Silicon Metal powered by Nature

The production process is very energy-intensive, which is why Iceland, with its rich geothermal and hydroelectric power sources and comparatively low electricity costs, was the obvious choice für PCC SE to build a Silicon Metal production facility. Our Silicon Metal plant of the Group company PCC BakkiSilicon hf. is located in northern Iceland, near the small town of Húsavík, and uses electricity from the rich geothermal resources Iceland is known for.

Iceland’s biggest energy utility Landsvirkjun supplies our production facility with climate friendly electricity under economically favorable conditions, and even developed a new geothermal energy source close to Húsavík and constructed a 90 MW power plant serving the entire new industrial area. The ensuing logistical costs for delivery of the raw materials to Iceland and shipment of the Silicon Metal to customers abroad are more than outweighed by the advantages in electricity procurement – both from an economic and an ecological point of view.

By supplying the production with electricity exclusively from Iceland’s rich renewable energy sources, our plant has significantly lower greenhouse gas emissions than comparable plants worldwide. As a result, the carbon footprint of applications that use the Silicon Metal we produce in Iceland as a feedstock or component is also significantly smaller.


PCC BakkiSilicon is not only extraordinarily climate friendly but also complies with highest environmental standards concerning its impact on the region, i.e. the Norðurþing area around the small town of Húsavík. PCC BakkiSilicon identifies its significant resource use, waste, emissions and the nearby community as a driving force for change in innovation and sustainable development within heavy industry.

Close monitoring and strategic ways to reduce greenhouse gas emissions will be held throughout the lifetime of the plant for example by use of renewable energy and biofuels. PCC BakkiSilicon hf. further plans to take part in projects to offset emissions by reforestation and recovery of wetlands in Iceland.

Biodiversity in the surrounding ocean and freshwater is of the upmost importance. The nearest town, Húsavík, is known for whale watching tourism and therefore PCC BakkiSilicon hf. will make sure that discharge from the plant is in compliance with environmental limits to protect the ecosystem.

Regular measurements on soil, vegetation, sound and hay, will take place to monitor effect on land due to emissions after the plant is commissioned. This is done to take care of the biodiversity in the nearby environment.

Sustainable geothermal energy is used to power the plant and continuous improvement in energy use will be adhered.

The plant has a closed water-cooling system, making the use of water as sustainable as possible.

The kitchen will be encouraged to reduce waste during food preparation and use local sourced food whenever possible. In addition, all staff will be encouraged to handle food with care and reduce waste.

For both economic and environmental sustainability, material use will be as efficient as possible.

Will be handled with care and all measures taken to avoid release into the environment. When possible, PCC BakkiSilicon hf. will use environmentally friendly chemicals.

All waste is sorted and weighed to closely monitor improvements in waste reduction. All measures are taken for waste to be reused or recycled as close to the plant as possible. PCC BakkiSilicon hf. will pursue a strategic approach to zero waste.

PCC BakkiSilicon hf. takes its social responsibility seriously and will continuously work on increasing its respect and promoting its image by respecting laws and regulations. We aim to have positive effects on the community by taking part in social responsibility projects.

Our Community

With the realization of the first industrial plant of such magnitude, a new chapter in the development of the Norðurþing area has commenced. The vision of a new era in this part of Iceland, with attractive, qualified workplaces emerging at the Bakki industrial site, and improvement and growth for the community in many aspects, had been in the people’s minds for a long time. And PCC was welcomed with open arms to initiate this development with the investment into a world-class, future-oriented silicon metal plant which seemed to be the ideal fit.

Of course, the unparalleled nature around Húsavik constitutes an asset which needs to be protected. Therefore, the visuals and acoustics of the area, the quality of the air as well as other environmental aspects are aimed to be impacted as little as possible by our plant. We are aware of our responsibility to act in a broadly sustainable manner, and we will encourage an open exchange and discussion within our community in this regard.

The project would not have been realized without the trust and confidence from all ours partners, firstly of course from the people of Húsavik, but also from all other equally important stakeholders as the Icelandic Government, our customers, our power and transmission service suppliers with their own large investments, and, last but not least, our financing partners.

We at PCC BakkiSilion hf. are grateful for all this trust, support and the openness towards the new, and we aim to make this joint effort a success for us all!