HS Orka receives result from arbitration proceedings on PPA validity in Iceland
Icelandic HS Orka, a 75%-owned subsidiary of Canadian Alterra Power Corp, receives results from arbitration proceedings on the validity of a PPA agreement between HS Orka and aluminum firm Nordurál Helguvik.
As announced by Canadian Alterra Power Corp., HS Orka hf, a 75%-owned subsidiary of the company, “has received results from an arbitration proceeding concerning the validity of a power purchase agreement between HS Orka and Norðurál Helguvík ehf, under which HS Orka would supply power to a new aluminum smelter that Norðurál is constructing in Helguvík, Iceland.
The results of the arbitration were mixed, with each party succeeding on certain aspects of their claims. While the award confirmed a contingent obligation for HS Orka to deliver a portion of the power for the new smelter, this requirement remains subject to the satisfaction of a number of conditions that the tribunal ruled have not yet been fulfilled. The tribunal dismissed Norðurál’s claim for damages.
HS Orka will work with Norðurál to seek a satisfactory resolution to all issues arising out of the award.”
Source: Company release by email