Annual revenue and value for the community



Norðurál’s aluminum pro- duction in 2022 was 306,267 tons, a decrease of around 9,000 tons from the previous year. This de- crease is mainly a result of the energy cut in the first quarter of the year, when electricity supplied to ma- jor consumers was reduced due to a national shortage. Around 63,000 tons of Norðurál’s output is in the form of value-added prod- uct or alloy. Profits in 2022 amounted to 29.7 ISK.


As in 2021, market conditions were favorable in 2022. Reference prices for aluminum had de- creased in 2020, dropping as low as 1,460 USD per ton in April; prices then rose as the year progressed, for an annual average of 1,700 USD. This trend has continued, with prices per ton of aluminum averaging 2,480 USD in 2021 and 2,820 USD in 2022.


Norðurál’s exports amounted to 141 billion ISK in 2022. Of this revenue, 64.5 billion ISK was paid to Icelandic parties in the form of public levies, salaries, and procurement from domestic suppliers and service providers. Salaries and payroll expenses amounted to 7.9 billion ISK, with an average annual salary of 9.8 million ISK.


Norðurál contributes to the community in a variety of ways. The company’s tax footprint in 2022 was 5.0 billion ISK. Through revenue in foreign currency, purchase of domestic goods and services, payment of taxes and public fees, creation of well-paid jobs, and wide-ranging sup- port of the west Iceland community, Norðurál has a positive impact on the national economy.

In 1997, Norðurál signed an investment agreement with the Icelandic government effective until October 31, 2018. In 2016, Norðurál activated the contractual provision on changes to tax- ation so that as of 2017, the company has forfeited previous privileges and has been subject to national tax regulations.


The investment agreement is available on the Ministry of Industries and Innovation’s website.


Norðurál’s tax footprint


In 2022, the economic value of the company’s operations — including sales revenue, capital gains, and profits from sales of assets — amounted to over 167 billion ISK. Of this, 64.5 billion ISK was returned to the domestic economy through salaries, payroll expenditures, purchase of electricity, procurement of goods and services, and taxes and other public fees.


Norðurál’s tax footprint includes all taxes and fees paid or collected by the company in Iceland, as well as reciprocal contributions to employee pension funds. Taxes collected as a result of the company’s operations are not considered costs but do have associated administrative costs. The economic contribution (value) of the company’s operations in 2022 amounted to 141 billion ISK and consisted of sales revenue, capital gains, and profits from sales of assets.

EU Emissions Trading System


Greenhouse gas emissions directly linked to Norðurál’s production process fall under the scope of the EU Emissions Trading System (EU ETS), which aims to reduce industrial emis- sions from major European companies through the purchase and sale of emissions allow- ances. The EU ETS therefore functions as an economic incentive for businesses to reduce their emissions. In 2022, Norðurál paid 529 million ISK for emissions allowances.


Green financing for new casthouse


Construction of Norðurál’s billet casthouse went well in 2022 and is scheduled to be complet- ed in the first half of next year. The new casthouse will enable domestic production of more valuable aluminum products with a lower carbon footprint. Billet production in Iceland will reduce energy consumption by around 40%.


The casthouse represents an investment of around 120 million USD, or almost 17 billion ISK. Construction was financed by Arion Bank through its new Green Financing Framework, which is based on International Capital Market Association (ICMA) guidelines as well as EU classifi- cation systems and the UN Global Goals.


Business integrity


Norðurál’s parent company, Century Aluminum, and its subsidiaries are committed to ethical conduct and lawful operations worldwide. American and international laws and regulations prohibit corrupt practices and transactions, such as misleading or fraudulent accounting and reporting.


Our detailed policy documents, which define our standards and protocols, ensure the com- pany fulfils all legal and social requirements for the ethical conduct of an honest and repu- table organization.