A new Power Purchase Agreement between Norðurál and HS Orka, for the supply of 50 megawatts of electricity for the operations of Norðurál's aluminum smelter in Grundartangi, takes effect today, October 1. The contract was signed last fall and is valid though September 2031.
The new agreement marks an important milestone in the cooperation between the companies, as Norðurál has purchased electricity from HS Orka ever since the smelter began operations in 1998.
Tómas Már Sigurðsson, CEO of HS Orka: "Norðurál has been one of HS Orka's most important customers for over 25 years, and it is very gratifying to reach an agreement on continued cooperation. Norðurál's electricity consumption is well suited to the production of electricity from geothermal power plants, where energy consumption is stable and predictable. With this agreement, a new path into the future begins, which will undoubtedly empower the companies to do good things."
Gunnar Guðlaugsson, CEO of Norðurál: "It is gratifying that a new electricity contract has been signed. Predictability and secure access to renewable electricity are the foundation of our operations, which is why it is very important to have reliable partners like HS Orka. The cooperation between the companies has been very good in recent decades, ever since Norðurál was founded, and with renewable electricity from HS Orka, we produce the most environmentally friendly aluminum in the world. I am convinced that the new agreement will further strengthen the cooperation between the companies in the future."
HS Orka owns and operates five power plants, two geothermal power stations on the Reykjanes peninsula and three hydropower plants in the south, east and west of Iceland. Other power plant options around the country are being considered by the company and their development is at different stages.
Norðurál is one of the largest industrial companies in Iceland and one of the largest buyers of Icelandic electricity. The company uses the electricity for the most part to process pure aluminum from aluminum oxide in the aluminum plant at Grundartangi and produce aluminum and aluminum alloys for the international market. Norðurál has achieved good results in limiting greenhouse gas emissions, reducing waste, and improving the utilization of raw materials. The use of environmentally friendly energy sources is therefore crucial, and clear environmental awareness plays a key role in all stages of production.
