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 push aluminum industry toward lower emissions
The push to cut carbon in aluminum production is speeding up as Iceland’s renewable power and new industrial software tools are linked with changes in the U.S. industry. The biggest developments include Icelandic firms offering software services to smelters, a strategic financing move for a proposed U.S. primary smelter, and new recycling and in-line analysis technologies aimed at improving energy use and material quality.
Top-line developments
The vehicle electrification movement is driving attention to decarbonization across industries that support EV manufacturers, including the aluminum industry. The U.S. Department of Energy has earmarked up to $500 million for a Green Aluminum Smelter Project led by a U.S. company, with an initial $10 million tranche to start planning and community engagement under Phase I. If built, the Green Aluminum Smelter would be the first new primary smelter built in the U.S. in 45 years, and the DOE stated the Green Aluminum Smelter would avoid an estimated 75% of emissions from a traditional smelter due to an energy-efficient design.
Icelandic renewables and software
Iceland’s electricity grid is entirely run on renewable energy from hydro and geothermal resources, and this 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. Access to 100% renewable energy is a key part of decarbonization for industrial facilities. 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.
Norðurál entered into an energy management agreement with the Icelandic firm SnerpaPower. SnerpaPower is an Icelandic company that has developed a SaaS (Software-as-a-Service) industrial decarbonization platform. SnerpaPower’s platform enables facilities to automate their power schedules for maximum efficiency. 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.
Software and data-center links
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. SnerpaPower posted a case study in January that credited its software with helping atNorth.
SnerpaPower joined the Net Zero Innovation Hub for Data Centers as a Project HubPartner in May. The Net Zero Innovation Hub for Data Centers includes members such as Google, Microsoft, Danfoss, Data4, Schneider Electric, and Vertiv. SnerpaPower noted that upcoming large-scale shore power projects and increased ship connectivity will significantly raise the harbour’s electricity demand, and that rising harbour electricity demand poses challenges for power distribution and infrastructure operations, making predictability, planning, and efficiency in electricity procurement critical. SnerpaPower’s SaaS provides Faxaflóahafnir with real-time data and automated electricity forecasting intended to cut costs, simplify operations, improve energy efficiency, and reduce local carbon emissions from ships.
U.S. industry context and grid dynamics
The aluminum industry is beginning to adopt software services that can forecast demand with high accuracy to improve energy efficiency and support grid stability and resiliency. The U.S. aluminum industry is characterized by older manufacturing facilities, which disadvantages it relative to more up-to-date overseas operations for producing low-carbon aluminum. Century Aluminum Company is a Chicago-based firm. Century Aluminum says some of its U.S. operations have benefited from the renewable energy transition.
Century Aluminum has two facilities in Kentucky that draw 100% of their electricity from the MISO (Mid-Continent Independent System Operator) grid. 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 (as described in the source), the surge in renewable energy has slowed. A 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.
Recycling, real-time analysis and partnerships
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. DTE’s core technology is LP-LIBS™ (Liquid-Phase Laser-Induced Breakdown Spectroscopy), enabling in-situ elemental analysis of molten metal. LP-LIBS™ provides reference-grade elemental analysis directly from 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. Ramboll supports both standalone and multidisciplinary projects. The DTE–Ramboll collaboration aims to embed DTE’s analyzers directly into manufacturing environments to replace traditional sampling methods and aims to streamline production workflows, enhance process control, improve scrap utilization, and increase energy efficiency in aluminum production.
DTE was founded in 2013. DTE delivers real-time chemical analysis of molten metal to improve safety, cost-efficiency, and energy intensity for producers. Novelis participated in DTE’s $16 million Series A2 financing round in 2023. Manual sampling of molten metals (the common alternative) is wasteful and hazardous. Automation is expected to steadily replace manual sampling processes in aluminum production.
Labor and industrial relations in Iceland
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.
FAQ
Q: What is driving attention to decarbonization across industries that support EV manufacturers?
A: The vehicle electrification movement is driving attention to decarbonization across industries that support EV manufacturers, including the aluminum industry.
Q: What software trend is the aluminum industry beginning to adopt?
A: The aluminum industry is beginning to adopt software services that can forecast demand with high accuracy to improve energy efficiency and support grid stability and resiliency.
Q: How is the U.S. aluminum industry characterized?
A: The U.S. aluminum industry is characterized by older manufacturing facilities, which disadvantages it relative to more up-to-date overseas operations for producing low-carbon aluminum.
Q: What company is Chicago-based?
A: Century Aluminum Company is a Chicago-based firm.
Q: Which Century Aluminum facilities draw electricity from MISO?
A: Century Aluminum has two facilities in Kentucky that draw 100% of their electricity from the MISO (Mid-Continent Independent System Operator) grid.
Q: What is MISO?
A: MISO is a 15-state grid.
Q: What has MISO adopted and shifted toward in recent years?
A: MISO has been an early adopter of wind energy. MISO has turned its attention to solar energy in recent years. RTO Insider has reported that MISO has shifted its near-term emphasis to natural gas while continuing to add renewables.
Q: What projection did the Southern Renewable Energy Association make about the MISO grid?
A: 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).
Q: What is the status of Iceland’s electricity grid?
A: The Icelandic electricity grid is entirely run on renewable energy from hydro and geothermal resources.
Q: Where is Century Aluminum’s Norðurál subsidiary located?
A: Century Aluminum’s Norðurál subsidiary is located in Iceland.
Q: When did Century acquire Norðurál?
A: Century acquired the Norðurál primary aluminum smelter facility in 2004.
Q: What product line does Century market from Norðurál?
A: 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 agreement did Norðurál enter into?
A: Norðurál entered into an energy management agreement with the Icelandic firm SnerpaPower.
Q: What is SnerpaPower?
A: SnerpaPower is an Icelandic company that has developed a SaaS (Software-as-a-Service) industrial decarbonization platform.
Q: What technology does DTE use?
A: DTE’s core technology is LP-LIBS™ (Liquid-Phase Laser-Induced Breakdown Spectroscopy), enabling in-situ elemental analysis of molten metal.
Q: What did the DOE do regarding a Green Aluminum Smelter Project?
A: Century Aluminum was tapped for up to $500 million in financial assistance from the U.S. Department of Energy for a 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.
Key features at a glance
| Feature | Details |
|---|---|
| Renewable energy hub | Icelandic electricity grid is entirely run on renewable energy from hydro and geothermal resources |
| Industrial software | SnerpaPower: a SaaS industrial decarbonization platform that enables facilities to automate their power schedules for maximum efficiency |
| Real-time analysis | DTE LP-LIBS™: Liquid-Phase Laser-Induced Breakdown Spectroscopy for in-situ elemental analysis of molten metal |
| U.S. investment | Green Aluminum Smelter Project: up to $500 million from the U.S. Department of Energy with an initial $10 million tranche to launch Phase I |
| Grid example | MISO is a 15-state grid; Century Aluminum has two facilities in Kentucky that draw 100% of their electricity from the MISO grid |
| Recycling partnership | DTE and Novelis partnership to help Novelis increase its recycled content target to 75% |
| Industry challenge | The U.S. aluminum industry is characterized by older manufacturing facilities, creating disadvantages for low-carbon production compared with newer overseas operations |
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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