Business & Government Jul 29, 2014

Iceland’s Renewable Energy Business Grows

A new facility in Iceland will require 35 MW of power, which will be derived from 100% renewable resources.


After announcing a power purchase agreement in March to build a silicon metal plant on Iceland’s south west coast, Landsvirkjun and United Silicon have officially finalized the contract. The 20,000 ton facility is scheduled to open in early 2016 and will require 35 megawatts (MW) of power which will be derived entirely from the renewable hydro and geothermal energy sources in Iceland.

Landsvirkjun, the National Power Company of Iceland, is one of Europe’s leading renewable energy companies and produces 73% of all electricity in Iceland. Although United Silicon evaluated options in Middle East and Malaysia, they decided to build “the plant in Iceland, where we believe excellent conditions exist to build and operate a silicon metal plant,” said Joseph Dignam, board member of United Silicon. “We feel strong support from our Icelandic partners, the local and larger community…” he added. In addition to offering power generated from 100% renewable energy sources, Landsvirkjun says the natural conditions in Iceland benefit power-intensive industries.

Dr. Hordur Arnarson, CEO of Landsvirkjun said: “We have cooperated closely with United Silicon in the last few months and the confirmation of this power purchase agreement marks a significant milestone in the development for the silicon metal industry in Iceland.” By signing this long-term PPA Landsvirkjun continues to reaffirm the competitive business environment in Iceland.

About Landsvirkjun

Landsvirkjun is the National Power Company of Iceland and has for over 45 years generated renewable electricity from hydro, geothermal and onshore wind power sources. Landsvirkjun is Iceland‘s largest generator of electricity, currently operating 16 renewable hyrdo and geothermal power stations. Landsvirkjun’s mission is to maximize value creation from energy sources entrusted to the company in a sustainable and efficient manner. To learn more about renewable energy in Iceland, visit