Landsvirkjun (www.landsvirkjun.com), a renewable energy company based in Reykjavik, Iceland, and GMR Endurvinnslan ehf (Geothermal Metal Recycling - GMR) have agreed on a geothermal and hydro-power purchase agreement.
Under the contract, Landsvirkjun will provide the energy to power a metal recycling plant at the Grundartangi industrial area in Iceland. The power purchase agreement commits Landsvirkjun to provide GMR with up to 10 megawatts of power for a seven-year period.
The scrap recycling plant is currently under construction and is scheduled to begin operating in early 2013. The initial production output at the plant is expected to start at about 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,” says Hordur Arnarson, CEO of Landsvirkjun. “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.”