Foreign Investment Possibility for Helguvík Smelter - The Reykjavik Grapevine

Foreign Investment Possibility for Helguvík Smelter

Published October 21, 2010

There is a strong chance that foreign companies may be asked to build a power plant to provide energy for an aluminium smelter in Helguvík.
RÛV reports that the Þingeyjarsysla Regional Development Agency has asked the investment group Saga-Capital to look into attracting foreign investors to finance the building of a power plant for the area, as the regional power isn’t enough to support both the smelter and the power needs of other residents and businesses in the area.
The idea was introduced to the Industry Committee of parliament yesterday. The argument put forward was that in addition to a lack of available electricity, the state just doesn’t have the funds to finance the building of another power station. The Þingeyjarsysla Regional Development Agency would like to see a foreign party cover half the power needs of the region, or about 300 megawatts, at a cost of about 200 billion ISK.
Should this plan be pursued, it is estimated that the investors would have to be given at least temporary ownership of the power plant, after which time the plant would move under public ownership.
A vote on the matter is still pending. No politician has yet commented on the plan.

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