The project has been fraught with obstacles since its inception. Most notably, Minister for the Environment Svandís Svavarsdóttir has been an outspoken opponent of the plan. A damning assessment from the Icelandic National Planning Agency concluded that the proposed smelter would also have a “significant negative impact” on the environment not just of the surrounding area, but on Iceland as a whole. A few days ago Landsvirkjun, Iceland’s National Energy company, announced that they would neither fight for or against the protection of the area and that they will not perform “test” drills in Gjástykki (a globally unique geothermal area in the north of Iceland with ravines, faults, lava fields and volcanic craters) until the government had completed the process of protecting the area, even if they had got a go a head to do so by the National Energy Authority. Moreover, it came to light that a company called Carbon Recycling – which converts CO2 into methanol – has been in talks with National Power Company Landsvirkjun to operate in the same area – which, if it were to happen, would mean there could be no smelter anyway, as the energy requirements for both would be too great for the region. The source that Viðskiptablaðið spoke to said that the process of getting the ball rolling for the smelter has taken too long, and that the patience of the investors involved has run out. The final straw, the source said, was the aforementioned methanol plant. Should the story prove true, this could mark a turning point in Icelandic history in terms of the country’s relationship with heavy industry.
That is great news – lets hope we hear of alcoa withdrawing officially soon!