Landsvirkjun in Iceland Announces New Renewable Energy Power Purchase Agreement with PCC

REYKJAVIK, Iceland--(BUSINESS WIRE)--Landsvirkjun today announced that it has signed a new power purchase agreement (PPA) with PCC BakkiSilicon hf, an Icelandic subsidiary of the Germany-based industry holding PCC SE. Under this new contract, Landsvirkjun will provide clean, renewable energy to power a metallurgical grade silicon metal production plant being built by PCC in Bakki near Husavik on Iceland's north coast. The 32,000 ton facility is scheduled to come online in late 2015 and will require 52 megawatts (MW) of power, or 456 gigawatt-hours (GWh) annually, which will be derived from renewable sources such as geothermal and hydro.

“We feel a great commitment and support from all our Icelandic partners and will on our side do our best to pioneer the industrial development in Bakki, where we see excellent conditions to make this plant happen.”

“We are very pleased to diversify our customer base by welcoming PCC and this new industry into our growing portfolio. We are optimistic that silicon metal production has good long-term prospects in Iceland where power is generated from 100% green renewable energy sources at the most competitive terms available in Europe,” said Hordur Arnarson, CEO of Landsvirkjun. “Furthermore, northeastern Iceland is one of Europe's most exciting new industrial development areas and an ideal location for this venture given its natural geothermal resources, existing infrastructure, and the support of the local community.”

“During the past 18 months, PCC has experienced an outstandingly professional and trustful cooperation with Landsvirkjun, and having signed the power contract today constitutes an important milestone to our silicon metal project” says Waldemar Preussner, sole owner of PCC SE. “We feel a great commitment and support from all our Icelandic partners and will on our side do our best to pioneer the industrial development in Bakki, where we see excellent conditions to make this plant happen.”

Landsvirkjun is one of Europe’s leading renewable energy companies and processes 75% of all electricity in Iceland. By signing this long-term PPA of 15 years, Landsvirkjun continues to reaffirm the competitive business environment in Iceland. Currently the contract is subject to certain conditions precedent including permits, an agreement with the Icelandic transmission system Landsnet, the government of Iceland and financing set to be finalized before May 2013.

To learn more about renewable energy in Iceland visit www.landsvirkjun.com.

About Landsvirkjun:

Landsvirkjun generates green renewable energy at competitive prices. The company is 100% owned by the Icelandic State and has over 45 years of experience generating electricity from hydro and geothermal power sources. Landsvirkjun is Iceland‘s largest generator of electricity, currently operating 15 renewable hydro- and geothermal power stations, and one of the ten largest renewable energy companies in Europe. Landsvirkjun´s mission is to maximize value creation from energy sources entrusted to the company in a sustainable and efficient manner.

About PCC SE:

PCC is a global group of companies operating under the leadership of PCC SE Holding based in Duisburg, Germany. Comprised of more than 70 subsidiaries, PCC Group includes a workforce of about 2,300 employees located in 12 countries. Group sales are generated through PCC’s three divisions - Chemicals, Energy and Logistics - with a 2011 turnover totaling 614.8 million EUR. PCC on the internet: www.pcc.eu