ON Power (ON) and Silicor Materials have signed a PPA for 40 megawatts of electricity to the US company's project at Grundartangi, Iceland, which will produce solar-grade silicon.
The agreement raises the price of ON’s renewable energy significantly and it is not linked to the price of the product's buyer.
Paul Erland, CEO of ON Power: "This is a good deal for ON Power. First, we ensure the sale of the energy that was unsold. Second, we get a significantly higher price it. Third, we reduce risks, both by excluding energy transmission from the contract and the price is not related to product prices. It is also positive that our green energy production is now utilized for furthering generation of renewable energy in the world."
Terry Jester, Chairman and CEO Silicor Materials: “It is important to Silicor to produce its environmentally friendly solar silicon here in Iceland using clean, renewable energy. We are pleased to reach a power purchase agreement that is beneficial to both our company and to ON, and we look forward to a successful long-term collaboration.”