Saving Iceland

The deals on energy prices between Landsvirkjun (Iceland´s National Energy company) and the aluminum companies working in Iceland have been kept secret from the public since they got signed. The only notion the public had was a pamphlet called ”Lowest Energy Prices”, published in 1995 to lure heavy industry to the country, which like the name states, was filled with promises about cheap, greenwashed, energy. Looking at surrounding countries many estimated that the prices were close to a half of what households in Iceland pay. But after Alain Belda, Alcoa´s president, had the now famous slip of his tounge in Brazil that revealed that they were paying $15 for the MWh (megawatt hour), and RUV´s (Icelandic National Broadcasting Association) exposure of Century Aluminum´s prices earlier in the year, Landsvirkjun decided to open their books in, what they call ”an attempt to create peace around the company´s actions”. In reality they´re just blowing smoke in people faces with well chosen figures in a desperate attempt to save the companies already ruined credibility.

The Price Revealed
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Hello and welcome back to our website.

We know that over the past few months our website has stood on shaky ground. Slowdowns, random temporary down times and finally, the site being down altogether.

Well, we’ve given the site a heaving of loving care and now we’re very happy to put it back online. For good.

As you can see, it’s had a bit of a facelift. But more than that, we now have a few new features too. Try using the search box, for example.

With all techy projects, there are bound to be a few bugs here and there. Let us know about them!

Be sure to keep checking up our site, or subscribe to our rss feeds, because the struggle against the heavy industrialisation of Iceland and the destruction of its wilderness, alas, continues.

Throughout the years, Saving Iceland has been pointing out that the common household on Iceland would end up paying the bill for the aluminium factories. The secrecy that shrouds the contracts between Landsvirkjun (the National Energy Company) and the aluminium companies shouts corruption and even more voices have been questioning the deals publicly and pressing on for those numbers to be revealed.

On the 9th of March, RUV (Icelandic National Broadcast Association) revealed a strictly confidential report the news channel has in their hands. The report, which was made for Norðurál (Century Aluminum) and foreign banks by the consulation office Hatch, shows the different costs of the industry, including the energy price.

That price of the KWh is bound to the price of each ton of aluminium, a 0.00000001% of the selling price. That means that while the price of aluminum was 1400$ a ton, Norðurál was paying 1,4 cents per KWh, making it the cheapest in Europe and leaving Landsvirkjun’s profit from the energy they sell to them dependant on the unstable aluminum price.
This price also means that Norðurál is paying a fourth of what aluminum companies in Europe are paying for their energy and on top of that, only a meager fifth of what the local population has to pay for their private energy usage.

Since the news came out, Landsvirkjun has announced they will be revealing their prices to the aluminium industry during the middle of next month.

Previously, Alain Belda, presdient of Alcoa, had revealed their energy bill in Iceland in a speech he held in Brazil. From figures he cited there people could calculate that it was the lowest energy price for an aluminium company anywhere in the world.

Keep checking this site for updates on these news.

From Amnesty International, February 2010

Plans to mine bauxite in the Niyamgiri Hills in the Indian state of Orissa threaten the very existence of the Dongria Kondh – an indigenous community that has lived on and around the hills for centuries.

The Dongria Kondh depend entirely on the hills for their food, water, livelihoods and cultural identity. They consider the Niyamgiri Hills as sacred.

The proposed mine could have grave repercussions for their human rights to water, food, health, work and other rights as an Indigenous community in respect of their traditional lands. International law requires that governments seek their free, prior informed consent before beginning such projects.

In Lanjigarh, at the foot of the Niyamgiri Hills, air and water pollution from an alumina refinery run by Vedanta Aluminium are threatening the health and well-being of local communities.

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Of course the governmental opposition parties and their usual gang of industrial lobbyists are furious over the ruling, and critisice it heavily, displaying reactions the environmental minister described as being similar to allergic reactions. Amongst other things they accuse her of hindering those who are trying to build up work in the energy and industry sectors and blocking the creation of new jobs in a country they claim is ravaged by unemployment (approximately 8,6% at last count).

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In September 2009, the Ministry of Environment overruled the Planning Agency’s verdic which stated that no joint Environmental Impact Assessment (EIA) is needed for the S-West Power Grid and the industry that it’s going to be providing for. The case was sent back to the Planning Agency for a more substansial treatment.

This ruling caused uproar amongst pro-indistrialists, who went so far as to claiming that Svandís Svavarsdóttir, the minister of environment, was guilty of both treason and terrorism against the people og Reykjanes, especially all the unemployed. All the medias jumped on the wagon with the industrialists, citing union bosses worrying about the unemployment rate, economists painting a bleak picture of a bankrupt future and interviews with unemplyed people worrying about their mortages. And all of it was Svandís’s fault.

Yesterday the Ministry of Environment confirmed the Planning Agency’s second verdict. The verdict’s the same, no joint EIA is needed for the projects on the SW peninsular. This means that all the balls are in the industrialists court now and the media is backing them up with quotes and interviews with indistrial workers and union bosses dreaming of a better future now that the way has been paved for projects like the enlargement of the Reykjanes Power Plant, Bitra Power Plant, Hverahlíða Power Plant, various data storages and an aluminium smelter and a silicon factory in Helguvík.

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The professional environmental saboteur, Friðrik Sophusson, former president of Landsvirkjun (Icelandic National Energy Company) and before that the financial minister under the Independent Party’s reign of terror, has now become head of the board of directors of Íslandsbanki, one of the government owned banks since the collapse of the bank system in 2008. The bank is now mostly in the hands of it’s creditors and the board of directors, which has been expanded to 7 members, are now mostly foreign experts in the financial sector.

Íslandsbanki also owns majority in the geothermal energy company Geysir Green Energy and controls all of it’s board members. Geysir Green Energy, in return, owns a majority stake in HS Orka (Southern Peninsula Geothermal Energy Company), or 57,4% stock after acquiring 34% stock from the municipality of Reykjanes Town and selling 8,6% to the Canadian Magma Energy Corp.

So Sophussons years in meddling with Icelands resources and energy companies are obviously far from over, and now he’s got his dirty fingers down in the money jar as well, where he can apply the needed pressure on these companies, owned by his bank, to further his dream of a totally harnessed Iceland.

Al Jazeera has obtained the first footage of a massive bauxite mining project in central Vietnam which has created one of the biggest civil protest movements the country has ever seen. Vietnamese media have been banned from reporting on the proposed mine, which critics say will create major environmental damage, for little economic benefit.

Vietnam holds the third largest bauxite reserves worldwide and is increasingly subject to China’s growing desire for natural resources through its controlling diplomatic relationship with Vietnam. The $460 million project, which has already begun, is being carried out by Chinalco, a chinese aluminium company who own 10% shares in Rio Tinto, and Vinacomin, the Vietnamese partner.

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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.

‘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.’

Early in the morning of Wednesday the 16th of december the Icelandic embassy in Copenhagen was attacked. A security camera was disabled with spray paint, the Icelandic coat of arms was defaced in the same way, green paint was splashed on the front of the house and on the front door, in large letters, “Green energy – pure lies” and “Nature Killers” was sprayed amongst other thing’s.

The Icelandic government boasts of it’s prowess in the production of “green” energy but there is no such thing as green energy, especially if it is then used for heavy industry. “Green” energy production is just as destructive to our environment as other energy production, the effects are just better hidden. The earth’s ecosystems are suffering because of mankinds actions, this must end.

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