July 15, 2014 - Silicor Materials, Inc. announced today that it has selected a site at the port of Grundartangi in Iceland for its first large-scale solar silicon production facility.
"With significant quantities of material shipped and support from a global roster of satisfied customers, the company's products are eagerly awaited by customers in a number of diverse industries. We anticipate strong, swift interest from the investment community and look forward to bringing this game-changing organization to Iceland."
Silicor has engaged Arion Bank to lead the debt financing for the plant, which would create as many as 400 full-time jobs in addition to up to 100 construction positions. Centra Corporate Finance was chosen to raise equity for the project.
"When we consider the potential sites for our first commercial-scale plant, Iceland is a leading candidate for a number of reasons," said Theresa Jester, CEO of Silicor Materials. "In addition to its world-class manufacturing and transportation infrastructure, the country provides low-cost renewable energy, enabling Silicor to produce the only truly ‘green' silicon in the world. Further, Iceland ranks among the top aluminum producers worldwide, providing Silicor with a built-in market for its premium aluminum-based products. With the support of Arion Bank, we are well positioned to bring this venture to realization."
The company's Iceland facility will have a nameplate capacity of 16,000 metric tons, with the ability to yield up to 19,000 metric tons of solar silicon each year. Once all phases of the project are complete, the company will produce at a cash cost of $9/kg, with a roadmap for substantial further cost reductions.
"Silicor has the unique potential to tap several massive industries through one process," said Craig Wellen, CFO of Silicor Materials. "With significant quantities of material shipped and support from a global roster of satisfied customers, the company's products are eagerly awaited by customers in a number of diverse industries. We anticipate strong, swift interest from the investment community and look forward to bringing this game-changing organization to Iceland."
The company selected the Grundartangi site with support from the Associated Icelandic Ports. "Silicor offers a tremendous economic development opportunity to the Icelandic community, all without compromising its dedication to environmental stewardship," said Gisli Gislason, Director for the Associated Icelandic Ports. "Simply put, this facility is a win-win opportunity for Iceland and Silicor."
Silicor has obtained heads of terms, and a letter of intent from Landsvirkjun and Orka Náttúrunnar (ON Power) respectively to supply 100-percent renewable energy to power plant operations. SMS Siemag has signed on to supply the majority of the facility's production equipment.
Pending final negotiations, Silicor aims to break ground later this year and accelerate construction to bring the plant online in 2016.