Agreement reached on energy sale to Helguvík Skip to content

Agreement reached on energy sale to Helguvík

Nordurál and Sudurnes Energy Company signed an agreement yesterday on the sale of energy for Nordurál’s planned smelter in Helguvík on Reykjanes peninsula, south of Reykjavík.

According to the agreement, Sudurnes Energy Company will provide the Nordurál smelter in Helguvík with electricity; it will provide 150 megawatts for the first production stage, which could be used for producing 150,000 tons of aluminum. Fréttabladid reports.

“It is pleasing that this agreement has been reached,” said Júlíus Jónsson, director of Sudurnes Energy Company.

“We have very good experience of cooperation with Nordurál and we look at this project as an opportunity for a profitable power harnessing which will strengthen the economy here in south Iceland and enlarge our market territory,” Jónsson added.

The group Sól í Sudurnesjum (“Sun in Sudurnes”) which is against the planned smelter in Helguvík said they were saddened by the agreement, as reports.

Preparations for the smelter have been in place since 2005, when Reykjanesbaer, Sudurnes Energy Company and Nordurál signed an agreement on cooperating on a feasibility study.

If everything goes according to plan, operations could begin by the end of this year and electricity for aluminum production could be delivered in 2010.

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