Saving Iceland

After thirteen years of environmental, economic and technical evaluations, followed by a proposition for a parliamentary solution and a three month long public comments process, wherein 225 reviews where handed in — we are now witnessing the final steps in the making of Iceland’s Master Plan for Hydro and Geothermal Energy Resources. The plan, which in diplomatic language is supposed to “lay the foundation for a long-term agreement upon the exploitation and protection of Iceland’s natural resources,” has now been presented as a bill by the Ministers of Environment and of Industry, respectively, and is currently awaiting discussion and further bureaucratic processes in parliament.

Treated as the Master Plan’s trash can, the unique geothermal areas on the Reykjanes peninsula get a particularly harsh deal. Out of the peninsula’s nineteen energy potential areas, only three are listed for protection while seven are set for exploitation in addition to the four that have already been harnessed. Five additional areas are kept pending, more likely than not to be set for exploitation later. Existing plans for energy production outline how the peninsula is set to be turned into a single and continuous industrial zone, and the power companies seem to be simply waiting for a further green light to exploit the area. All this in order to further feed the aluminium industry.

In this overview we take a look at nine of these nineteen areas — those from the west of Gráuhnúkar — of which only one is to be protected according to the Master Plan. We look at the plans on the drawing board, their current status, the key companies involved, the already existing power plants, the threatened areas, and at last but not least: possible targets for direct action. On the map below, these areas are marked from number one to nine. Obviously the map only shows the areas at stake and the reader has to use her or his imagination to fill in power lines and the rest of the necessary infrastructure. Most of the following photos are taken by Ellert Grétarsson — click here and here for more of his photos.

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By Snorri Páll Jónsson Úlfhildarson, originally published in The Reykjavík Grapevine.

This simply means that until spring last year, the police literally had a carte blanche regarding whom to spy on and for whatever reasons they chose. Unbeknownst the public, the instructions allowed unrestricted espionage.

“Good things happen slowly,” Björn Bjarnason, Iceland’s former Minister of Justice, wrote on his blog in March of last year when his successor in office, Minister of the Interior Ögmundur Jónasson, called for a press conference to announce that the police would soon be granted proactive investigation powers.

While Ögmundur and other Left Green MPs often criticised Björn for his aggressive efforts to increase police powers during the latter’s six years in office, he is now advocating for increased police powers as part of The State’s crusade against purported organised crime, which is believed to be predominantly manifested in a number of motorcycle gangs, including the Hells Angels.

A bill that he proposed to parliament last month does not contain the infinite investigation powers that the police have openly asked for, but does nevertheless allow them to start investigating people who they believe are planning acts that would fall under the category of organised crime and are punishable by at least four years of imprisonment.

While the case is usually presented as the police’s struggle to gain greater justifiable investigative powers — in which they have supposedly not fully succeeded — the fact is that, from at least July 1999 to May 2011, the police had unrestricted authority to monitor whomever they wanted due to poorly defined regulations. Read More

The profitability of Landsvirkjun, Iceland’s national energy company, is way too low. And worst off is the Kárahnjúkar hydro power plant, Europe’s largest dam, the company’s biggest and most expensive construction. Landsvirkjun’s director Hörður Arnarson revealed this during the company’s recent autumn meeting, and blamed the low price of energy sold to large-scale energy consumers, such as Alcoa’s aluminium smelter in Reyðarfjörður, as one of the biggest factors reducing profit.

These news echo the many warnings made by the opponents of the cluster of five dams at Kárahnjúkar and nearby Eyjabakkar, who repeatedly stated that the project’s alleged profitability was nothing but an illusion, but were systematically silenced by Iceland’s authorities.

Now, as these facts finally become established in the media—this time straight from the horse’s mouth—similarly bad news has arrived regarding another big Icelandic energy company. Reykjavík Energy has failed to make a profit from their 2007 and 2008 investments, effectively making them lose money. At the same time, new research shows that the environmental impacts of the Kárahnjúkar dams are exactly as vast and serious as environmentalists and scientists feared.

And yet, more dams, geothermal power-plants and aluminium smelters are on the drawing table—presented as the only viable way out of the current economic crisis. Read More

Words by Paul Fontaine. Photo by Alísa Kalyanova. Originally published in The Reykjavík Grapevine.

One of Iceland’s proudest assets is its energy grid. Geothermal energy, by 2010 figures, accounts for just over 26% of the country’s electricity, as well as 86% of its heating and hot water. Iceland’s geothermal energy technology has been shared with countries around the world, and has attracted the interests of foreign investors.

However, as comparatively cleaner for the environment geothermal power is not without its problems. One of these is the main elephant in the room: geothermal energy is not a renewable energy source. Boreholes that tap into the massive steam vents below the surface do not last forever. When Ross Beaty, CEO of Magma Energy (now a part of Alterra Power Corp.) made the specious claim that geothermal energy lasts for centuries, scientists such as Stefán Arnórsson and Sigmundur Einarsson were quick to point out that geothermal power in the Reykjanes area — where Magma sought to drill — only had enough power to last about 60 years at best. Although this point was seldom, if ever, brought up in any previous discussion about geothermal power in Iceland, more recent events have shown that geothermal energy is not just non-renewable; it can even pollute. Read More

A special report for Saving Iceland by Dónal O’Driscoll

Preface

Glencore are the majority shareholder of Century, the owner of one operational and one half-built smelter in Iceland, it’s key operations for aluminium smelting. But who are Glencore and what are the implications for Iceland? This comprehensive article profiles the world’s biggest commodity broker, who’s only comparable predecessor was Enron. The profile covers the reach and grip of Glencore’s domination of metal, grain, coal and bio-oils markets, allowing it to set prices which profit very few and are detrimental to many. It shows the tight web of connections between the major mining companies and Glencore through shared board history and shared ownership of assets, cataloguing key shareholders (and board members) who’s stakes make them larger shareholders than institutional investors in ownership of Glencore. These connections include Rusal’s co chair Nathaniel Rothschild, a financier with a $40m investment in Glencore, and a personal friend of Peter Mandelson (former EU trade commissioner and British politician) and George Osborne (UK Chancellor).

The article details the human rights and environmental abuses of Glencore at it’s many operations, including the 2009 killing of Mayan indigenous leader Adolfo Ich Chamán who spoke out about Century’s activities in Guatemala under CEO-ship of Peter Jones (still a Century board member). It claims that Glencore is higher than most in the running for most abusive and environmentally detrimental mining company, going where lesser devils fear to tread – trading with Congo, Central Asia and embargoed countries such as Saddam Hussein’s Iraq and apartheid South Africa. Glencore founder Marc Rich was involved in trading embargoed Iranian oil, and fled the United States in 1983 accused of insider dealing and tax dodging over Iranian deals, becoming one of the 10 fugitives most wanted by the FBI, until he was pardoned by Bill Clinton. Glencore is still run by two of his main men. Read More

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By Snorri Páll Jónsson Úlfhildarson, originally published in The Reykjavík Grapevine.

Those who are yet to give up on Icelandic media cannot have avoided noticing one Kristján Már Unnarsson, a news director and journalist at TV station Stöð 2. Kristján, who in 2007 received the Icelandic Press Awards for his coverage of “everyday countryside life”, is a peculiar fan of manful and mighty constructions and loves to tell good news to and about all the “good heavy industry guys” that Iceland has to offer.

To be more precise, Kristján has, for at least a decade (and I say “at least” just because my memory and research doesn’t take me further back), gone on a rampage each and every time he gets the chance to tell his audience about the newest of news in Iceland’s heavy industry and energy affairs. He talks about gold-mills when referring to dams built to power aluminium production; and when preparing an evening news item on, say, plans regarding energy and aluminium production, he usually doesn’t see a reason for talking to more than one person – a person who, almost without exception, is in favour of whatever project is being discussed.

After witnessing Kristján’s latest contribution to the ongoing development of heavy industry and large-scale energy production, i.e. his coverage of Alcoa’s recently announced decision not to continue with its plan of building a new aluminium smelter in Húsavík, wherein he managed to blame just anything but Alcoa itself for the company’s decisions, I couldn’t resist asking (and, really, not for the first time): What can really explain this way too obvious one-sidedness, manifest not only in this one journalist’s work but seemingly the majority of news coverage concerning heavy industry? Read More

Árni Daníel Júlíusson, Originally published in the Reykjavík Grapevine.

It is funny how things can turn around. For decades, Iceland languished in neoliberal hell, with signs of opposition few and far between. Meanwhile the opposition to the neoliberal order of things grew all over the world—with massive protests in Seattle, Genoa and elsewhere—and the beginnings of a world-wide anti-globalisation movement represented by the World Social Forum, first held in Porto Alegre, Brazil, in 2001. Almost nobody in Iceland did or said anything to support these powerful movements against the neoliberal order, with the exception of the brave Saving Iceland organisation. Read More

The equivalent of three Kárahnjúkar dams will be built in Iceland in the near future if the parliament will pass a proposition for a parliamentary resolution on Iceland’s Energy Master Plan, which the Ministers of Environment and of Industry presented three weeks ago. Despite this, Iceland’s energy companies and parliament members in favour of heavy industry have already started complaining – arguing that way too big proportion of Iceland’s nature will be declared protected, will the proposition pass. Among the power plants allowed for in the proposition are three dams in lower Þjórsá, which for years have been a topic of heavy debate and in fact completely split the local community and are more than likely to become the bone of contention between the two governmental parties as the Left Greens (VG) have, along with other environmentalists, voiced their opposition to the damming of Þjórsá.

The Energy Master Plan is a framework programme, meant to result in a long term agreement upon the exploitation and protection of Iceland’s glacial rivers and geothermal areas. Its making, which since 1999 has been in the hands of special steering committiees, established by the two above-mentioned ministries, reached a critical status in July this year when its second phase was finished and presented to the ministers who in mid August presented their proposition for a parliamentary resolution. Before it will be discussed in parliament the proposition will be open to comments and criticism from the public, as well as interested parties, energy and aluminium companies on the one hand, environmentalists on the other. Read More

By Snorri Páll Jónsson Úlfhildarson

On Friday September 2, two men appeared in court in downtown Reykjavík. It wasn’t their first time—and it probably won’t be their last. If found guilty, the defendants, Haukur Hilmarsson and Jason Thomas Slade, face up to six years in prison, due to a peculiar action on their behalves that marks a turning point in Icelandic asylum-seeker affairs.

On the morning of July 3, 2008, Haukur and Jason darted onto the runway of Leifur Eiríksson International Airport in Keflavík, hoping to prevent a flight from departing, and deporting. Inside the plane, which was headed to Italy, sat one Paul Ramses, a Kenyan refugee. The two activists ran alongside the plane, and placed themselves in front of it—halting its takeoff.

It would be wrong to assume that anything has changed since 2008. Iceland may have seen an infamous economic collapse followed by a popular uprising and a new government, but for the two activists it must feel like time is standing still. Since their arrest at the airport, they have been stuck in a seemingly endless legal limbo, first charged for housebreaking and reckless endangerment and later thrown between all levels of the juridical system. Last Friday, the case’s principal proceedings took place for the second time in Reykjavík’s District Court, after the courts original sentences were ruled null and void by Iceland’s Supreme Court. Read More

The following chapter is from ‘Bankastræti Núll’, the latest book by poet and author Einar Már Guðmundsson, translated and originally published in The Reykjavík Grapevine, parallel to an introduction to Einar by Alda Kravec. The introduction says that the book “opens with the narrator’s lament: the current political situation has stifled his ability to write poems to his lover. Although he foresees a future where “reality wakes up” and poets can once again sing the praises of love and nature, the resounding sound of social injustice presently overwhelms him and beckons him to first engage in the struggle against the free reign of the stock exchange, privatisation and greed.”

It is written somewhere that all cats are grey in the dark, but here in Iceland, official reports are all black, no matter how bright it is outside. Alþingi’s Investigative Commission’s Report is black. The Central Bank’s Report on the status of household debt is black. And the government and International Monetary Fund’s Memorandum of Economic and Financial Policies is also black, dark as a coal mine, and sure enough, it was drafted in April, the cruellest month. It is a reminder of the misery that the IMF has presided over in countries all over the world, and directly refutes the notion that the IMF plans to apply different methods than those it has adhered to until now.

In Greece, the public has risen up against the Fund’s plans, but here the labour movement and employers get into bed with it and are almost more devout than the Pope in getting investors to come here with their baggage of offshore profits and dummy corporations. In one district, where neo-liberals have sold everything and there is nothing left to mortgage except the harbour, efforts are being made to set a precedent by selling natural resources through a shelf company just so politicians can save face after having handed over the entire district to their associates and relatives on a silver platter. Read More