Landsvirkjun and Norðurál Grundartangi ehf. reached the May agreement to extend the 161 MW Electricity Agreement, which was originally made in 1997, on terms that reflect electricity prices in the markets. The signing of the agreement requested that the EFTA Surveillance Authority (ESA) preview be resembled. That preview has now been concluded with a positive conclusion, and the parties have signed an existing agreement, which is still subject to conditions.

The signed agreement will now be sent to ESA for formal and final consideration. The agency is expected to be available before the beginning of the year.

The extended contract is for a four-year period and amounts to 161 MW, which is almost one-third of the energy requirement of the plant at Grundartangi. Renewed agreement will take effect in November 2019 and will be valid until the end of 2023. The current agreement will remain in force until the end of October 2019.

A renewed agreement is linked to the electricity market price of the Nord Pool electricity market, replacing aluminum price connections in the current agreement.