Power Secured for PCC’s Factory in North Iceland Skip to content

Power Secured for PCC’s Factory in North Iceland

Landsvirkjun, the national power company, and PCC BakkiSilicon hf., a subsidiary of the German PCC SE, have reached an agreement on the sale of electricity to a silicon metal factory the company plans to operate at Bakki by Húsavík in northeast Iceland.


Húsavík. Photo by Páll Stefánsson.

A similar agreement had already been made with Thorsil ehf. which is also planning to build a silicon metal factory at Bakki, Morgunblaðið reports.

“We have worked with the German company for some time and this is another good step in our collaboration,” commented Bergur Elías Ágústsson, who chairs the local municipality, Norðurþing.

An environmental impact assessment is scheduled to be completed in December this year, Bergur said. Service agreements regarding the lease of a lot, harbor rights and related issues are underway and an operating license from the state is yet to be obtained. Funding is expected to be completed by May 2013.

“If everything works out, we hope that constructions can begin next spring,” Bergur stated, adding that the goal is for the factory to be constructed in two stages and for operations to begin at the end of 2015 once the first stage has been finished.

To begin with, around 80 people can find work at the factory but once fully operational, 140-150 jobs can be created.

After the first stage the factory will have the annual production capacity of 32,000 tons, requiring 52 MW of energy. Eventually, the production capacity is expected to be 66,000 tons per year.

Click here to read more about Thorsil’s plans.


Sign up for our weekly newsletter

Get news from Iceland, photos, and in-depth stories delivered to your inbox every week!

* indicates required

Subscribe to Iceland Review

In-depth stories and high-quality photography showcasing life in Iceland!

Share article