Landsvirkjun, the national power company, and Thorsil ehf. have made an agreement on the conditions of a long-term contract on electricity purchase for a silicon metal factory Thorsil intends to construct and operate at Bakki near Húsavík in northeast Iceland.
Húsavík. Archive photo by Páll Stefánsson.
The estimated production cost is ISK 37 billion (USD 294 million, EUR 233 million) and it is assumed that 158 employees will work at the factory. Construction is scheduled to start in 2013, Morgunblaðið reports.
Managing director of Thorsil Hákon Björnsson said during the first stage a factory with the annual production capacity of 53,000 tons is planned.
However, the company’s executives would like to have the option of enlarging the factory in the future, possibly reaching a capacity of 100,000 tons.
The agreement between Landsvirkjun and Thorsil is not a finalized energy agreement; it will not be completed until other loose ends have been tied, one of which is an environmental impact assessment which takes 10-11 months. Funding is another.
Click here to read more about large-scale industrial projects at Bakki.