Saving Iceland

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

Plans to operate a 250-360 thousand ton aluminium smelter in Helguvík, which has in fact been under construction since 2008, seem ever more likely to be nothing but an inoperable myth of the past, according to environmentalists as well as high ranking officials within the energy sector. Aluminium producer Norðurál (alias Century Aluminum, which already operates one smelter in Iceland), has not only been unable to guarantee the necessary minimum 435 MW of energy but is also stuck in an arbitration conflict with its planned energy supplier HS Orka (owned by Alterra Power, former Magma Energy), concerning energy price. Additionally, environmentalists’ warnings – that the geothermal energy planned to run the smelter can simply not be found – have gained strength and lead to the inevitable question if the damming of river Þjórsá has been planned for Helguvík.

During a recent meeting of chairmen from all the member unions of the Icelandic Confederation of Labour (ASÍ), Hörður Arnarson, the director of the national energy company, Landsvirkjun, said that due to the current situation on international markets it would be enormously difficult for Norðurál to finance the 250 billion ISK smelter project. According to Vilhjálmur Birgisson, who attended the meeting, chairman of the Labor Union of Akranes (near to Grundartangi, where Century’s currently operating smelter is located),  Hörður spoke of the Helguvík project’s likelihood as very negligible. Another representative at the meeting, Kristján Gunnarsson, chairman of the Labour and Fishermen Union of Keflavík, stated that when asked about the possibility of Landsvirkjun selling energy to Norðurál, Hörður answered saying that no energy is really available for the project.

While it certainly is true that Landsvirkjun has, especially in the nearest past, had problems with financing, due to the international financial crisis as well as the Icelandic economy’s instability, the latter point – that no energy is actually available for Helguvík – is of more importance here. Environmentalists have, from the beginning of the Helguvík project, stated that the plans to harness energy for the smelter in geothermal areas on the Reykjanes peninsula, are not sufficient, for two reasons. Firstly, as the alleged size of the energy extraction is not sustainable and is more than likely to drain these unique natural areas for good. Secondly, because even if fully exploited, the geothermal areas would not produce enough energy for the smelter. Another energy source will be essential in order for the smelter to operate and even though Reykjavík Energy (OR) has promised Century some energy from a planned enlargement of their power plant in Hellisheiði, the aluminium producer still faces a serious lack of electricity for Helguvík. Read More

From The Reykjavík Grapevine

The smallest aluminium smelter in Iceland uses 50% more electricity than all of Iceland’s households and businesses combined, while contributing very little to the country’s GDP. Heavy industry has often been touted by Icelandic conservatives as a cash cow: foreign companies can provide the country with jobs, while utilising Iceland’s green energy to produce aluminium in a cleaner fashion.

While the myth of the “green smelter” has been definitively put to rest, aluminium is still billed by some as being good for the economy. However, Vilhjálmur Þorsteinsson – the chair of a study group assembled by the Ministry of Industry that studies Iceland’s energy use – has come to some damning conclusions about smelters in Iceland.

Iceland’s three aluminium smelters – Alcoa in Reyðarfjörður, Norðurál in Grundartangi, and Rio Tinto Alcan in Straumsvík – consume approximately 13 terawatt hours of electricity. The entire capacity of Iceland’s electrical output is 17 terawatt hours. Furthermore, Straumsvík – the smallest smelter in the country – uses 3.6 terawatt hours. The combined total energy consumption of every home and business in Iceland (apart from the smelters) equals only 2.3 terawatt hours.

At the same time, even the best estimates of what smelters contribute to the economy only put them in the neighbourhood of contributing to 5% of the GDP. Tourism accounts for about the same percentage of the GDP while using far less of the power grid. Meanwhile, Iceland’s service sector accounts for 69.9% of its GDP, and fishing accounts for 12%.

After a six years process Alcoa in Iceland has withdrawn its plans to build a 250 thousand ton aluminium smelter in Bakki, near Húsavík in the North of Iceland. It is now clear, according to the company, that the energy needed to run the proposed smelter will not be provided and, even if it could be provided, the company finds the price too high. Tómas Már Sigurðsson, the director of Alcoa in Iceland, announced this yesterday on a meeting in Húsavík, marking a milestone in the struggle against the aluminium industry’s further development in Iceland.

As from 2005 Alcoa, along with national energy company Landsvirkjun, Húsavík’s authorities and – to begin with – the Icelandic authorities, has been working on the project, which would have required at least 400 MW of energy, produced by harnessing geothermal areas and glacial rivers in the North. In 2008 a Memorandum of Understanding (MOU) between Landsvirkjun and Alcoa expired, and a year later the same happened concerning a MOU between the aluminium producer and the Icelandic government, the latter not willing to renew it.

Since then Landsvirkjun has signed a few other MOUs, regarding geothermal energy commerce, with possible buyers such as data centres and silicon factories, in some ways meeting with a popular demand for less destructive and more “green” use of the geothermal energy. Regardless of what one finds about the alleged “greenness” of such enterprises this development has inevitably raised the question if Landsvirkjun would be able to feed both Alcoa’s planned smelter and at the same time these smaller, less energy intensive factories. Read More

During 2007 and 2008, Kandhamal, a district of the eastern Indian state of Odisha, witnessed organised attacks on Christians in some of the worst communal violence in India’s history.

Through survivors’ testimonies, Kandhamal 2008 examines how Hindu supremacist groups turned two communities – Adivasi (indigenous) Konds and Pano Dalit Christians – against each other, with the tacit support of the State Government and local administration. More than 50,000 people became refugees, 5,000 houses were burnt and destroyed, at least 400 churches, prayer halls and institutions were desecrated, demolished or burnt down. This region is extremely poor, but rich in mineral resources which have attracted multinational mining companies including British firm Vedanta. The Odisha Government has ruthlessly pursued neo-liberal land acquisition policies formulated by the UK’s (Department for International Development (DfID) and the World Bank. The Konds have consistently fought this corporate land grab and the film highlights how Hindu supremacist groups and the State Government have sought to undermine that struggle.

Kandhamal 2008 will be premiered on Tuesday, 1 November, in Rm CLM.6.02 Clement House, London School of Economics at 7.15 pm. Director and researcher Samarendra Das, who was born in Odisha and has lived most of his life in Kandhamal, will discuss the background to and making of the film. Samarendra’s book, Out of this Earth: East India Adivasis and the Aluminium Cartel (Orient Black Swan, 2010), which was co-written by anthropologist Felix Padel, is a thorough study of the aluminium industry and its global impacts. For more information about the documentary screening contact: sasg@southasiasolidarity.org.

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

After a successful première in June this year – one critic describing the film as a “ticking timebomb” – Haukur Már Helgason’s documentary about The Reykjavík Nine is finally about to be shown in cinemas. From the 9th of September the film, named ‘Ge9n’  (‘A9ainst ’ in English, bearing the subhead ‘A motivational success story inspired by Iceland’), will be screened both with and without English subtitles in Bíó Paradís, an independently run cinema in Hverfisgata, Reykjavík. Information about international screening will be announced later but in the meantime, if not in Iceland, enjoy the film’s recently premièred trailer here below.

Ge9n trailer (EN) from SeND film tank on Vimeo.

If not familiar with The Reykjavík Nine – nine people who were charged and later acquitted of attacking Iceland’s parliament after wanting to enter the building’s public gallery on December 8th 2008, a few months after Iceland’s economic collapse – then you can read through the whole case on the nine’s official support website. Check out a short, sharp and informative video from the 2011 London Anarchist Bookfair or download a brochure that was published and distributed shortly before the case’s main procedure, which took place in January 2011.

Also take a look at Ge9n’s official website where you can find a very nice poster, a press kit and the film’s title song: Stóriðjuverkefnið mig, composed and performed by Linus Orri and Þórir Bogason. Finally, read a review of the film’s première (the one mentioning the “ticking timebomb”) and an exclusive interview with the film’s director, Haukur Már Helgason (p. 30-32).

A broad general reconciliation on environmental and industrial affairs in Hvalfjörður has been completely ignored and stepped on by the Associated Icelandic Ports under the administration of a member of the social-democratic party Samfylkingin. This says Sigurbjörn Hjaltason, farmer in Hvalfjörður, who recently called for an investigation into the possible connection between bone deformities in his sheep’s skulls and an environmental accident at the Norðurál aluminium smelter in Grundartangi in 2006. Sigurbjörn has now raised awareness to yet another potential ecological disaster in Hvalfjörður – a fjord which already hosts two highly polluting factories: an aluminium smelter owned by Norðurál/Century Aluminium and an Elkem ferro silicon plant – as well as the abuse of power entailed in the process.

In a recent article, originally published on news-website Pressan, Sigurbjörn says that before the municipal elections in spring 2009, the community in Hvalfjörður settled upon an agreement about environmental and industrial affairs. But under the administration of Hjálmar Sveinsson (on photo), who is a vice-councilman of Reykjavík for Samfylkingin, a joint venture of several port authorities in the Faxaflói area, titled the Associated Icelandic Ports, is enabling the way for the construction of yet another two factories at the Grundatangi industrial site in Hvalfjörður, where the two aforementioned factories are located. Sigurbjörn describes the whole process as a very dubious one: Read More

Originally published by Reykjavík Grapevine

A plan to build three dams in the river Þjórsá could wipe out salmon in the river. National power company Landsvirkjun insist they have measures on the table to keep the salmon alive. Vísir reports that an environmental assessment has already confirmed that should the three proposed dams be built, the salmon that use the river will disappear.

Plans to dam Þjórsá have not been without their controversy, as the project has been heatedly debated for years now. In fact, the notion that damming up the river would wipe out salmon from the river was known as far back as 2002. While Landsvirkjun says they would construct what effectively amounts to a sperm bank for salmon to fertilise eggs, the Ministry for the Environment has looked at the plan and concluded that nothing in the plan indicates that it would even work.

The three dams have been green-lit, though, so the options now on the table are to either find some other way to save the river’s salmon while construction goes underway, or to pull the plug on construction, either temporarily or permanently. Neither option will be inexpensive for the parties involved.

Report by Dr. Ranghildur Sigurðardóttir on the effects of a dam at Urriðafoss in Þjórsá. (in Icelandic)