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MEI Online: Plant Operation News: Europe: June 10th 2003


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:: Alcoa Chooses Bechtel and Icelandic Consortium HRV To Build Project in East Iceland

Alcoa has announced that it has chosen Bechtel and its partner, an Icelandic engineering consortium, HRV (Honnun, Rafhonnun, VST), to design and build its new plant in East Iceland, which is being designed for production of 322,000-metric-ton-per-year of primary aluminum.

"We are pleased to have a project team that combines the global breadth of Bechtel and the best talent from Iceland, to leverage the more than 100 years of Alcoa expertise in primary metals," said Mike Baltzell, President of Alcoa Primary Metals Development. "By leveraging Alcoa's leading technology and expertise in metals, the team can design and create a world-class facility that also meets the unique needs of the East Iceland community," he said.

Bechtel and the Icelandic group plan to maximize the use of Icelandic firms and local workers on the project. Design work on the project will begin in the second half of 2003, but work on the site is not expected to start until the fourth quarter of 2005. The project is expected to cost approximately $1 billion and will be completed in the second half of 2007.

Bechtel and HRV, with support from K-Home Engineering, will work with Alcoa to design an ultra-efficient plant that has minimal environmental impact. The design will not incorporate an on-site disposal area for spent pot lining, a by-product of the aluminum production process. Carbon anodes will not be manufactured at the Iceland plant, eliminating a source of sulfur dioxide (SO2), nitrogen oxide (NOX) and hydrocarbon (PAH) emissions. The plant will be designed to achieve Alcoa's strict, self-imposed sustainable development objectives, including zero process water discharge.

Bechtel will perform engineering, procurement, and project management functions in Montreal, home of its global Aluminum Center of Excellence. Bechtel established the center in 2002 to strengthen its commitment to Quebec, while recognizing Montreal as a world center for the aluminum industry.




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