🇮🇸 Landsvirkjun and Norðurál sign a 7-year power purchase agreement

March 24, 2026

Norðurál and Landsvirkjun have signed an agreement for the supply of electricity to the aluminium smelter at Grundartangi, covering the period from the beginning of 2027 through the end of 2033.

A trusted partnership spanning 30 years

Landsvirkjun has supplied the smelter with electricity since its inception, with the first agreement signed in 1997 for approximately 100 MW. Over the course of a successful long-term business relationship, the contracted volume has steadily increased to support expanded production and value-added products at the smelter. In recent years, electricity sales have exceeded 200 MW, representing more than one-third of the smelter’s total energy demand.

If conditions in Landsvirkjun’s power system allow, the agreement provides for additional supply to the smelter, enabling Norðurál to maximise its production.

The agreement is beneficial for both companies and strengthens the smelter’s operational foundation in the years ahead.

Gunnar Guðlaugsson, CEO of Norðurál:

“It is very welcome that Landsvirkjun and Norðurál have reached agreement on a new power contract. It ensures predictability, which is crucial for our operations, particularly in light of the challenging conditions currently affecting energy development in Iceland. We also hope the agreement will further strengthen the strong business relationship between Norðurál and Landsvirkjun.”

Hörður Arnarson, CEO of Landsvirkjun:

“It is pleasing to see the business relationship between Landsvirkjun and Norðurál grow even stronger. The companies have worked together for nearly three decades, during which time the smelter, one of the pillars of Iceland’s exports, has grown and prospered. Landsvirkjun has supported the smelter throughout this development, most recently through increased supply in 2024 in connection with a new casthouse, and now also with additional supply for operations when conditions in our power system allow. We at Landsvirkjun look forward to continued collaboration.”

Originally published on March 24, 2026 by Landsvirkjun.