Landsvirkjun, the National Power Company of Iceland, and Elkem have signed a new electricity supply contract for the Grundartangi industrial area, extending their agreement until 2039. The deal was first reported by Viðskiptablaðið and has since been confirmed by other Icelandic media.
The new agreement will take effect in April 2029, following the expiry of the companies’ previous contract, which had been set to run until 2029. The volume of power supplied will remain unchanged at 127 megawatts under the new deal.
According to Landsvirkjun, pricing from April 2029 will be determined by a fixed minimum price, with a partial link to the market price of ferrosilicon. The contract will support Elkem’s continued operations at Grundartangi, which is among the world’s largest producers of silicon iron.
Landsvirkjun said its commercial relationship with Elkem dates back to 1975. “The companies’ commercial relationship dates back to 1975,” a spokesperson for Landsvirkjun was quoted as saying (translated from Icelandic).
Background
Landsvirkjun, the National Power Company of Iceland, is the country’s largest electricity generator, operating 21 power stations across Iceland. It was established in 1965 by the state of Iceland and the city of Reykjavík.
Grundartangi, in Hvalfjarðarsveit, hosts a major iron-alloy smelter and an aluminium plant, and includes one of Iceland’s largest ports, operated by Associated Icelandic Ports (Faxaflóahafnir) and owned by several local municipalities.
Sources
- Viðskiptablaðið (first reported) in Icelandic
- Vísir in Icelandic
- mbl.is in Icelandic
- Skagafréttir in Icelandic
Image: Steinninn / Wikimedia Commons (CC BY-SA 4.0) · licence, original (resized) Illustrative image.
