Norðurál and HS Orka begin 50-megawatt power deal

A new electricity supply agreement between Norðurál and HS Orka took effect Thursday, providing 50 megawatts of power for Norðurál’s aluminium smelter at Grundartangi, mbl.is reported.

The agreement was signed last autumn and runs through September 2031. Norðurál has bought electricity from HS Orka since the smelter began operating in 1998.

HS Orka chief executive Tómas Már Sigurðsson said Norðurál had been one of the company’s most important customers for more than 25 years. He said the smelter’s steady, predictable electricity use suited production from geothermal power plants and that the new agreement would strengthen the companies’ cooperation.

Norðurál chief executive Gunnar Guðlaugsson said predictable, secure access to renewable electricity was fundamental to the company’s operations. He said the companies’ long-running partnership enabled Norðurál to produce what he described as the world’s most environmentally friendly aluminium.

HS Orka owns and operates five power plants: two geothermal plants on the Reykjanes Peninsula and three hydropower plants in South, East and West Iceland. The company is also considering other power projects around the country, which are at different stages of development.