Saving Iceland

In his much celebrated play, Accidental Death of an Anarchist, Italian absurdist Dario Fo brings forth a tragicomic picture of the scandal and its most typical aftermaths in democratic societies, thus described by the main protagonist, the Maniac:

People can let off steam, get angry, shudder at the thought of it… ‘Who do these politicians think they are?’ ‘Scumbag generals!’ […] And they get more and more angry, and then, burp! A little liberatory burp to relieve their social indigestion.

These words came to mind last month when Iceland’s media reported upon the current situation of river Lagarfljót in the east of Iceland. “Lagarfljót is dead,” some of them even stated, citing the words of author and environmentalist Andri Snær Magnason regarding a revelation of the fact that the river’s ecosystem has literally been killed by the the gigantic Kárahnjúkar Dams. The dams were built in Iceland’s eastern highlands in the years between 2002 and 2006, solely to provide electricity for aluminium giant and arms producer Alcoa’s smelter in the eastern municipality of Reyðarfjörður.

The revelation of Lagarfljót’s current situation originates in a report made by Landsvirkjun, Iceland’s state owned energy company and owner of the 690 MW Kárahnjúkar power plant, the main conclusions of which were made public last month. Although covered as breaking news and somewhat of a scandal, this particular revelation can hardly be considered as surprising news.

Quite the contrary, environmentalists and scientists have repeatedly pointed out the mega-project’s devastating irreversible environmental impacts — in addition to the social and economical ones of course — and have, in fact, done so ever since the plan was brought onto the drawing tables to begin with. Such warnings, however, were systematically silenced by Iceland’s authorities and dismissed as “political rather than scientific”, propaganda against progress and opposition to “green energy” — only to be proven right time and time again during the last half a decade.

AQUATIC ECOSYSTEMS SHOULD RECEIVE MORE ATTENTION

One of the Kárahnjúkar plant’s functions depends on diverting glacial river Jökulsá á Dal into another glacial river Jökulsá í Fljótsdal, the latter of which feeds Lagarfljót. This means that huge amounts of glacial turbidity are funnelled into the river, quantitatively heretofore unknown in Lagarfljót. This has, in return, led to the disintegration of Lagarfljót’s ecosystem, gargantuan land erosion on the banks of the river, serious decrease in fish population and parallel negative impacts on the area’s bird life.

As reported by Saving Iceland in late 2011, when the dams impacts on Lagarfljót had become a subject matter of Iceland’s media, the glacial turbidity has severely altered Lagarfljót’s colour. Therefore, sunlight doesn’t reach deep enough into the water, bringing about a decrease of photosynthesis — the fundamental basis for organic production — and thereby a systematic reduction of nourishment for the fish population. Recent research conducted by Iceland’s Institute of Freshwater Fisheries show that in the area around Egilsstaðir, a municipality located on the banks of Lagarfljót, the river’s visibility is currently less than 20cm deep compared to 60cm before the dams were constructed. As a result of this, not only is there less fish in the river — the size of the fish has also seen a serious decrease.

Following last month’s revelation, ichthyologist Guðni Guðbergsson at the Institute of Freshwater Fisheries, highlighted in an interview with RÚV (Iceland’s National Broadcasting Service) that the destruction of Lagarfljót’s ecosystem had certainly been foreseen and repeatedly pointed out. He also maintained that aquatic environment tends to be kept out of the discourse on hydro dams. “People see what is aboveground, they see vegetation, soil erosion and drift,” he stated, “but when it comes to aquatic ecosystems, people don’t seem to see it very clearly. This biosphere should receive more attention.”

BENDING ALL THE RULES

All of the above-mentioned had been warned of before the dams construction took place, most importantly in a 2001 ruling by Skipulagsstofnun (Iceland’s National Planning Agency) which, after reviewing the Kárahnjúkar plant’s Environmental Impact Assessment, concluded that “the development would result in great hydrological changes, which would have an effect, for example, on the groundwater level in low-lying areas adjacent to Jökulsá í Fljótsdal and Lagarfljót, which in turn would have an impact on vegetation, bird-life and agriculture.” The impacts on Lagarfljót being only one of the dams numerous all-too-obvious negative impacts, Skipulagsstofnun opposed the project as a whole “on grounds of its considerable impact on the environment and the unsatisfactory information presented regarding individual parts of the project and its consequences for the environment.”

However, Iceland’s then Minister of the Environment, Siv Friðleifsdóttir, notoriously overturned the agency’s ruling and permitted the construction. Although her act of overturning her own agency’s ruling is certainly a unique one, it was nevertheless fully harmonious with the mega-project’s overall modus operandi: For instance, during Alcoa and the Icelandic government’s signature ceremony in 2003, Friðrik Sophusson, then director of Landsvirkjun, and Valgerður Sverrisdóttir, then Minister of Industry, boasted of “bending all the rules, just for this project” while speaking to the US ambassador in Iceland.

A BIOLOGICAL WONDER TURNED INTO DESERT

As already mentioned, the destruction of Lagarfljót is only one of the dams irreversible impacts on the whole North-East part of Iceland, the most densely vegetated area north of Vatnajökull — the world’s largest non-arctic glacier — and one of the few regions in Iceland where soil and vegetation were more or less intact. Altogether, the project affects 3,000 square km of land, no less than 3% of Iceland’s total landmass, extending from the edge of Vatnajökull to the estuary of the Héraðsflói glacial river.

Sixty major waterfalls were destroyed and innumerable unique geological formations drowned, not to forget Kringilsárrani — the calving ground of a third of Iceland’s reindeer population — which was partly drowned and devastated in full by the project. In 1975, Kringilsárrani had been officially declared as protected but in order to enable the Kárahnjúkar dams and the 57 km2 Hálslón reservoir, Siv Fiðleifsdóttir decided to reduce the reserve by one fourth in 2003. When criticized for this infamous act, Siv stated that “although some place is declared protected, it doesn’t mean that it will be protected forever.”

The dams have also blocked silt emissions of the two aforementioned glacial rivers, Jökulsá á Dal and Jökulsá í Fljótsdal, resulting in the receding of the combined delta of the two rivers — destroying a unique nature habitat in the delta. In their 2003 article, published in World Birdwatch, ornithologists Einar Þorleifsson and Jóhann Óli Hilmarsson outlined another problem of great importance:

All glacier rivers are heavy with sediments, and the two rivers are muddy brown in summer and carry huge amounts of sediment, both glacial mud and sand. The Jökulsá á Dal river is exceptional in the way that it carries on average 13 times more sediment than any other Icelandic river, 10 million metric tons per year and during glacial surges the amount is many times more. When the river has been dammed this sediment will mostly settle in the reservoir.

In contravention of the claim that Kárahnjúkar’s hydro electricity is a “green and renewable energy source,” it is estimated that the reservoir will silt up in between forty and eighty years, turning this once most biologically diverse regions of the Icelandic highlands into a desert. While this destruction is slowly but systematically taking place, the dry dusty silt banks caused by the reservoir’s fluctuating water levels are already causing dust storms affecting the vegetation of over 3000 sq km, as explained in Einar and Jóhann’s article:

The reservoir will be filled with water in autumn but in spring 2/3 of the lake bottom are dry and the prevailing warm mountain wind will blow from the south-west, taking the light dry glacial sediment mud in the air and causing considerable problems for the vegetation in the highlands and for the people in the farmlands located in the valleys. To add to the problem the 120 km of mostly dry riverbed of Jökulsá á Dal will only have water in the autumn, leaving the mud to be blown by the wind in spring.

This development is already so severe that residents of the Eastfjords municipality Stöðvafjörður, with whom Saving Iceland recently spoke, stated that the wind-blown dust has been of such a great deal during the summers that they have often been unable to see the sky clearly.

All of the above-mentioned is only a part of the Kárahnjúkar dams over-all impacts, about which one can read thoroughly here. Among other factors that should not be forgotten in terms of hydro power would be the dams’ often underestimated contribution to global warming — for instance via reservoirs’ production of CO2 and methane (see here and here) — as well as glacial rivers’ important role in reducing pollution on earth by binding gases that cause global warming, and how mega-dams inhibit this function by hindering the rivers’ carrying of sediments out to sea.

TEXTBOOK EXAMPLE OF CORRUPTION AND ABUSE OF POWER

“Lagarfljót wasn’t destroyed by accident,” Andri Snær Magnason also said after the recent revelation, but rather “consciously destroyed by corrupt politicians who didn’t respect society’s rules, disregarded professional processes, and couldn’t tolerate informed discussion.” The same can, of course, be said about the Kárahnjúkar ecological, social and economical disaster as a whole, the process of which was one huge textbook example of corruption and abuse of power.

Responding to same news, Svandís Svavarsdóttir, Iceland’s current Minister of the Environment, cited a recent report by the European Environment Agency, titled “Late Lessons from Early Warnings,” in which the results of a major research project into mega-project’s environmental impacts and public discussion are published. One of the damning results, the report states, is that in 84 out of 88 instances included in the research, early warnings of negative impacts on the environment and public health proved to be correct.

This was certainly the case in Iceland where environmentalists and scientists who warned of all those foreseeable impacts, both before and during the construction, found themselves silenced and dismissed by the authorities who systematically attempted to suppress any opposition and keep their plans unaltered.

One of the most notorious examples of this took place after the publication of Susan DeMuth’s highly informative article, “Power Driven,” printed in The Guardian in 2003, in which she highlighted all the up-front disastrous impacts of the project. The reaction in Iceland was mixed: While the article served as a great gift to Icelandic environmentalists’ struggle — tour guide Lára Hanna Einarsdóttir suggesting “that an Icelandic journalist would have lost their job if he or she had been so outspoken” — the reaction of the project’s prime movers was one of fury and hysteria. Mike Baltzell, president of Alcoa Primary Development and one of the company’s main negotiators in Iceland, wrote to The Guardian accusing DeMuth of “creating a number of misconceptions” regarding the company’s forthcoming smelter. Iceland’s Ambassador in the UK and Landsvirkjun’s Sophusson took a step further, contacting the British newspaper in a complaint about the article’s content and offering the editor to send another journalist to Iceland in order to get “the real story” — an offer to which the paper never even bothered to reply.

Another example is that of Grímur Björnsson, geophysicist working at Reykjavík Energy at that time, who was forbidden from revealing his findings, which were suppressed and kept from parliament because they showed the Kárahnjúkar dams to be unsafe. His 2002 report, highly critical of the dams, was stamped as confidential by his superior at the time. Valgerður Sverrisdóttir, then Minister of Industry, subsequently failed to reveal the details of the report to parliament before parliamentarians voted on the dams, as she was legally obliged to do. Adding insult to injury, Grímur was finally deprived of his freedom of expression when his superior at Reykjavík Energy — taking sides with Landsvirkjun — prohibited him to speak officially about the Kárahnjúkar dams without permission from the latter company’s director at that time, Friðrik Sophusson.

THE SHADOW OF POLLUTED MINDS

Similar methods applied to the East-fjords and other communities close to the dams and the smelter, where the project’s opponents were systematically ridiculed, terrorized and threatened. One of them is Þórhallur Þorsteinsson who, in a thorough interview with newspaper DV last spring, described how he and other environmentalists from the East were persecuted for their opposition to the dams. In an attempt to get him fired from his job, politicians from the region even called his supervisor at the State Electric Power Works, for which he worked at the time, complaining about his active and vocal opposition. Another environmentalist, elementary school teacher Karen Egilsdóttir, had to put up with parents calling her school’s headmaster, demanding that their kids would be exempt from attending her classes.

Farmer Guðmundur Beck — described by DeMuth as “the lone voice of resistance in Reyðarfjörður” — was also harassed because of his outspoken opposition towards the dams and the smelter. After spending his first 57 years on his family’s farm where he raised chicken and sheep, he was forced to close down the farm after he was banned from grazing his sheep and 18 electricity pylons were built across his land. Moreover, he was literally ostracised from Reyðarfjörður where Alcoa’s presence had altered society in a way thus described by Guðundur at Saving Iceland’s 2007 international conference:

In the East-fjords, we used to have self-sustaining communities that have now been destroyed and converted into places attracting gold diggers. Around the smelter, there will now be a community where nobody can live, work or feed themselves without bowing down for “Alcoa Director” Mr. Tómas.* — We live in the shadow of polluted minds.

(*Mr. Tómas” is Tómas Már Sigurðsson, Managing Director of Alcoa Fjarðaál at that time but currently president of Alcoa’s European Region and Global Primary Products Europe. Read Guðmundur’s whole speech in the second issue of Saving Iceland’s Voices of the Wilderness magazine.)

A LESSON TO LEARN?

All of this leads us to the fact that Icelandic energy companies are now planning to go ahead and construct a number of large-scale power plants — most of them located in highly sensitive geothermal areas — despite a seemingly non-stop tsunami of revelations regarding the negative environmental and public health impacts of already operating geothermal plants of such size. This would, as thoroughly outlined by Saving Iceland, lead to the literal ecocide of highly unique geothermal fields in the Reykjanes peninsula as well as in North Iceland.

Two of the latter areas are Þeistareykir and Bjarnarflag, not far from river Laxá and lake Mývatn, where Landsvirkjun wants to build power plants to provide energy to heavy industry projects in the north. Large-scale geothermal exploitation at Hellisheiði, south-west Iceland, has already proven to be disastrous for the environment, creating thousands of earthquakes and a number of polluted effluent water lagoons. The Hellisheiði plant has also spread enormous amounts of sulphide pollution over the nearby town of Hveragerði and the capital area of Reykjavík, leading to an increase in the purchasing of asthma medicine. Another geothermal plant, Nesjavallavirkjun, has had just as grave impacts, leading for instance to the partial biological death of lake Þingvallavatn, into which affluent water from the plant has been pumped.

Responding to criticism, Landsvirkjun has claimed that the Bjarnarflag plant’s effluent water will be pumped down below lake Mývatn’s ground water streams. However, the company has resisted answering critical questions regarding how they plan to avoid all the possible problems — similar to those at Hellisheiði and Nesjavellir — which might occur because of the pumping and thus impact the ecosystem of Mývatn and its neighbouring environment. In view of this, some have suggested that Iceland’s next man made ecological disaster will be manifested in a headline similar to last month’s one — this time stating that “Mývatn is dead!”

Concluding the current Lagarfljót scandal — only one manifestation of the foreseen and systematically warned of Kárahnjúkar scandal — the remaining question must be: Will Icelanders learn a lesson from this textbook example of political corruption and abuse of power?

Recent polls regarding the coming parliament elections on April 27, suggests that the answer is negative as the heavy-industry-friendly Framsóknarflokkur (The Progressive Party), for which both Siv Friðleifsdóttir and Valgerður Sverrisdóttir sat in parliament, seems to be about to get into power again after being all but voted out of parliament in the 2007 elections. Following the Progressives, the right-wing conservative Sjálfstæðisflokkur (The Independence Party) is currently the second biggest party, meaning that a right-wing government, supportive of — and in fact highly interrelated to — the aluminium and energy industries, is likely to come into office in only a few days from now.

In such a case, Iceland will be landed with the very same government that was responsible for the Kárahnjúkar disaster as well as so many other political maleficences, including the financial hazardousness that lead to the 2008 economic collapse and Iceland’s support of the invasion in Iraq — only with new heads standing out of the same old suits. Sadly but truly, this would fit perfectly with the words of Dario Fo’s Maniac when he states on behalf of the establishment:

Let the scandal come, because on the basis of that scandal a more durable power of the state will be founded!

While driving Iceland’s national ring road, in a southerly direction from Reykjavík, one cannot miss noticing the steam coming up from an extraordinarily grey infrastructure covering a large piece of land around mount Hengill, approximately 30 km from the capital. Filled with roads, drills, pipelines, and a large powerhouse, this once untouched geothermal area is now the site of the Hellisheiði geothermal power plant, operated by the publicly owned Reykjavík Energy (“Orkuveita Reykjavíkur” in Icelandic, abbreviated “OR”), generating electricity almost entirely for aluminium production.

Geothermal energy is commonly praised as a “green” alternative to environmentally unfriendly power sources such as fossil fuels, coals and nuclear energy. As a result of “the development of what were once thought to be non-viable resources”, a glossy brochure from engineering firm Mannvit states, “more and more public and private entities are looking into geothermal power as part of their strategy to mitigate global warming while still meeting growing energy demands.” In a promotional text for the Geothermal Energy Exhibition at Hellisheiði, the plant is said to be a “striking example of how geothermal energy is harnessed in a sustainable manner in Iceland and a showcase for the rest of the world.” Additionally, Reykjavík Energy has not hesitated maintaining that “general public opinion of exploiting the geothermal resources in the Hengill region is positive.”

So many men, so many minds. Only about ten kilometres away from the plant stands the small town of Hveragerði, wherein one gets to hear a completely different story. “We cannot accept that OR will be permitted to continue polluting the atmosphere,” Hallgrímur Þ. Magnússon, clinical doctor in Hveragerði said to newspaper DV last June. A few days earlier he had voiced his worries to local newspaper Sunnlenska, encouraging the town’s residents to start taking magnesium and iodide supplements to counteract the health impacts of the power plant’s sulphur (hydrogen sulphide) pollution. “I maintain that the pollution is of such quantity that the human body needs those two materials in order to resist the effects,” Hallgrímur said to Sunnlenska.

Recent inspection makes it clear that the sulphur pollution, which does not only reach to Hveragerði but also to Reykjavík, often goes far above Icelandic and international standards. In the case of Hveragerði, the quantity of polluting materials in the atmosphere is such that the town should be considered within the plant’s dilution area (the area in which residential homes are not permitted).

EFFLUENT LAGOONS AND MANMADE EARTHQUAKES

Unfortunately for the burgeoning and PR heavy Icelandic energy sector, the green image of geothermal power has been repeatedly challenged lately. In particular regarding the country’s and, in fact, the world’s biggest geothermal plant at Hellisheiði. Two new unplanned effluent lagoons were recently discovered close to the plant, where waste water from geothermal pumping had leaked out onto the surface. Environmentalist and journalist Ómar Ragnarsson, who originally discovered the lagoons, followed the story by publishing his own photographs of similar lakes created by other geothermal plants, such as those by the plants at Reykjanes, Svartsengi, Nesjavellir and Bjarnarflag¹. These lakes can be very dangerous to local freshwater systems, as Saving Iceland’s Jaap Krater and Miriam Rose explain in a book chapter on the development of geothermal harnessing in Iceland:

Geothermal fluids contain high concentrations of heavy metals and other toxic elements, including radon, arsenic, mercury, ammonia and boron, which are damaging to the freshwater systems into which they are released as waste water. Arsenic concentrations of 0.5 to 4.6 ppm are found in waste water released from geothermal power plants; the WHO recommends a maximum 0.01 ppm in drinking water.²

Yet another backlash for the geothermal industry is a recent study, carried out by Hanne Krage Carlsen, whose results were published in the international Environmental Research journal earlier this year³. The study shows a direct link between the plant’s sulphur pollution and increased purchase of asthma medicine among the residents of the greater Reykjavík area. New examination of vegetation in the Hellisheiði area also shows that the sulphur pollution has damaged large quantities of moss, which according to Magnea Magnúsdóttir who carried out the examination, will take decades to recover⁴. OR claims that the results of the plant’s Environmental Impact Assessment “indicate that construction of the plant will not have a lasting influence on the area’s vegetation” — something which, according to this recent information, needs to be questioned.

POLLUTION ABOVE GUIDELINE LIMITS

During OR’s Annual General Meeting (AGM) last June, it was revealed that Hveragerði is inside an area wherein sulphur (hydrogen sulphide) pollution is above the current guideline limits. New rules are supposed to go through in 2014, according to which the guideline limits will be strict 50 micrograms per square-meter per 24 hours. The authorities will also be obliged to alarm the public each time the pollution goes above that limit.

Though they admit the plant’s high concentration of polluting emissions, OR has said that the company will not able to adapt to the new rules until 2019 at the earliest. Therefore, the company will ask for an exception, to which the people of Hveragerði are heavily opposed. In an interview with Iceland’s National Broadcasting Service (RÚV), the town’s Mayor Aldís Hafsteinsdóttir protested against the company’s request, stating that OR had obviously rushed way too fast when preparing and building the plant and thus underestimated its environmental impacts. In a separate interview with Saving Iceland’s Miriam Rose this June, Aldís emphasized this point:

We feel very much like victims of all of this. This town has been here for 70 years and the power plant has only been here for 10 or 15. They should have considered the effects on the neighbourhood they were putting it in. It is absolutely obvious that the plant is situated too close to our town, as there are so many impacts that affect daily life here in Hveragerði.

Adding fuel to such criticism, Minister of the Environment Svandís Svavarsdóttir followed in the footsteps of many environmentalists and told RÚV, in an interview last June, that OR had been nothing but the puppet of heavy industry for the last years. That explains not only the company’s poor financial situation but also the environmental catastrophe at Hellisheiði, Svandís said. Mayor Aldís agrees: “They [OR] have sold their energy to the aluminium smelters way too cheap and now they can’t afford to reduce their pollution. That is, in my opinion, the reason why they are trying to stop the new regulations.”

DILUTION AREA: BIGGER THAN OF ALUMINIUM SMELTERS

The Hellisheiði plant started operating in 2006 and has since then seen two expansions, in 2008 and 2011, leading to increased sulphur pollution. Most of the energy goes to the aluminium smelter in Grundartangi, owned and operated by the North-American Century Aluminium, which then again is owned by mining and commodities giant Glencore.

Demonstrating Iceland’s haphazard approach to the development of geothermal energy, the Hellisheiði power plants’ dilution area has yet to be defined after six years of operation. However, it is clear from recent evidence that the dilution areas for geothermal plants should be much larger than for other polluting industries in Iceland — much bigger, for instance, than Rio Tinto Alcan’s aluminium smelter in Straumsvík and Century’s in Grundartangi, as reported by newspaper Morgunblaðið in June⁵. During OR’s recent AGM, their environmental director Hólmfríður Sigurðardóttir, admitted that she could not guarantee that the health of people living inside the area where pollution is above guideline limits (i.e. people living inside the dilution area) is not negatively affected by the pollution. Permanent residence is, in fact, prohibited inside such areas by law and land use is restricted to several limitations.

Interestingly, the Environmental Impact Assessment (EIA) for the Hellisheiði power station, carried out by engineering firm VGK on behalf of OR, overlooked the potential impacts on Hveragerði altogether, though it did take into consideration the negligible impacts on Þorlákshöfn and other towns much further away from the plant.

In September 2011 more than 1500 earthquakes were felt in Hveragerði in a single day, with other quakes going on for several weeks, some up to 4 on the Richter scale⁶. At first OR denied any culpability in the incident, though the residents immediately recognised the quakes as being unusual as many were focused on a single spot. However, after a few days they admitted that they had been pumping geothermal effluent water back into the ground, which is necessary to prevent surface pollution, but is well known by geologists to be a cause of man-made earthquakes. OR responded to the resident’s outrage over the quakes by holding a public meeting in which they claimed they were simply speeding up the release of earthquakes that would have happened anyway in the future. To this local resident Einar Bergmundur stood up and stated: “That is a very good argument. I am also sure I am going to die one day, but that doesn’t give you the right to kill me today to speed the process up?”

THE GUINEA PIGS OF HVERAGERÐI

In January this year some residents of Hveragerði started experiencing breathlessness, coughing and nausea as well as a strong sulphurous smell. They called Aldís to ask what was going on. Thanks to a monitoring site the residents had requested OR to install on their kindergarten, Aldís was able to see that hydrogen sulphide levels had persistently been in the hundreds of micrograms for more than a week. One day they had reached 337µg, more than double the current regulations, and almost seven times higher than the new regulations would allow. With the man-made earthquakes still on their minds, the residents were furious. Aldís told us that despite this breach of regulations no action seems to have been taken by OR:

I just can’t believe that this is how it is supposed to be — that the locals are supposed to monitor these levels themselves. There must be some institution that is supposed to take care of the people and make sure that we are not breathing this. But it did not happen. We live here, we have kids, the elderly are fragile and some have bad lungs. They [OR] are experimenting with these technologies as they build the plants. If they wanted to use us, the inhabitants of Hveragerði as guinea pigs they should have asked us first and not let everything that has happened here come as a surprise. They must have known better before they started this project and that is a fact the makes us angry. Our experience of the Hellisheiði power plant teaches us that not a single plant should be built here in the vicinity before they have a complete control of those matters that have gone wrong in Hellisheiði.

In response to such criticism, OR published a press releases claiming that there are no health risks at that level of exposure and that much of the science which says so is contended. They invite people to visit the plant and breathe the fumes, and even suggest that up to 14,000µg of Hydrogen Sulphide is acceptable to breathe for up to 8 hours⁷.

The World Health Organisation (WHO) does not agree. They state that concentrations above 280µg can cause breathing problems, followed by eye irritation at 500µg, loss of energy and increased lactic acid in the blood at 700µg, and finally headaches, irritability, dizziness, memory loss and fatigue at 2800µg. By 14,000µg people tend to suffer “olfactory paralysis” — a shut down of sense of smell which prevents them from noticing the odour and accompanying dangers. The WHO recommends a maximum guideline of 150 µg/m3 for a 24 hour period to ensure “the absence of appreciable risks that can cause adverse health effects” whereas the Californian regulation limits Hydrogen Sulphide emissions to 43 µg/m3 for more than an hour to prevent strong smell⁸. Iceland’s current regulations are weak by international standards and even these weak standards are not being enforced.

In the same press release OR presented a diagram of emissions from Hellisheiði showing that 99.49% of the steam released from the power plant is made up of water, while only 0.42% is CO2 and 0.08% Hydrogen Sulphide. This is a clear attempt at greenwashing the reality, as it is self evident that steam is largely made up of water and that this is not how sulphur concentrations in the environment are measured. These widely broadcast figures try to downplay well established science in what Aldís called “an insult to the intelligence of the people of Hveragerði.”

REYKJAVÍK’S CITY COUNCIL OPERATING AGAINST ITS OWN POLICY

Yet another 90 MW expansion is now planned in the area of Hverahlíð, south of the Hellisheiði plant and even closer to Hveragerði. The Hverahlíð plant is supposed to generate energy for another Century smelter, which currently stands half built and collecting dust in Helguvík, close to the Keflavík International Airport. The Helguvík project has been criticised from the beginning of its construction in 2008, not only for environmental reasons but also for the major energy uncertainty the project has long faced. During the smelter’s ceremonial first shovelling — interrupted by Saving Iceland activists who rightly named it “Century’s Lack Of Permission Party” as the company did not have any permissions but to construct the building itself — Century’s director in Iceland, Ragnar Guðmundsson, said that he hoped the energy issues would be sorted in late 2010, when the smelter’s first phase would be complete.

Today the unfinished building stands like a skeleton at the construction site while the energy issue remains unsolved. Century has signed contracts with two energy companies, OR and HS Orka — the latter owned mostly by Canadian firm Alterra Power and partly by Icelandic pension funds — but neither company has been able to guarantee any energy. HS Orka hopes to be allowed to drill in the geothermal areas of the Reykjanes peninsula — a large-scale construction that would not only permanently alter the peninsula’s unique nature, but also, as many scientists have claimed, not produce enough energy for the Helguvík smelter.

OR, on the other hand, bets on Hverahlíð as an electricity supplier for Helguvík. But the company is heavily indebted after its recent aluminium adventures, which is one of the reasons the contract with Century should be breached, says Sóley Tómasdóttir from the Left Green party (“Vinstri græn”) and board member of OR. In an interview with RÚV in April this year, she maintained that the company should focus on the environmental impacts at Hellisheiði before even thinking about building new plants. She also criticised the current majority of Reykjavík’s city council (composed of the social democratic “Samfylkingin” and the centrist “Besti flokkurinn,” a new party that won the city elections in 2010), for not standing by its promises to stop selling new power from the publicly owned energy company to heavy industry projects.

In the same interview, Haraldur Flosi Ólafsson, chairman of the board, responded to this criticism by maintaining that despite the current majority’s official opposition to developing any further energy for aluminium production, the company would have to abide to already existing contracts. The Century contract is originally from 2006 but was renewed in late December 2008, less than three months after Iceland’s infamous economic collapse. At the aforementioned AGM, Haraldur’s words were echoed by the company’s director Bjarni Bjarnason, who said that in his opinion all future plans for building new power plants should be abandoned, as building new plants for private entities goes against the company’s current policy. However, Bjarni stated, already existing contracts needs to be abided.

Sóley disagrees, pointing out a clause in the contract, which should allow for the company’s withdrawal if it does not have the financial capacity to fund the project. But instead of doing so, OR is now planning to finance the Hverahlíð plant with the assistance of Icelandic pension funds. Such a step is generally seen as very controversial (such as in the heavily criticised case of HS Orka) and as the first step on the way to the privatisation of Iceland’s nature.

NEITHER SUSTAINABLE NOR RENEWABLE

The impacts of sulphur pollution, man made earthquakes and effluent lagoons appearing at Hellisheiði are of great importance in Iceland in view of the large scale geothermal plans which are increasingly being promoted in Mývatn and Reykjanes peninsula. According to the recently published parliamentary resolution for the so-called Master Plan for Hydro and Geothermal Energy Resources in Iceland, these geothermal power plans are definitely “on”, while several planned hydro dams are now “off”.

Effluent lagoons have already been discovered at test drilling sites at Þeistareykir and Bjarnarflag in the North⁹. If all of the planned geothermal power plants are built around Mývatn, the town of Reykahlíð will become exposed to 32,000 tons of hydrogen sulphide per year potentially raising serious health issues for residents¹⁰. In Reykjanes the two existing geothermal power plants at Svartsengi and Rekjanesvirkjun already produce huge amounts of hydrogen sulphide, and the proposed expansions and new projects would radically increase this figure. Scientists have warned that geothermal fields at Svartsengi are already overexploited and may not be able to produce power much longer¹¹. In addition many of the new proposed drilling sites are connected to the same geothermal aquifer and could very quickly become dried or cooled by excessive exploitation for large scale energy. For further information read Saving Iceland’s detailed account of the planned geothermal power projects on Reykjanes peninsula.)

The fact is that geothermal energy technology is still very new and little is known about the long term, or even short term effects of exploiting the heat of volcanic aquifers on such a large scale. In addition, geothermal areas are globally incredibly rare and each one is different, making the impacts of drilling and power generation hard to predict. Cambridge University professor David McKay’s comprehensive 2009 book on sustainable energy points out that geothermal power is neither sustainable nor renewable when used on a commercial scale as the wells can quickly dry up or cool down, taking more than a hundred years to recover afterwards¹², yet drastically altering the local environment. Experimenting with such an undeveloped technology in Iceland’s endemic geothermal hot spring areas, which the country is so famous for, could result in total destruction of these beautiful and unique places. All that for only a few years of energy production, which in turn would be sold at a cut rate price to heavy industry, reaping little reward for Icelandic people.

See Saving Iceland’s photos of the effects of drilling at Hellisheiði here. The photos are from 2008 when Saving Iceland’s then annual action camp against heavy industry was located at Hellisheiði. Read More

Recent studies show links between asthma and sulphur pollution from geothermal power plants. Reykjavík Energy denies their connection with newly discovered effluent water lagoons in Hellsheiði. The Parliament’s Industries Committee orders a report that condemns preservation of nature, presented in a parliamentary resolution for Iceland’s Energy Master Plans. Alterra Power announces lower revenues in Iceland and their plans to enlarge the Reykjanesvirkjun geothermal power plant despite fears of over-exploitation. Greenland faces Alcoa’s plans of an import of cheap Chinese labour en masse, while Cairn Energy dumps toxic materials into the ocean off the country’s shores.

This is the content of Saving Iceland’s first round of brief monthly news from the struggle over Iceland’s wilderness and connected struggles around the world.

Hellisheiði: Asthma, Sulphur Pollution and Effluent Water Lagoon

Those who promote large-scale geothermal energy production as green and environmentally friendly, are once again forced to face another backlash as a recent research suggests a direct link between sulphur pollution from the Hellisheiði geothermal plant and asthma among the inhabitants of Reykjavík. The results of this particular research, which was done by Hanne Krage Carlsen, doctorate student of Public Health at the University of Iceland, were published in the Environmental Research journal earlier this year, showing that the purchasing of asthma medicine increases between 5 and 10 percent in accordance with higher sulphur pollution numbers in the capital area of Reykjavík.

Adding to the continuous unmasking of the geothermal green myth, environmentalist Ómar Ragnarsson recently discovered and documented new lagoons, created by run-off water from Reykjavík Energy’s geothermal power plant in Hellisheiði. At first Reykjavík Energy denied that the lagoons’ water comes from the company’s power plant, but were forced to withdraw those words only a few days later. Ómar had then brought a journalist from RÚV, the National Broadcasting Service, to the lagoons and traced the water to the plant. Despite the company’s withdrawal, they nevertheless rejected worries voiced by environmentalists, regarding the very possible pollution of ground water in the area, and insisted that this is allowed for in the plant’s license.

According to the plant’s license the run-off water should actually be pumped back, down into earth, in order to prevent polluting impacts and the creation of lagoons containing a huge amount of polluting materials. Ómar’s discovery shows that this is certainly not the case all the time, and additionally, the pumping that has taken place so far has proved to be problematic, creating a series of man-made earthquakes in the area, causing serious disturbances in the neighbouring town of Hveragerði.

In an article following his discovery Ómar points out that for the last years, the general public has not had much knowledge about geothermal power plants’ run-off water, and much less considered it as a potential problem. Ómar blames this partly on the Icelandic media, which have been far from enthusiastic about reporting the inconvenient truth regarding geothermal power production. One of these facts is that the effluent water, which people tend to view positively due to the tourist attraction that has been made of it at the Blue Lagoon, is a token of a serious energy waste, as the current plants use only 13% of the energy while 87% goes into the air or into underutilized run off-water. These enlarging lagoons — not only evident in Hellisheiði but also by the geothermal power plants in Reykjanes, Svartsengi, Nesjavellir and Bjarnarflag — suggest that the energy companies’ promises regarding the pumping of run-off water, are far from easily kept.

The Fight Over Iceland’s Energy Master Plan Continues

During the last few weeks, the Icelandic Parliament’s Industries Committee received 333 remarks in connection with the committee’s work on a parliamentary resolution for Iceland’s Energy Master Plan. The resolution, which was presented by the Ministers of Industry and of Environment in April this year, gives a green light for a monstrous plan to turn the Reykjanes peninsula’s geothermal areas into a continuous industrial zone.

The remarks can generally be split into two groups based on senders and views: Firstly, individuals and environmentalist associations who, above all, protest the afore-mentioned Reykjanes plans. Secondly, companies and institutions with vested interests in the further heavy industrialization of Iceland who demand that the Master Plan’s second phase goes unaltered through parliament — that is, as it was before the parliamentary resolution was presented, in which the much-debated Þjórsá dams and other hydro power plants were still included in the exploitation category. Saving Iceland has published one of the remarks, written by Helga Katrín Tryggvadóttir, which differs from these two groups as it evaluates energy production and nature conservation in a larger, long-term context.

During the process, the head of the Industries Committee, Kristján Möller — MP for the social-democratic People’s Alliance, known for his stand in favour of heavy industry — ordered and paid for a remark sent by management company GAMMA. The company first entered discussion about one year ago after publishing a report, which promised that the national energy company Landsvirkjun could become the equivalent of the Norwegian Oil Fund, if the company would only be permitted to build dams like there is no tomorrow.

In a similarly gold-filled rhetoric, GAMMA’s remark regarding the Energy Master Plan states that the changes made by the two ministers — which in fact are the results of another public reviewing process last year — will cost Iceland’s society about 270 billion ISK and 5 thousand jobs. According to the company’s report, these amount are the would-be benefits of forcefully continuing the heavy industrialization of Iceland, a plan that has proved to be not only ecologically but also economically disastrous. Seen from that perspective, it does not come as a surprise realizing that the management company is largely staffed with economists who before the economic collapse of 2008 lead the disastrous adventures of Kaupþing, one of the three biggest Icelandic bubble banks.

Alterra Power: Decreases Revenue, Enlargement Plans in Iceland

Canadian energy company Alterra Power, the majority stakeholder of Icelandic energy company HS Orka, recently published the financial and operating results for the first quarter of this year. “Consolidated revenue for the current quarter was $16.4 million compared to $18.9 million in the comparative quarter,” the report states, “due to lower revenue from our Icelandic operations as a result of lower aluminium prices, which declined 13.9% versus the comparative quarter.”

At the same time, the company’s Executive Chairman Ross Beaty stated that Alterra is preparing for an enlargement of the Reykjanesvirkjun geothermal power plant, located at the south-west tip of the Reykjanes peninsula, which should increase the plant’s production capacity from the current 100 MW to 180 MW. The construction is supposed to start at the end of this year and to be financed with the 38 million USD purchase of new shares in HS Orka by Jarðvarmi, a company owned by fourteen Icelandic pension funds.

According to Alterra, permission for all construction-related activities is in place. However, as Saving Iceland has reported, Iceland’s National Energy Authority has officially stated their fears that increased energy production will lead to an over-exploitation of the plant’s geothermal reservoir. Furthermore, Ásgeir Margeirsson, Chairman of HS Orka, responded to Alterra’s claims stating that due to a conflict between the energy company and aluminium producer Norðurál, the construction might not start this year. According to existing contracts, the energy from the enlargement is supposed to power Norðurál’s planned aluminium smelter in Helguvík. That project, however, has been on hold for years due to financial and energy crisis, and seems to be nothing but a fantasy never to be realised.

Greenland: Cheap Chinese Labour and Toxic Dumping

The home rule government of Greenland is split in their stand on Alcoa’s plans to import 2 thousand Chinese workers for the construction of the company’s planned smelter in Maniitsoq. The biggest governing party, Inuit Ataqatigiit, is against the plan as the workers will not be paid the same amount as Greenlandic labour. On the other hand, the Democratic Party, which has two of the government’s nine ministerial seats, is in favour of the plans on the grounds that the workers’ working condition and payments will be better than in China.

In Iceland, during the construction of the Kárahnjúkar dams and Alcoa’s aluminium smelter in Reyðarfjörður, Chinese and Portuguese migrant workers were imported on a mass scale. More than 1700 work-related injuries were reported during the building of the dams, ten workers ended up with irrecoverable injuries and five workers died. In 2010, the Occupational Safety and Health Authority stated that the Kárahnjúkar project was in a different league to any other project in Iceland, with regard to work-related accidents.

At the same time as Greenland’s government argued over Alcoa, Danish newspaper Politiken reported that the Scottish oil company Cairn Energy — a company that, along with Indian mining giant Vedanta, shares the ownership of oil and gas company Cairn India — is responsible for dumping 160 tons of toxic materials into the ocean in the years of 2010 and 2011. The dumping is linked to the company’s search for oil off Greenland’s shore and is five times higher than the amount of comparable materials dumped in 2009 by every single oil platform of Denmark and Norway combined.

In April this year, Iceland’s Ministers of the Environment and of Industry presented a parliamentary resolution for Iceland’s Energy Master Plan, in which the controversial plans to dam river Þjórsá are put on hold while the unique geothermal areas of the Reykjanes Peninsula are set for a monstrous exploitation — one that will turn the peninsula into a continuous industrial zone. For the last weeks, the resolution has been in the hands of the Industries Committee of Iceland’s parliament — a process that included more than 300 letters of remarks, sent in by individuals, associations, institutions and corporations.

The remarks can generally be split into two groups based on senders and views: firstly, individuals and environmentalist associations who above all protest the afore-mentioned plans for the Reykjanes peninsula; secondly, companies and institutions with vested interests in the further heavy industrialization of Iceland who demand that the Master Plan’s second phase goes unaltered through parliament — that is, as it was before the parliamentary resolution was presented, in which the planned Þjórsá dams and other hydro power plants are included in the exploitation category.

One of the remarks sent in differs from the others as it evaluates energy production and nature conservation in a larger, long-term context. That remark, written by Helga Katrín Tryggvadóttir, MA in development studies, is published here below, translated from Icelandic by Saving Iceland.

I find myself inclined to make a few remarks regarding the Industries Committee’s discussion about the Energy Master Plan. My remarks do not concern particular natural areas but rather the comprehensive ideas regarding the scope and nature of the protection and exploitation of natural areas. Since the making of the Energy Master Plan begun, much has changed for the better as researches and knowledge on energy production and nature conservation continuously advance. The social pattern as well as opinions on nature conservation have also changed rapidly since the first draft for an Energy Master Plan was published, and the emphasis on nature conservation constantly increases. With this in mind it is necessary to take into account that during the next years, this emphasis on nature conservation is likely to increase even further. Therefore it is important for the Industries Committee to remember that keeping natural areas in pending does not prevent future utilization, whereas areas exploited today cannot be protected tomorrow.

Unsustainable Utilization

The many negative impacts of geothermal and hydro power plants have not been discussed thoroughly enough in Iceland. This can probably be explained by the the fact that these are renewable energy sources and thereby, people tend to view them as positive options for energy production. Thus we often hear that it is better to operate energy intensive industries here, using renewable energy sources, rather than in countries where the same industries are powered by electricity produced by coals and oil. However, when these issues are looked at it more accurately, we have to be aware of the fact that despite hydro and geothermal power’s renewability, their current utilization in Iceland is by no means sustainable.

Using the hydraulic head of glacial rivers, hydro power plants require reservoirs which deplete vegetated land, the reservoirs get filled with mud and by time the area becomes an eroded land. When it comes to geothermal areas, exploited for energy production, the seizure of fluid is much greater than the inflow into the geothermal reservoir and therefore the geothermal power dries up by time. At that point the area has to rest for a time still unknown in the geothermal sciences. Thus it is clear that although we are dealing with renewable energy sources, they do not at all allow for infinite energy production, and additionally the power plants themselves entail environmental destruction. It is clear that the utilization of these resources has to be executed very carefully, and preferably, all further utilization plans should be put on hold until it is possible to learn from the experience of the plants built in the very recent past.

CO2 Emission

A lot of emphasis has been put on the idea that Iceland possesses huge amounts of “green energy,” meaning that this energy does not burn fossil fuels. Thereby it is assumed that no CO2 emission takes place. This is, however, far from the truth: in 2008 the CO2 emission from geothermal plants in Iceland amounted to 185 thousand tons, which is 6% of the country’s total CO2 emission¹. Hydro dams also add to the amount of carbon in the atmosphere: big reservoirs cause the drowning of vegetated land, wherein rotting vegetation emits methane gas, increasing global warming. It is estimated that about 7% of carbon emitted by humans come from such constructions². The sediment of glacial rivers affects the ocean’s ecosystems and nourishes algae vegetation by the seashore. Marine organisms play an important part in extracting carbon from the atmosphere; it is estimated that such vegetation extracts about 15 times more of CO2 than a woodland of the same size³. Annually, the ocean is believed to extract 11 billion tons of CO2 emitted by men⁴. By damming glacial rivers, entailing disturbance of their sediment and of algae vegetation, Icelanders are not only threatening the fish stocks around the country, and thus the country’s fishing industry, but also further contributing to global warming in a way which is more dangerous than deforestation, though the latter has undergone much harsher criticism worldwide than the destruction of oceanic ecosystems.

Geothermal Power Plants

In the Energy Master Plan’s second phase, possible geothermal power plants are listed in 20 out of the 25 highest seats of exploitation. If the planned hydro dams, Hvamms- and Holtavirkjun, in river Þjórsá will be kept in pending — which I rejoice as a resident of the Skeiða- og Gnúpverjahreppur region — geothermal power plants will occupy 22 out of the 25 seats. Due to the fact that so little is known about the long-term impacts of geothermal power plants, this ordering is a matter of concern. Before further construction takes place, it is necessary to wait until more experience is gained from the already operating geothermal power plants. Many of the problems connected to these plants are still unsolved, for instance the dangerous material in the plants’ run-of water as well as their polluting emissions. This has to be taken into consideration, especially near the capital area of Reykjavík where sulphur pollution is already very high⁵.

It also has to be taken into account that geothermal energy production is not sustainable, as an geothermal area’s heat supply eventually dries up. Their usage allows for 50 years of production, which of course is a very limited amount of time. If the plan is to use such energy for industrial development it has to be kept in mind that 50 years pass very quickly, meaning that the jobs at stake are no long-term jobs. At the same time, such a short-term utilization encroaches on future generations’ right to utilize the geothermal energy sources, not to mention their right to utilize these areas by protecting them for outdoor activities and creation of knowledge, as Iceland’s geothermal areas are unique on a global scale. For the last weeks, we have witnessed how the already exploited geothermal areas, or those where test-drilling has taken place, have not at all been utilized in a way that goes together with tourism and outdoor activities, as the areas’ appearance and environment have been damaged on a large scale⁶.

Economical Arguments

When it comes to economical arguments, people often tend to call for short-term employment solutions, stating that it is important to construct as many possible power plants in the shortest time in order to create as many jobs as possible. The fact, however, is that a construction-driven economy will always lead to instability, and such instability is indeed the Icelandic economy’s largest bale. Above all, Iceland’s economy needs stability and a future vision that sees further than 10 years into the future. For a stable future economy to be built, it has to happen in a sustainable way, whereas continuous aggressive exploitation of the country’s natural resources will simply lead to an era of regular economic collapses. By putting such strong emphasis on the aggressive exploitation of hydro and geothermal resources, with the appendant construction bubbles, a situation of unemployment will be sustained, broken up by occasional and differently short-lived boom periods in between. Read More

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.

 

Unmasking the Geothermal Myth

In a world increasingly concerned about carbon emissions,” Jaap Krater and Miriam Rose state, “the clean image of hydroelectric and geothermal energy is appealing.” This has certainly been the case in Iceland, where the highly polluting aluminium industry has attempted to re-model their dirty image by powering their production with so-called ‘green energy’. However, this greenwashing has not entirely worked as the eastern highland’s Kárahnjúkar dams — fully built in 2007 to power an Alcoa aluminium smelter in Reyðarfjörður — have proven to be as ecologically and economically disastrous as environmentalists warned. As a result the aluminium companies have now mostly moved from hydro and instead are increasingly focussing on geothermal energy.

One of the companies is Norðurál, subsidiary of Century Aluminum, who claim that their planned 360 thousand ton aluminium smelter in Helguvík will be one the world’s most environmentally friendly smelters. Why so? Because according to the company, the 625 MW of electricity required to run a smelter of this size is supposed to come only from the peninsula’s geothermal energy sources. However, environmentalists and scientists consider the estimation of geothermal energy believed to be extractable from the peninsula to be highly over-estimated, and claim that additional hydro power plants would be needed to power the smelter. This would most likely come from the much-debated and now temporarily halted dams in the river of lower Þjórsá.

Last year, unable to access the necessary geothermal energy in north Iceland, aluminium company Alcoa was forced to withdraw their six years long plan to build a geothermal powered smelter at Bakki, Húsavík. We predict that if Century cannot force through the damming of lower Þjórsá a similar situation awaits Helguvík. But that has not stopped the project’s interested parties, who still state confidently that the smelter will be built, and powered with geothermal energy.

Regardless of the need for additional hydro power, the exploitation of the Reykjanes peninsula’s geothermal areas spells the end of this magnificent nature of the peninsula as we know it. Test drilling and boreholes, endless roads and power lines, power plants and other infrastructure; all this would turn the Reykjanes peninsula — this unique land of natural volcanic wonders, which many scientists and environmentalists believe to be one of the world’s best options for creating a giant volcano park with educational and tourism-related opportunities — into a large industrial zone.

But these are only the very visible impacts of the planned large-scale exploitation. Other environmental catastrophes are in fact inevitable with large scale geothermal industry, becoming increasingly visible to the public as the green reputation of geothermal energy slowly decreases.

Two of Saving Iceland’s spokespersons — ecological economist Jaap Krater and geologist Miriam Rose — have thoroughly analysed the development of Iceland’s geothermal potential in a chapter, written on behalf of Saving Iceland, and recently published in a book on the current energy crisis. While we strongly recommend the piece for further reading about the geothermal myths, a few of their points will be addressed here, with relevance to recent events in Iceland.

Firstly, geothermal gases are rich in a variety of harmful elements and chemical compounds such as sulphur dioxide, whose impacts are systematically underestimated according the Public Health Authority of Reykjavík. Since production began at the Hellisheiði geothermal power plant — often claimed to be the biggest of its kind in the world — in 2006, a 140 percent increase of sulphur pollution has been measured in the capital area of Reykjavík, only 30 kilometres away. Recent studies, conducted by the University of Iceland, suggest a direct link between increased sulphur pollution on the one hand, and increased use of medicine for asthma and heart disease ‘angina pectoris’ on the other hand. However, engineering firms such as Mannvit, authors of many of the Environmental Impacts Assessments for geothermal power-plants, have so far ignored these studies and instead based their assessments on so-called prediction models. (Read more about the sulphur pollution here and here.)

Secondly, at the end of last year it was revealed that for two years energy company Reykjavík Energy — who own and operate the Hellisheiði plant — had on occasions been pumping waste water containing hydrogen sulphide into drinking water aquifers. Sulphides are far from being the plants’ only damaging effluents entering our water system; Krater and Rose mention that “geothermal fluids contain high concentrations of heavy metals and other toxic elements, including radon, arsenic, mercury, ammonia, and boron.”

Thirdly, it is suggested that depletion of one geothermal reservoir can result in the drying up of surrounding hot spring areas. While large-scale exploitation in Iceland is probably too young to witness these effects, environmentalists and geologists have warned that exactly this will happen in the Reykjanes peninsula if the existing plans go ahead.

The Key Companies Involved

HS Orka

HS Orka is an energy company that owns and operates two geothermal power plants on the peninsula — Reykjanesvirkjun and Svartsengi — the majority of who’s energy goes to Norðurál’s aluminium smelter in Grundartangi, Hvalfjörður. HS Orka’s majority shareholder is Magma Energy Sweden A.B., a puppet company of the Canadian firm Magma Energy, which was established to get around laws that prevent non-Europeans from buying Icelandic companies. After Magma’s 66,6% share, the remaining 33,4% is owned by Icelandic pension funds.

Before privatisation HS Orka (then called Hitaveita Suðurnesja) was owned fifty-fifty by the Icelandic state and several municipalities on the country’s south-west coast, but in 2007 the state’s share was sold to a private company named Geysir Green Energy (GGE). Following laws passed in 2008, regarding the separation of private energy production from competitive operations, the company became two different firms — HS Veitur and HS Orka — of which the latter takes care of energy production and sales. Bit by bit, GGE bought up two thirds of HS Orka’s shares. In 2009, GGE sold extra 10% to Magma Energy, which at the same time bought 32% from another energy company, Reykjavík Energy, and the nearby municipality of Hafnarfjörður. At this point GGE owned 55% of HS Orka and Magma owned 43%.

Harsh criticism arose over these deals which were effectively privatisation of Iceland’s natural resources, including a campaign led by pop-singer Björk and Eva Joly, the recent French Green Party presidential candidate, who at that point served as the Icelandic center-left government’s special financial advisor, following the general elections in 2009. Asked if the company was considering majority stake in HS Orka, Magma’s CEO Ross Beaty replied with a straight “no”. He then emphasised that the company would not buy more than 50% of the shares, as had officially been accepted by Iceland’s government, calling this “a rather awkward business position but certainly something that we feel can be workable.”

However, in 2010 Geysir Green Energy sold all their shares to Magma, which now owned 98.5% of HS Orka. A year later Magma sold 25% to Jarðvarmi slhf, a company owned by fourteen Icelandic pension funds, which a little later bought additional 8.4%. At last, Magma bought the 1.5% still owned by four different municipalities. Thus Magma holds 66.6% of the shares today, while Jarðvarmi owns 33.4%. The land use rights held by Magma allow for 65 years exploitation with an option to extend this for another 65 years.

Alterra Power

Just as the name could not have been coloured with more controversy and scepticism, Magma Energy merged with Plutonic Power and became Alterra Power, a company traded on the Toronto Stock Exchange. The new company’s Executive Chairman Ross Beaty, said that the merger would “strengthen both companies and […] create a larger, more diversified renewable energy company.” He further stated: “Geothermal will remain a core focus of the new company, but hydro, wind and solar assets will be solid business platforms for future growth. In the renewable energy business, bigger is better and this combination will achieve that while enhancing returns to each company’s shareholders.”

Alterra Power already operates geothermal, hydro and wind power plants in Nevada and British Columbia, which together with the Iceland plants have the energy capacity of 570 MW. In the company’s own words, they have a “strong financial capacity to support [their] aggressive growth plans,” which include geothermal plants in Chile and Peru. Such Latin-American adventures are certainly not new to the company’s key people, as Ross Beaty founded and currently serves as Chairman of one of the world’s largest silver producers, Pan American Silver, with some of its mines in Peru.

For the last three decades in fact Beaty has founded and divested a series of mineral resource companies, but has now shifted his focus to the ever-enlarging economy of ‘green energy’. As he explained himself: “This time around I wanted to build something green, so I looked at geothermal and it was just perfect, it just fit”. When confronted with the possibility that he and his company were taking advantage of Iceland’s economic collapse — a theory supported by the words of John Perkins, the author of ‘Confessions of an Economic Hitman’ — he called such ideas “ignorance and complete nonsense.” Only a few months later, he nevertheless said to Hera Research Monthly, an online investment newsletter, that “going into Iceland was strictly something that could only have happened because Iceland had a calamitous financial meltdown in 2008.”

Norðurál

Norðurál is a subsidiary of North-American aluminium producer Century Aluminum, whose largest shareholder is commodity broker Glencore International, a company that controls almost 40% of the global aluminium market. Glencore is mostly known for its many tentacles of corruption and worldwide human rights and environmental violations — most recently manifested in the exposure of child-labour in the company’s copper mines in the Democratic Republic of Congo, as well as the dumping of acid into a river at another site in the same country.

Norðurál currently operates an aluminium smelter in Hvalfjörður, which was fully built in 1998 despite harsh opposition by the fjord’s inhabitants. The smelter has been enlarged in a few phases, seeing the production capacity going from the original 60 thousand tons per year, to the current 278 thousand tons. Since 2004, the company has invested 20 billion ISK into building another Iceland smelter, in Helguvík on the north-west tip of the Reykjanes peninsula. According to the project’s Environmental Impact Assessment (EIA), the smelter is supposed to be powered solely by the peninsula’s geothermal energy — a claim that environmentalists and geologists have seriously questioned.

In April 2007, HS Orka signed a contract with Norðurál, promising the latter company 150 MW of energy for the Helguvík smelter’s first phase, supposed to be extracted by the planned expansion of the Reykjanesvirkjun geothermal power plant. Three years later, when no energy had been made available, the aluminium company filed charges against HS Orka for non-compliance. The conflict ended up in an arbitration court in Sweden, the registered home country of HS Orka’s owner, Magma Energy Sweden. Officially the conflict was presented to the public as a matter of energy prices but in late 2011 the court ruled that HS Orka is obliged to provide Norðurál the originally agreed-upon energy, suggesting that the conflict had to do with more than prices.

Already Existing Power Plants

Reykjanes

Reykjanesvirkjun is a 100 MW plant, owned by Alterra Power, whose energy partly powers Norðurál’s smelter in Hvalfjörður. It is located on 410 hectares of land located at the south-west tip of the peninsula. The company has plans for at least an 80 MW expansion of the plant, which is supposed to take place in two 50 and 30 MW phases, that according to HS Orka should both be completed in 2013.

However, following conditions set by Iceland’s National Energy Authority (NEA) last year, the expansion plans have become a bit more complicated. In order for it to happen, at least 30 out of the 50 MW included in the first phase have to come from another area than currently planned. Further extraction in the already exploited area would simply be unsustainable and decrease the area’s capacity. Geologist Sigmundur Einarsson actually believes that the field is already over-exploited. His claim is based on studies from 2009, by the very same NEA, which state that the area’s long-term sustainable production capacity is hardly more than 25 MW.

Svartsengi

The Svartsengi plant is operated by HS Orka and is located on 150 hectares of land owned partly by the municipality of Grindavík and partly privately. Next to it stands the Blue Lagoon, a tourist attraction created by the brine pollution from the power plant. The plant is a combined electricity and heat plant with a current electric power capacity of 75 MW, of which most goes to Norðurál’s smelter in Hvalfjörður.

The Threatened Areas

Eldvörp

The Master Plan gives a green light for the exploitation of Eldvörp, a 15 km long row of craters, located four km south-west of Svartsengi. Svartsengi and Eldvörp are thought to share a geothermal aquifer, which many claim to be fully exploited already. Thus even the smallest energy production would be unsustainable. Alterra Power still has plans to build a 50 MW power plant in Eldvörp, for which both research and utilization leaves have been granted. The planned plant is on land owned by the municipality of Grindavík, which apparently is about to finish the required land use plan enabling the project to take place.

The geothermal field is situated at the heart of the row of craters. There are only a few signs of geothermal activity on the actual surface, only fumaroles the lavafield and steam wisps when the weather is mild. One single borehole has already been constructed close to one of the craters at the centre of Eldvörp. It’s environmental impact is very limited compared with the impacts of the planned over-all drilling and the appendant pipelines, power lines, roads, powerhouse separator building. Such construction will have enormously destructive impacts on both natural and cultural relics in the area, including the row of craters and the Sundvörðuhraun lavafield.

Stóra-Sandvík

Stóra-Sandvík is a unique geothermal field in a coastal area close to the municipalities of Grindavík and Hafnir, as well as to the Reykjanesvirkjun plant, which in itself should be reason enough to move it from the exploitation category and instead to protection.

Krýsuvík

This geothermal area consists of four subfields — Sandfell, Trölladyngja, Sveifluháls and Austurengjar — which all connect to the same volcanic system, usually just named Krýsuvík. The geothermal activity is located at the margins of the system’s fissure swarms, while the Núpshliðarháls tuff ridge lies closer to its centre, with thousands of years old lava flats and eruptive fissures on both sides. Where the tuff has tightened due to geothermal transformations, small streams flow on to the lavafields and have thus created vegetated areas such as Höskuldsvellir, Selsvellir, Vigdísarvellir and Tjarnarvellir. As from the west of Hellisheiði, hardly any water runs on the surface of the whole Reykjanes mountain range, save the above-mentioned areas of Krýsuvík.

Interestingly, Krýsuvík is directly linked to what many consider to be the origins of environmentalism in Iceland. A geologist and environmentalist named Sigurður Þórarinsson, who had often voiced his concerns regarding Icelanders’ treatment of the country’s natural environment, had become seriously alarmed by what he witnessed by the Grænavatn maar in Krýsvík. It was, Sigurður said, used as a trash can for construction projects in the nearby area. At a meeting at the Icelandic Ecological Society in 1949, Sigurður suggested the creation of a legislation regarding nature conservation. Shortly afterwards, he was asked to take part in designing the legislation, which was passed in 1956 — the first in Iceland’s history. (Read about Sigurður Þórarinsson here.)

Out of the four Krýsuvík areas, the Energy Master Plan allows for the exploitation of Sandfell and Sveifluháls, while Trölladyngja and Austurengjar are supposed to be pending until the results of drilling in the two former areas are known. The National Energy Authority claims that these combined 89 km² of land should have the production capacity of 445 MW of energy for 50 years, and as such be Iceland’s third most powerful geothermal field after the Hengill and Törfajökull areas. However, independent scientists and environmentalists have seriously questioned these figures, believing the area’s maximum possible production capacity to be 120 MW for 50 years.

Sandfell

Sandfell area is a semi-unspoiled volcanic area of lavafields and tuff mountains, large vegetated flatlands, and beautifully formed craters. It is a uniquely colourful area, which will be permanently altered if HS Orka’s planned 50 MW power plant will be built. The company has already been granted permission for test drilling and one borehole has been test-drilled, but no results have yet been published.

Sveifluháls (Krýsuvík)

Sveifluháls is a 20 km broad and 150 to 200 meter high compounded and mostly non-vegetated tuff ridge. The 2-3 km long geothermal area of fumaroles, mud springs and muddy hot springs — usually referred to as simply ‘the Krýsuvík geothermal area’ — lies a little east of the Krýsuvík fissure swarm. Despite drilling done in the second half of the 20th century, the area is relatively unspoiled and could easily be brought back close to its natural state. Due to the tuff transformation, the area is especially rich in colour and contains unusual geothermal salt deposits and gypsum. The area is unique due to its many maars, for instance Arnarvatn and Grænavatn (pictured above), of which some show signs of Holocene volcanic activity. Sveifluháls is a popular stopover as well as an outside school-room for geology. It also contains historical relics of human residence, as far back as Iceland’s original settlement.

There are plans to operate a 50-100 MW power plant in the area — a construction that would include somewhere between 10 and 20 boreholes, road construction, pipelines and power lines to connect the plant to the national energy grid. HS Orka has a research leave in the area but has not been able to guarantee the utilization rights, which are owned by the municipality of Hafnarfjörður.

Austurengjar

The geothermal area of Austurengjar is about 1.5 km east of lake Grænavatn — a relatively flat and mostly unspoiled area of mud pots, hot springs and dolerite ridges, which slopes north to lake Kleifarvatn. As a result of earthquakes in 1924, the geyser activity increased dramatically and since then, Austurengjahver has been the area’s most powerful spring. This colourful geothermal area is special as it lies completely outside of Krýsuvík’s volcanic system and shows no signs of Holocene volcanic activity. The plans for a 50 MW power plant at Austurengjar, including 10 to 15 boreholes and a whole lot of power lines, would directly impact the whole area and change the face of lake Kleifarvatn, which is today a wild and unspoilt lake, surrounded by mountains.

Trölladyngja

Trölladyngja is one of the three mountains (the other two being Grænadyngja and Fífavallafjall) that together make up the north-east end of a 13 km long tuff ridge called Núpshlíðarháls, which lies within Krýsuvík’s volcanic system. The geothermal area is about three km long and seems to be partly connected to extension fractures in the system. South of the mountains, a small stream called Sogalækur has shovelled out a considerable amount of clay and thus formed a colourful canyon called Sogin. The stream deposited the clay into the lava below and formed the vegetated field Höskuldarvellir. HS Orka has for many years had plans to build a power plant in Trölladyngja and three holes have been drilled already, resulting in very limited success but a lot of disruption. The Trölladyngja area is partly included in the Natural Heritage Register.

Protected Area(s)

Brennisteinsfjöll

Only one out of the peninsula’s nine potential energy generating areas will be protected if the Master Plan goes through parliament unaltered. Brennisteinsfjöll are a row of mountains, considered an impenetrable part of the Krýsuvík area, and do in fact constitute the largest untouched wilderness around the capital area of Reykjavík. As highlighted by Krater and Rose: “Wilderness areas are becoming rare globally, with over 83 percent of the earth’s landmass directly affected by humans, and the Icelandic wilderness is one of the largest left in Europe.”

Possible Targets for Protests and Direct Actions

The Ministry of Environment
Skuggasund 1
150 Reykjavík

The Ministry of Industry
Arnarhváll by Lindargata
150 Reykjavík

HS Orka
Brekkustígur 36
260 Reykjanesbæ

Jarðvarmi slhf
Stórhöfða 31
110 Reykjavík

Norðurál Grundartangi ehf (smelter and offices)
Grundartangi
301 Akranes

Norðurál Helguvík ehf (only offices)
Stakksbraut 1
Garður
232 Reykjanesbæ

Helguvík Smelter
See location on map here.

Century Aluminum Company (Corporate Headquarters)
2511 Garden Road
Building A, Suite 200
Monterey,
CA 93940
USA

For a list of more offices and smelter click here.

Alterra Power Corp. (Corporate Offices)
600-888 Dunsmuir Street
Vancouver, BC
Canada V6C 3K4

For a list of more Alterra Power offices click here.

Glencore International

Registered Office
Queensway House
Hilgrove Street
St Helier
Jersey
JE1 1ES

Headquarters
Baarermattstrasse 3
P.O. Box 777
CH 6341 Baar
Switzerland

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Main Sources

Áhugahópur um verndun Jökulsánna í Skagafirði, Eldvötn – samtök um náttúruvernd í Skaftárhreppi, Félag um verndun hálendis Austurlands, Framtíðarlandið, Fuglavernd, Landvernd, Náttúruvaktin, Náttúruverndarsamtök Austurlands (NAUST), Náttúruverndarsamtök Íslands, Náttúruverndarsamtök Suðurlands, Náttúruverndarsamtök Suðvesturlands, Samtök um náttúruvernd á Norðurlandi (SUNN), Sól á Suðurlandi. Umsögn um drög að tillögu til þingsályktunar um áætlun um vernd og orkunýtingu landsvæða. 11. nóvember 2011. (Download PDF here.)

Krater and Miriam Rose on behalf of Saving Iceland, “Development of Iceland’s Geothermal Energy Potential for Aluminum Production — A Critical Analysis”. In: Abrahamsky, K. (ed.) Sparking a World-wide Energy Revolution: Social Struggles in the Transition to a Post-Petrol World. 2010, AK Press, Edinburgh. p. 319-333. (Download PDF here.)

Various information from Náttúrukortið (The Nature Map) on the website of environmentalist NGO Framtíðarlandið (The Future Land).

Sigmundur Einarsson, Hinar miklu orkulindir Íslands, Smugan.is, October 2009.

Sigmundur Einarsson, Er HS Orka í krísu í Krýsuvík?, Smugan.is, November 2009.

Sigmundur Einarsson, Ómerkilegur útúrsnúningur iðnaðarráðherra, Smugan.is, November 2011.

Sigmundur Einarsson, Er HS Orka á heljarþröm?, Smugan.is, December 2011.

Catharine Fulton, Blame Canada? Geothermal energy, Swedish shelf companies and the privatisation of Iceland, The Reykjavík Grapevine, October 2009.

Catharine Fulton, Magma Energy Lied to Us, The Reykjavík Grapevine, May 2010.

Volcano Park to Open in Iceland? Iceland Review, July 2007.

Various information from the websites of Alterra Power, HS Orka and Norðurál.

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

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%.

By Anna Andersen, photos by Alísa Kalyanova. Originally published in The Reykjavík Grapevine.

Overrun by Viking ambition, Reykjavík Energy built headquarters fit for Darth Vader, expanded ambitiously, dabbled in tiger prawn farming and flax seed production, went into the fibre optics business, invested in a new geothermal plant, speculated in places like Djibouti, and finally managed to run itself so completely into the ground that foreign investors will no longer offer the company loans.

In hopes of rescuing its multi-utility service company from the depths of abyss, the city of Reykjavík stepped in this March with a 12 billion ISK (105 million USD) loan, which is nearly its entire reserve fund set aside for the company, but still only a fraction of the company’s massive foreign debt of 200 billion ISK (1.7 billion USD).

With thousands of captive lifetime subscribers and a means of producing energy at very little cost, the company had all the makings of a cash cow. So what happened to Reykjavík Energy, an entity that less than a decade ago was a perfectly viable, municipally owned company providing the city with basic utilities: cold water, hot water and electricity? Read More

Dozens of Icelandic companies and institutions, all directly connected to the heavy industrialization of Iceland, have established a co-operating forum concerning the development of the so-called “Icelandic geothermal cluster”. The forum, which was formally established yesterday, June 28th, is originally a conception by Dr. Michael Porter, professor at Harvard Business School and known as “a leading authority on company strategy and the competitiveness of nations and regions.” Interviewed by a news-report TV show Kastljós, Porter, who was in Iceland to take part in the forum’s formal establishment, said that Icelanders are “too cautious” when it comes to “using the opportunities that consist in geothermal energy and the nation’s expertise on the issue.” Contrary to Porter, environmentalists and Iceland’s National Energy Authority fear the overexploitation of geothermal resources. Read More

The Public Health Authority of Reykjavík is highly critical of the recently published preliminary Environmental Impact Assessment (EIA) for a 45 MW construction of geothermal power plants at Gráuhnjúkar on Hellisheiði. The reason is that the EIA, carried out by engineering firm Mannvit, hardly mentions the possible effects of the project’s sulphur pollution on the human population living in the capital area of Reykjavík. “They mention the impacts of increased amount of hydrogen sulphide at the power plant area, but hardly mention the capital area where a high proportion of the population lives” said Árný Sigurðardóttir from the Public Health Authority in an interview with newspaper Fréttablaðið. The power plant in Hellisheiði is only about 30 km away from Reykjavík.

Since October 2006 Orkuveita Reykjavíkur (Reykjavík Energy) has produced geothermal energy on Hellisheiði, predominantly for the Norðurál/Century aluminium smelter in Grundartangi, Hvalfjörður. Since then increased sulphur pollution in the power plant’s surrounding area, as well as in the area around Reykjavík, has regularly become a topic of discussion and Sigurðardóttir says that the pollution’s impacts are systematically underestimated. Instead of using recent researches into the issue, Mannvit bases the EIA on prediction-models, but new studies by the University of Reykjavík indicate that the increased use of medicine for asthma and heart disease angina pectoris is directly linked to increased sulphur pollution. Read More