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Icelands Largest Electricity Producer Announces Agreement to Supply Renewable Energy Power with PCC

Renewable Energies to supply 52 Megawatts for Silicon Metal plant in Iceland

REYKJAVIK, Iceland - Landsvirkjun, Icelands largest producer of electric power, has announced that it has entered into a new power purchase agreement with PCC BakkiSilicon hf.

Under the agreement, clean renewable energy will be provided to power a metallurgical grade silicon metal production plant being built by PCC in Bakki near Husavik on Iceland's north coast.

The 32,000 ton facility is scheduled to come online in late 2015 and will require 52 megawatts (MW) of power, or 456 gigawatt-hours (GWh) annually, which will be derived from renewable sources such as geothermal and hydro.

“We feel a great commitment and support from all our Icelandic partners and will on our side do our best to pioneer the industrial development in Bakki, where we see excellent conditions to make this plant happen.”

“We are very pleased to diversify our customer base by welcoming PCC and this new industry into our growing portfolio. We are optimistic that silicon metal production has good long-term prospects in Iceland where power is generated from 100% green renewable energy sources at the most competitive terms available in Europe,” said Hordur Arnarson, CEO of Landsvirkjun. “Furthermore, northeastern Iceland is one of Europe's most exciting new industrial development areas and an ideal location for this venture given its natural geothermal resources, existing infrastructure, and the support of the local community.”

“During the past 18 months, PCC has experienced an outstandingly professional and trustful cooperation with Landsvirkjun, and having signed the power contract today constitutes an important milestone to our silicon metal project” says Waldemar Preussner, sole owner of PCC SE. “We feel a great commitment and support from all our Icelandic partners and will on our side do our best to pioneer the industrial development in Bakki, where we see excellent conditions to make this plant happen.”