PCC Bakki are rather secretive about how well their silicon metal smelter in North Iceland is performing. They have not published any news on their website since December last year and their Facebook page gives limited information. Both are only in Icelandic.
However, the German site of the holding company has more recent news, dated April 30: “Our silicon metal production facility in Iceland currently operates with only one furnace. We shut down the second one due to a technical malfunction and it will remain out of operation until the plant constructor has carried out the projected modification of the roof. However, due to travel restrictions because of the coronavirus pandemic, this modification is likely to be postponed to the summer of this year“.
The holding company has an 87% share in PCC Bakki, the remainder being in the hands of Íslandsbanki bank and pension funds.
The PCC Quarterly Report 1/2020 is equally illuminating. Talking about the PCC company as a whole, it says: “The performance of PCC BakkiSilicon hf., Húsavík (Iceland), was adversely affected by the severe winter which lasted into April this year and led to several production interruptions during the quarter. The production output of PCC BakkiSilicon hf. was therefore significantly lower than planned, with corresponding effects on volume and sales. … The earnings for the first quarter of 2020 were likewise below our expectations and down on the previous year. The gross profit ratio declined compared to preceding quarters. The main reasons for this development … were the losses incurred by PCC BakkiSilicon hf.”
Towards the end of the report, more information is revealed. After repeating that Iceland’s severe winter weather had been detrimental to the smelter’s performance, the report goes on to say: “Moreover, PCC BakkiSilicon hf. remained unable to fully benefit from the slightly rising price level for silicon metal as a number of old contracts still had to be serviced at low prices during the first quarter. Meanwhile, one of the two arc furnaces has had to be entirely shut down due to the effects of Covid-19 and will probably not be put back into operation until completion by the plant construction contractor of the rehabilitation work on the roof of the facility’s filter house. Due to coronavirus restrictions, this rebuild planned for May will probably be delayed until summer 2020. The second furnace is presently operating stably. Our team on site is also currently working flat out on the implementation of various measures to increase efficiency and thus reduce costs in order to sustainably improve the earnings situation over the long term.”
However, it seems, from their Facebook page, that they have indeed being trying to start up the problematic arc furnace in May – unless their “stable” furnace has also been having problems. There are posts dated May 5, May 8, May 14, May 15 and May 28, which detail “cleaning” of one of the furnaces (twice), a broken electrode, unspecified repair work and maintenance work. In each case they warn that white or light-coloured smoke could be expected to emanate from the plant, and sometimes odour is mentioned.
Despite all the problems the PCC plant has been encountering with its “best available technology”, on the other side of Iceland Stakksberg (owned by Arion bank) is still trying to sell the silicon smelter that was owned and operated by United Silicon until it was closed down. Stakksberg have produced an environmental impact assessment for the Helguvik smelter that is composed of a number of separate files, probably in the hope that if the EIA gets approved the smelter will be easier to sell. The EIA is initially aimed at operating one furnace, but this will be stepped up to four furnaces in due course.
One of the files is from the Norwegian Institute for Air Research, NILU. Considering that odour and respiratory problems were frequent complaints from local residents when the Helguvik smelter was operating, it is somewhat pathetic that NILU cannot provide better information that “While there have been several measurement studies around Norwegian metallurgic industries, no studies especially link emissions to odor and/or health impacts on the nearest neighbours. Nevertheless, we have included summary of three older studies, which we believe are relevant even if the source of emissions is not silicon industries.”
I haven’t read the whole EIA, but it would be interesting to know if those responsible for it have probed into the problems at PCC’s smelter at Bakki in the north of Iceland and taken account of the problems encountered there – including such basics as “severe winter weather”. I doubt they have.
Update: PCC have announced that they will be closing their silicon smelter at Bakki, supposedly on a temporary basis. They blame COVID-19 – there has been less demand and prices are lower. There is (as yet) nothing on their website, or the international PCC website, or PCC Bakki Facebook page, but here is a report in Icdelandic giving more information. I will write another blog soon about it.