The price of running an aluminium smelter in Iceland is 34% lower than the worlds average according to Icelandic power company Öskju Energy, Kjarninn reports.
Askja Energy Partners 2016
The average price of aluminium smelting has dropped by 12% worldwide in recent times, primarily due to a decline in aluminium prices. Smelting uses huge amounts of power, making Iceland’s cheaper geothermal and hydroelectric energy a tempting prospect for smelting, and it’s common that power purchase agreements are linked with fluctuations in aluminium prices.
The highest measured price of aluminium smelting is currently in China, where it costs about $45 (USD) per megawatt. In Iceland, however, the national power company Landsvirkjun received an average of $25.5 (USD) per megawatt last year, most of which was used by heavy industry businesses.