Saving Iceland

Rio Tinto Alcan (ISAL) has landed all the energy-related deals necessary for the company to start expanding it’s aluminum smelter in Straumsvík. In the middle of June, Landsvirkjun (National Power Company) and Alcan renewed their current deal on energy purchase between the companies. The renewal included an extension on purchase right up until the year 2036, along with an added purchase of 75MW of power, energy Alcan needed to secure to be able to act on their plans on expanding the smelters productional capacity by 40.000 tons a year. This expansion will not exceed the companies current boundaries, thus manouvering around any results from local referandums against the smelters expansion. As mentioned earlier, the expansion also requires these 75MW of power on top of all the energy Alcan is already receiving at bargain prices. But the deal does have some reservations, most prominently a demand that the uncertainity about the taxation of heavy industry in the country be settled before the 31^st of August. This is a clear and blatant example of how the power-sector and aluminum lobbyists toy with the countrys government, that has never dared to resist or stand up to this kind of pressure, or blackmails as it is, of financial muscle, so the same should be expected in this case.

A week after the signing of the deal with Alcan, Landsvirkjun invited tenders on the construction of Búðarháls-powerplant and related constructions. The tenders close at the end of August, and construction is expected to be finished by the fall of 2013. Read More

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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By Jaap Krater, Miriam Rose and Mark Anslow, The Ecologist, October 2007.

The gates of a geothermal power station are not where you would expect to find environmental activists. But the morning of 26th July 2007 saw the access road to Hellisheidi power station in Hengill, South-West Iceland, blockaded by a group of protestors from the campaign group ‘Saving Iceland’. After a brief demonstration, nine activists were arrested and several now face legal action.

Geothermal power in Iceland is big business. Just five plants generate 3 TWh a year – more than the annual output from all the UK’s wind turbines combined (Orkustofnun 2005; BERR 2006). Geothermal power also provides at least 85 per cent of Iceland’s homes with heat and hot water. This abundance of cheap, largely CO2-free energy has attracted energy-hungry industries to the country like sharks to a carcass. Of these, by far the most energy intensive is the aluminium industry (Krater 2007; Saving Iceland 2007).
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