join to form a single combined headrace tunnel. The single headrace tunnel later splits into two long, diameter steel-lined penstocks (tunnels) and the water makes a rapid descent down a final vertical penstock into the power station. The underground Fljótsdalur Power Station contains six vertical-axis Francis turbine generators rated at 115 MW each. The power station has a combined capacity of 690 MW and discharge of (averages ) into the river Jökulsá í Fljótsdal via tailrace tunnels and canals. The power production of 4,600 GWh/year corresponds to a capacity factor of 76%, which is relatively high for a hydroelectric facility. Power produced is then transmitted to Alcoa's Fjarðaál aluminium smelter to the east in Reyðarfjörður. Fjarðaál aluminium smelter The Fjarðaál aluminium smelter was completed June 2007 and reached full operation in April 2008. Construction began in 2004 and the facility contains a smelter, cast house, rod production and deep-water port. The smelter employs 450 people and produces 940 tons of aluminium a day, with capacity of 346,000 metric tons of aluminium per year. Fjarðaál means "Fjords Aluminium" in Icelandic. History Using the rivers Jökulsá á Dal and Jökulsá í Fljótsdal along with other resources in eastern Iceland has been on the drawing board since the 1970s. From 1975 to 2002, several international companies had planned or attempted to build a metal plant at Reyðarfjörður that would be powered by a hydroelectricity project similar to the Kárahnjúkar. All failed because of opposition to the project until Alcoa along with the Government of Iceland and Landsvirkjun, Iceland's national power company committed to the massive project in 2002. Construction The project is funded by Landsvirkjun, which operates the dams and Fljótsdalur Power Station. The Italian company Impregilo is the largest contractor working on the dams. The total cost of the hydropower project is 1.3 billion USD. The penstock was built in place by the German company DSD-NOELL (Würzburg) whereas ATB Riva Calzoni of Italy provided intake structures, wheels gates and sliding gates. In total, more than 4,000 tons of steel were used for the steel liner. Preparatory work on the project began in August 2002 and construction on the Kárahnjúkar Dam and headrace tunnels for the Hálslón Reservoir began in April 2003. In September of the same year, construction began on the underground power station. Construction on both the Desjará Dam and the Sauðárdalur Dam began in April 2004. In June 2006, construction