Silicor Materials, manufacturer of solar silicon and producer of aluminum by-products, announced that it has selected a site at the port of Grundartangi in Iceland for its solar silicon production facility.
Arion Bank in Iceland will take care of the debt financing for the plant, which will create 400 full-time jobs and 100 construction positions.
It is evident that Centra Corporate Finance will raise equity for the project. Company executives held a meeting with Iceland President, Ólafur Ragnar Grímsson, to finalize on incentives of package.
Theresa Jester, CEO, Silicor Materials, said, “Iceland was chosen as a potential site considering the manufacturing and transportation infrastructure and availability of low-cost renewable energy. Iceland produces large quantities of aluminum that will help Silicor with supply of aluminum-based products.”
The company’s Iceland facility will have a capacity of 16,000 metric tons, with the ability to yield up to 19,000 metric tons of solar silicon each year. The company will produce at a cash cost of $9/kg, with a roadmap for further cost reductions. Silicor expects to have facility’s capacity sold out by the end of 2014.
Moreover, the company’s process is environmental friendly and they have completed all permitting formality by Iceland’s Ministry for the Environment.
Silicor’s manufacturing process needs two-thirds less energy than conventional methods and uses no toxic chemicals.
The Silicor manufacturing process requires minimum capital investment with low operating costs. The company selected this Grundartangi site with support from the Associated Icelandic Ports.
Besides, Silicor’s aluminum products, master alloys and polyaluminum chloride are feedstocks for the automotive and wastewater treatment industries.
Craig Wellen, CFO, Silicor Materials, said, “The company anticipates investment community support and looks forward to establishing the organization in Iceland.”
In addition, Silicor has made deals with Landsvirkjun and Orka Náttúrunnar (ON Power) the power producers from Iceland, to supply renewable energy from power plant operations. The plant will be functional by 2016.