Dec 29 2009

Greenland’s Energy and Mineral Extraction Master-plan Revealed

As Greenland awakes from over 700 years of colonisation and heavy subsidisation by Denmark, it’s home rule government are promoting the development of huge hydro-power for aluminium smelters, and all the country’s other mineral and energy resources as a desperate measure to sustain their economy. The language of fear and imminent economic collapse used in the Prime Minister’s plan (below) is strongly reminiscent of the pro heavy-industry strategy in Iceland in the run up to the Kárahnjúkar dam, and right up to today.

The article attempts to justify aluminium production and other energy intensive extractive industries, claiming that using Greenland’s ‘green’ hydro energy will prevent ‘dirty’ emissions for the inevitable production of aluminium elsewhere. This is certainly the take of Alcoa who are ever keen to avoid carbon taxes, and claim that:
‘We have before us a wonderful opportunity to deliver mutual benefit to the people of Greenland and to Alcoa as we continue to work toward our common objective of building a world-class, sustainable aluminum smelter, powered by renewable hydroelectric energy in Greenland.’
The experience of Icelandic mega-hydro, as well as numerous studies have revealed this argument to be nothing but ‘greenwash’- a selling point for Alcoa, while carbon emissions, fluoride pollution, indigenous destruction, and weapons manufacture associated with aluminium production continue to rise unabated.
Plans for an aluminium smelter in Greenland have been reported since 2007, originally proposed by Norsk Hydro. Alcoa quickly stepped in and a Memorandum of Understanding was signed in May 2007 for a smelter in the town of Nuuk, Sisimiut or Maniitsoq. The proposed smelter will begin at 350,000 tonnes (slightly larger than the enormous Fjardaal in Iceland) and will require 650 MW of energy from 2 dams, connected to the smelter by 240 km of powerlines. Public consultations are currently in progress with the next round in January 2010, with plans to have the smelter online by 2016.
In 2008 a contact in Greenland reported that most people there are in favour of the project, and with the urgent need for financial independence as they break away from Danish rule, this may well be the case. Greenland is geographically and politically isolated and lacks even the level of critique and information which Icelanders had in the run up to Karahnjukar, let alone the support of large NGO’s for the tiny environmental group who are trying to single-handedly address the many issues with the smelters and other developments there.
The article:
Our Common But Differentiated Responsibilities
Kuupik Kleist, Prime Minister of Greenland 28/10/2009 09:25
Greenland Today

” aluminium made in Greenland will benefit our global climate if replacing aluminium produced elsewhere in the world where renewable energy sources are not available for the production. This will raise Greenland’s emissions, but on a global scale the emissions will have gone down.”

Greenland is moving along a development path calling for new industries to be introduced to increase our economic independence. Like other countries at the bridge of industrial development, Greenland will travel to Copenhagen to draft a new agreement that will reduce emissions while at the same time taking into account the principle of common but differentiated responsibilities of countries and OCT’s.

For generations we have lived off nature. My ancestors have survived by constantly adapting to changes in nature. Today we still live off nature. Fishery is the single most important industry in Greenland, making up 80 per cent of our exports. As stocks are likely to undergo changes as a result of the changing climate, a restructuring of the fisheries sector is vital in the coming year. Also the development of new sectors, mainly hydrocarbons and energy intensive industries, are expected within the next decade. Development of new sectors is vital if Greenland is to prosper under Self-Government.
On June 21 2009 Greenland took a historic step towards independence as the new Self-Government status was introduced. The new Act on Greenland Self-Government consolidates the status of the Greenlandic people as a people pursuant to international law with the right to self determination.

A country of only 56.000 people, living in small towns and settlements along a coastline that compares to the distance from Casablanca to Copenhagen, brings challenges. And adding to these challenges an Arctic climate with extreme temperatures and dark winters makes the challenges of binding the country together even greater.
Greenland is a modern country with communication technology connecting our communities and connecting our country to the world around us. But as inland production is limited and distances between towns and settlements are vast we still rely on sea and air transportation for a wide range of commodities. As the basic need for heating and transportation is comparatively large, Greenland has a high basic emission level per capita even if only little industrial production is taking place.

To cut emissions of greenhouse gasses from fossil fuels we have invested 1 per cent of our GDP annually in the development of sustainable energy since the 1990’s. The introduction of hydropower plants in Greenland is a success as 43 per cent of electricity supply today is covered by energy from three hydropower plants, and in 2010 the share of sustainable energy will climb to more than 60 per cent as a new hydropower plant is opened. Furthermore, my government invests in the research and development of small scale energy systems suitable for use in the Arctic.

New industries
Greenland is moving along a development path calling for new industries to be introduced in order to develop our society and in order to increase our economic independence.
The development of mineral and oil activities are some of the few realistic possibilities towards a self-sustainable economy in Greenland.

Within the last 3-4 years four new licences for mine production have been issued. Several other mineral projects are reaching the final stages before mining licences can be issued. This is the case for projects comprising zirconium, diamond, iron, lead and zinc, and the group of platinum metals. It is a realistic expectation that approximately 10 mines will be in operation within the next 5 to 10 years.

In the last couple of years Greenland has experienced an unprecedented international interest in the oil and gas potential in its underground and the area covered by exploration and exploitation licences have increase to approx. 130,000 sq km. The next exploration wells are planned to commence offshore West Greenland in 2011.
It is a clear political condition that all activities are carried out in accordance with best international standards in relation to safety, environment and climate. But even if the best environmental standards are being used these activities will increase Greenland’s emissions of greenhouse gasses from a very low 1990 starting point. The challenge for Greenland as for many other countries at the bridge of industrial development is to balance the need for new industries, the need to develop our society with a responsible policy on mitigation and adaptation to climate changes.
Another resource is our vast potentials for hydropower energy. The large inland lakes of melt water are energy resources that I hope will be used for the benefit of both Greenland and the global climate as we plan to introduce energy intensive industries within the next decade. As an example, any aluminium made in Greenland will benefit our global climate if replacing aluminium produced elsewhere in the world where renewable energy sources are not available for the production. This will raise Greenland’s emissions, but on a global scale the emissions will have gone down.

Common but differentiated responsibilities
We all inhabit the same globe, and we all must make an effort to curb climate change now.
Reducing global emissions of greenhouse gasses and leaving a green planet for future generations is one of the biggest challenges faced by world leaders today. But while facing the challenges of global warming we must also see that countries at the bridge of industrial development find room to meet the needs and aspirations of their populations bringing them at level with people in the industrialised countries.
In December 2009 the world meets in Copenhagen to draft a new agreement that hopefully will lead to a reduction in global emissions of greenhouse gasses, while at the same time taking into account the principle of common but differentiated responsibilities.

Kuupik Kleist is the Prime Minister of Greenland

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