This is among items covered in a renewed memorandum of understanding between the companies which Bernt Reitan, Executive Vice President of Alcoa and Fridrik Sophusson, CEO of Landsvirkjun signed last week.

Landsvirkjun and Þeistareykir ehf will during the duration of the MOU to 2009 drill ten experimental boreholes to check the available energy at the geothermal areas of Thingeyjarsysla district in N- Iceland. Alcoa will take part in costs incurred by the experimental drilling, according to a more detailed agreement to be negotiated between the companies. Current plans call for an aluminum smelter using 400 MW of electricity. If more electricity becomes available, the parties have agreed to discuss the possibilities that it would be used for a smelter at Bakki.