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Njörður, an innovation company that aims to build a magnesium production plant at Grundartangi, is working intensively to prepare the first production trial in Iceland, which is expected to take place at the end of the summer. The production is based on a novel technology for extracting magnesium from seawater.

“We recently completed the scoping document, which forms part of the environmental assessment process and are now awaiting the conclusion of the Icelandic Regulatory Agency. We then expect to begin installation and testing in July,” says Stefán Ás Ingvarsson, CEO of Njörður.

He says that the production trial involves setting up an integrated production line. “At the moment, we are testing each individual piece of equipment that forms part of the production line. These include both equipment that we manufacture ourselves and equipment manufactured by vendors.”

Part of this preparation includes the hiring of a new employee who will oversee the development of the plant at Grundartangi. “Many different parties will be involved in the production trial, including the Scandinavian engineering firm AFRY, which has worked on the project for several years and is responsible for the design of the plant. However, we realized that there would be significant value for us in bringing in a new employee who will oversee the production trial and transfer that knowledge when it comes to the development of the plant itself.”

ISK 30 billion project

Construction of the plant cannot begin until the environmental assessment has been completed and all required permits have been obtained. According to Stefán, the aim is to begin construction in autumn 2027. According to current plans, the project represents an investment of approximately ISK 30 to 35 billion.

Once the plant reaches full capacity, production is expected to amount to approximately 50,000 tonnes of magnesium per year, generating around ISK 40 to 60 billion in annual export revenues. The company also estimates that the new plant will create approximately 300 jobs.