon metal production plant in Iceland. PCC BakkiSilicon plans to launch a plant producing 32,000 metric tons of this material annually in Bakki, Iceland, in 2017. Landsvirkjun will cover the energy need of 58 megawatts from 100 percent renewable energies.
Photo: Dr. Peter Wenzel, Board Member of PCC BakkiSilicon (left) and Dr. Hordur Arnarson, CEO of Landsvirkjun.
“During the past few years, PCC BakkiSilicon has put intensive work into the development of our silicon metal plant project in Bakki. Iceland offers first-rate conditions to build and operate a silicon processing plant. We have enjoyed strong commitment and support from our Icelandic partners and the country’s national authorities. Today’s signature on the cooperation with Landsvirkjun marks another important milestone in our project,” says Dr. Peter Wenzel, Board Member of PCC BakkiSilicon.
“We are pleased to be adding PCC BakkiSilicon to our client base. We are convinced that Iceland offers optimum long-term perspectives for energy-intensive industries like silicon metal production. Our ability to generate 100 percent of our energy from renewable sources strengthens our competitive advantage in Europe and globally,” says Dr. Hordur Arnarson, CEO of Landsvirkjun.
The contract is subject to certain conditions set to be finalized later this year. These include the appropriate licensing and permit requirements, financing for the project as well as the approval of the supervisory and administrative boards of both parties. Landsvirkjun is Iceland’s national power utility, covering 73 percent of Iceland’s energy need. The company currently operates a total of 16 hydropower, wind, and geothermal power plants. The company is one of the largest power utilities in Europe and a leader in electricity production from renewables sources.
PPA: Direct power purchase agreement
A power purchase agreement (PPA) is an agreement between an electricity producer and an electricity consumer concluded for a certain period of time. First schemes of this kind have been successfully implemented in the US, South Africa, Scandinavia, and other regions for several years. The special feature of a PPA is that power is delivered directly to one or more clients, instead of the operator of the electricity grid.