Landsvirkjun, Iceland’s national power company, has announced it wants to restart construction on Búðarhálsvirjun which will dam Tungnaá and Köldukvísi rivers in South Iceland, this year. The company has just sent out tenders for machinery and electrical equipment while a tender for construction work would go out this autumn. Work on the dam and reservoir would start first, while the company
waits for the legal processes for the three Þjórsá dams to be finished before it open tenders for the planned power plants of the Þjórsá and Búðarháls dams.
Landvirkjun says it is under pressure from a contract with Rio Tinto Alcan, to supply electricity for the Straumsvik smelter, expanding it’s production from 183.000 to ~ 223.000 metric tons per year, which requires an extra 75 MW of power (1). Búðarhálsvirkjun, would produce 80 MW, somewhat less than the original estimate of 100 MW (2). The remainder is to go to the Verne Holding data centre in Keflavik. The dam, projected to be 2400 m long and 24m high and would create the 8 km2 Sporðöldulón reservoir next to Hrauneyafoss. The cost is expected to be around 23.2 billion krona (192 million euro) (3).
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