Iceland, October 7, 2025
News Summary
Iceland’s renewable electricity and emerging industrial software are accelerating decarbonization across the aluminum supply chain. Icelandic firms like SnerpaPower are providing SaaS energy-management tools to smelters such as Norðurál, while startups like DTE supply real-time molten-metal analysis to boost recycling and process efficiency. The U.S. is also seeing momentum: a proposed Green Aluminum Smelter received initial DOE planning funding, and established firms are exploring low-carbon supply options. Partnerships between technology providers, recyclers and engineering firms aim to reduce emissions, improve energy use, and modernize an industry often hampered by older facilities.
Icelandic renewables and industrial software speed aluminum decarbonization as U.S. funding and partnerships move the needle
The big picture: A mix of Iceland’s near-100% renewable electric grid, new software tools for industrial energy scheduling and material analysis, and U.S. government backing is pushing the aluminum industry toward lower emissions. Key developments include a major U.S. Department of Energy funding path for a new primary smelter, an Icelandic software deal to automate energy use at a large smelter, and new partnerships that bring real-time chemical analysis into molten metal processing.
Top developments and why they matter
The U.S. Department of Energy earmarked $500 million for the Green Aluminum Smelter Project. On January 15 the Energy Department announced a first tranche of $10 million toward its cost-share total of up to $500 million for the project. If built, the Green Aluminum Smelter would be the first new primary smelter built in the U.S. in 45 years and would avoid an estimated 75% of emissions from a traditional smelter due to an energy-efficient design. The DOE also said the high-purity aluminum from the facility would be suitable for national defense, electric vehicles, semiconductors, building and construction, and clean energy applications.
Crowding the top of the technology stack are software services that forecast demand, automate orders, and provide real-time data to cut costs and emissions. SnerpaPower, an Icelandic firm, will provide advanced energy management and flexibility services through its proprietary software platform to one of Century Aluminum’s Icelandic operations. Century Aluminum Company is a Chicago-based firm. Century Aluminum’s Norðurál subsidiary is located in Iceland. Century acquired the Norðurál primary aluminum smelter facility in 2004. Norðurál is one of the biggest primary aluminum smelters of its kind in Europe. Century markets a Natur-Al™ low-carbon aluminum product line from Norðurál. Century bills its Natur-Al product as having one of the lowest CO2 footprints in the world.
Iceland’s grid runs on nearly all hydro and geothermal power, and access to 100% renewable energy is a key part of decarbonization for industrial facilities. Green by Iceland states the Icelandic electricity grid is entirely run on renewable energy from hydro and geothermal resources. Green by Iceland says Iceland’s renewable grid has attracted aluminum smelters that produce aluminum with significantly lower CO2 emissions than if powered by fossil fuels such as coal and natural gas. Iceland’s electricity profile has also helped spawn startups that export technology and services to aluminum makers elsewhere rather than exporting only raw metal.
Software, data centers, and grid dynamics
SnerpaPower’s platform enables facilities to automate their power schedules for maximum efficiency. In a press statement, SnerpaPower said it will provide Norðurál with advanced energy management and flexibility services through its proprietary software platform. SnerpaPower said its solutions enable Norðurál to optimize and automate power schedules and orders while fulfilling contractual obligations and supporting power grid stability. The company also provides real-time data and automated electricity forecasting for ports and for data centers to cut costs, simplify operations, improve energy efficiency, and reduce local carbon emissions.
At the same time, the data center construction boom has complicated electric market dynamics. RTO Insider has reported that MISO has shifted its near-term emphasis to natural gas while continuing to add renewables. MISO is a 15-state grid. MISO has been an early adopter of wind energy. MISO has turned its attention to solar energy in recent years. The Southern Renewable Energy Association projected almost 13.8 gigawatts of added solar capacity in the MISO grid over about the next three years (projection noted in September). Under the current state of federal energy policy the surge in renewable energy has slowed.
Recycling, sensors and real-time metal analysis
On the materials side, a Reykjavik-based startup has partnered with a major aluminum maker to raise recycled content targets and improve scrap use. DTE announced a strategic partnership with Ramboll to deliver integrated real-time chemical analysis solutions for the aluminum industry. DTE’s core technology is LP-LIBS™ (Liquid-Phase Laser-Induced Breakdown Spectroscopy), enabling in-situ elemental analysis of molten metal. DTE’s LP-LIBS™ provides reference-grade elemental analysis directly from molten metal. The DTE–Ramboll collaboration aims to embed DTE’s analyzers directly into manufacturing environments to replace traditional sampling methods. The collaboration aims to streamline production workflows, enhance process control, improve scrap utilization, and increase energy efficiency in aluminum production. Ramboll was founded in Denmark and operates in 35 countries. Ramboll employs more than 18,000 experts. Ramboll was established in 1945.
Novelis participated in DTE’s $16 million Series A2 financing round in 2023. Reykjavik-based startup DTE has partnered with American aluminum company Novelis to help Novelis increase its recycled content target to 75%. DTE’s proprietary technology uses advanced sensors to provide real-time data analyzing the composition of aluminum as it is melted down, helping incorporate scrap without compromising quality. Manual sampling of molten metals is wasteful and hazardous, and automation is expected to steadily replace manual sampling processes in aluminum production.
Ports, data centers, and industrial coexistence
Faxaflóahafnir is the Associated Icelandic Ports and a leading port manager in Reykjavík. Faxaflóahafnir has been addressing carbon emissions from ships that dock at its facilities. Faxaflóahafnir provided shore power connections to smaller cruise ships as an alternative to maritime fuel. Faxaflóahafnir is working on the more complex challenge of providing shore connections for larger ships. SnerpaPower noted in June that upcoming large-scale shore power projects and increased ship connectivity will significantly raise the harbour’s electricity demand. SnerpaPower said rising harbour electricity demand poses challenges for power distribution and infrastructure operations, making predictability, planning, and efficiency in electricity procurement critical.
At the same time, SnerpaPower worked with the Icelandic data center firm atNorth. atNorth published a 2024 sustainability report describing carbon-reducing actions across its data centers in the Nordics. atNorth attracts clients seeking economical, low-carbon data center platforms. atNorth cited one client, Shearwater Geoservices, which reported an 84% cost savings and a 92% reduction in carbon emissions after moving operations to atNorth. SnerpaPower posted a case study in January that credited its software with helping atNorth. atNorth’s Operations Director Örn Ingvi Jónsson said SnerpaPower’s software has simultaneously minimized deviations and improved the accuracy of our electricity purchases. Örn Ingvi Jónsson said SnerpaPower significantly streamlined daily operations, optimized electricity orders, and made scheduling and ordering fully automatic and optimized for multiple sites, resulting in reduced imbalance energy and lower costs.
Labor and local operations
Alcoa, the Union of Icelandic Electrical Workers (RSÍ), and the Union of General and Special Workers in East Iceland (AFL) negotiated a collective agreement and canceled a planned strike vote. The Alcoa collective agreement applies retroactively from March and will remain in effect for four years. RSÍ said the agreement’s terms are comparable to other collective agreements that have been made in the power industry recently. RSÍ thanked the state mediator and welcomed that a joint solution had been reached. The Fjarðaál smelter in eastern Iceland was opened in June 2007 and has been functioning since April 2008.
Why this matters for electrification and vehicle supply chains
The vehicle electrification movement is driving attention to decarbonization across industries that support EV manufacturers, including the aluminum industry. Aluminum is omnipresent in modern life but its production has a heavy carbon footprint. The aluminum sector accounts for about 2% of global electricity consumption and about 2% of global CO2 emissions. Access to 100% renewable energy is a key part of decarbonization for industrial facilities. Large industrial facilities must balance power needs with grid reliability protocols and the availability of economical rates.
What to watch next
- Whether the Green Aluminum Smelter Project moves past Phase I and where the proposed U.S. site will be located.
- How software platforms that automate electricity scheduling scale to other large users and ports facing rising shore power demand.
- How LP-LIBS™ and similar real-time analysis tools affect scrap use, safety, and energy intensity at aluminum plants.
- How grid choices in the MISO region respond to the balance of renewables, natural gas, and new demand from data centers and industry.
FAQ
Q: Where is Century Aluminum based?
A: Century Aluminum Company is a Chicago-based firm.
Q: Where is Norðurál located and what is its background?
A: Century Aluminum’s Norðurál subsidiary is located in Iceland. Century acquired the Norðurál primary aluminum smelter facility in 2004. Norðurál is one of the biggest primary aluminum smelters of its kind in Europe. Century markets a Natur-Al™ low-carbon aluminum product line from Norðurál. Century bills its Natur-Al product as having one of the lowest CO2 footprints in the world.
Q: What funding did the U.S. Department of Energy provide for the Green Aluminum Smelter Project?
A: The U.S. Department of Energy earmarked $500 million for the Green Aluminum Smelter Project. On January 15 the Energy Department announced a first tranche of $10 million toward its cost-share total of up to $500 million for the project.
Q: What is MISO and what recent projections affect it?
A: MISO is a 15-state grid. The Southern Renewable Energy Association projected almost 13.8 gigawatts of added solar capacity in the MISO grid over about the next three years (projection noted in September). MISO has been an early adopter of wind energy. MISO has turned its attention to solar energy in recent years.
Q: What technology does DTE offer and who are its integration partners?
A: DTE’s core technology is LP-LIBS™ (Liquid-Phase Laser-Induced Breakdown Spectroscopy), enabling in-situ elemental analysis of molten metal. DTE announced a strategic partnership with Ramboll to deliver integrated real-time chemical analysis solutions for the aluminum industry. Ramboll was founded in Denmark and operates in 35 countries. Ramboll employs more than 18,000 experts. Ramboll was established in 1945.
Q: What services did SnerpaPower agree to provide Norðurál?
A: SnerpaPower will provide Norðurál with advanced energy management and flexibility services through its proprietary software platform. SnerpaPower said its solutions enable Norðurál to optimize and automate power schedules and orders while fulfilling contractual obligations and supporting power grid stability.
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Key features at a glance
| Feature | Detail |
|---|---|
| U.S. DOE funding | The U.S. Department of Energy earmarked $500 million for the Green Aluminum Smelter Project; On January 15 the Energy Department announced a first tranche of $10 million toward its cost-share total of up to $500 million for the project. |
| Century Aluminum | Century Aluminum Company is a Chicago-based firm; Century Aluminum’s Norðurál subsidiary is located in Iceland; Norðurál is one of the biggest primary aluminum smelters of its kind in Europe; Century markets a Natur-Al™ low-carbon aluminum product line from Norðurál. |
| Iceland energy profile | Green by Iceland states the Icelandic electricity grid is entirely run on renewable energy from hydro and geothermal resources; access to 100% renewable energy attracts low-CO2 aluminum production. |
| SnerpaPower services | SnerpaPower’s platform enables facilities to automate their power schedules for maximum efficiency and provides real-time data and automated electricity forecasting for ports and data centers. |
| DTE technology and partners | DTE’s core technology is LP-LIBS™ and DTE announced a strategic partnership with Ramboll to deliver integrated real-time chemical analysis solutions for the aluminum industry. |
| Grid context | MISO is a 15-state grid; The Southern Renewable Energy Association projected almost 13.8 gigawatts of added solar capacity in the MISO grid over about the next three years (projection noted in September); RTO Insider has reported that MISO has shifted its near-term emphasis to natural gas while continuing to add renewables. |
Deeper Dive: News & Info About This Topic
Additional Resources
- CleanTechnica: A new tool for aluminum industry decarbonization (2025)
- Wikipedia: Aluminium smelting
- Fortune: Can Iceland help the U.S. clean up the aluminum industry? (2025)
- Google Search: Iceland aluminum industry US partnership
- Reuters: Alcoa warns tariff could cost 100,000 U.S. jobs (2025)
- Google Scholar: Alcoa aluminum tariff jobs 2025
- ArcticStartup: DTE and Ramboll partner
- Encyclopedia Britannica: Ramboll (search)
- Bloomberg: Iceland can manage 10% U.S. tariff, central bank chief says (2025)
- Google News: Iceland tariff aluminum 2025
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