By Greentech Lead Europe: Landsvirkjun, a state owned
renewable energy producer in Iceland has entered into a power purchase
agreement (PPA) with Geothermal Metal Recycling (GMR). Under this new contract,
GMR will purchase up to 10 MW of clean, renewable energy for a seven year
period from Landsvirkjun.
The clean energy supplied by Landsvirkjun will be
utilized to power GMR’s steel and scrap metal recycling plant at the
Grundartangi industrial area on Iceland’s southwest coast. The recycling plant
is currently under construction and is scheduled to begin operations in early
2013. The initial production output is expected to start at approximately
30.000 tons per year with the capacity to scale up to 100.000 tons per year.
“We are very pleased to announce our agreement with
GMR today. The company represents a strong addition to our customer base and
increases its diversity which is one of the key components of Landsvirkjun’s
marketing strategy. It’s great to see increased value creation develop on the
basis of Iceland’s current industry and aluminum production, which have been
built over the past decades. GMR’s operation is also good for the environment
since it enables efficient recycling using renewable energy,” said Hordur
Arnarson, CEO of Landsvirkjun.
Landsvirkjun generates 75 percent of all electricity in
Iceland and is the country’s biggest electric generator. By signing this PPA,
Landsvirkjun continues to reaffirm the competitive business environment in
Iceland.