Saving Iceland

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.

On the twenty-fourth anniversary of a disaster which saw a British water-reserve accidentally poisoned with aluminium—eventually killing at least one person—The Telegraph considers how aluminium affects our day-to-day health, now that the metal is used in most household and medical products we consume.

With aluminium known to be such a poisonous metal, a serious investigation into the effects of aluminium production on the health of smelter workers and nearby communities is surely badly needed.

Read More

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

A special report for Saving Iceland by Dónal O’Driscoll

Preface

Glencore are the majority shareholder of Century, the owner of one operational and one half-built smelter in Iceland, it’s key operations for aluminium smelting. But who are Glencore and what are the implications for Iceland? This comprehensive article profiles the world’s biggest commodity broker, who’s only comparable predecessor was Enron. The profile covers the reach and grip of Glencore’s domination of metal, grain, coal and bio-oils markets, allowing it to set prices which profit very few and are detrimental to many. It shows the tight web of connections between the major mining companies and Glencore through shared board history and shared ownership of assets, cataloguing key shareholders (and board members) who’s stakes make them larger shareholders than institutional investors in ownership of Glencore. These connections include Rusal’s co chair Nathaniel Rothschild, a financier with a $40m investment in Glencore, and a personal friend of Peter Mandelson (former EU trade commissioner and British politician) and George Osborne (UK Chancellor).

The article details the human rights and environmental abuses of Glencore at it’s many operations, including the 2009 killing of Mayan indigenous leader Adolfo Ich Chamán who spoke out about Century’s activities in Guatemala under CEO-ship of Peter Jones (still a Century board member). It claims that Glencore is higher than most in the running for most abusive and environmentally detrimental mining company, going where lesser devils fear to tread – trading with Congo, Central Asia and embargoed countries such as Saddam Hussein’s Iraq and apartheid South Africa. Glencore founder Marc Rich was involved in trading embargoed Iranian oil, and fled the United States in 1983 accused of insider dealing and tax dodging over Iranian deals, becoming one of the 10 fugitives most wanted by the FBI, until he was pardoned by Bill Clinton. Glencore is still run by two of his main men. Read More

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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

Grapevine.is

A sheep farmer, noticing bone deformities in the skulls of some sheep, believes they may be connected to an environmental accident at an aluminium smelter in 2006, and is calling for an investigation.

Sigurbjörn Hjaltason, a sheep farmer from Kiðafell, told DV that he had noticed quite a number of sheep in his area having difficulty eating, with some dying of starvation as a result. On examining the skulls of the animals, he discovered unusually large swelling of the jaw bones.

This, he believes, is the result of pollution from an aluminium smelter at nearby Grundartangi. In 2006, an accident at the plant caused fluorine to be released into the environment.

Fluorine, which is also present in volcanic ash, when ingested by animals can cause freakish growths in the bones. Sheep that would eat grass that had been covered in volcanic ash would often times grow unnaturally large teeth that prevented them from being able to eat any food at all, resulting in starvation.

The conclusion of the Environmental Office at the time of the accident was the fluorine levels in the surrounding area had doubled.

Sigurbjörn has called for a full investigation, and wants an independent team of scientists to examine the teeth and bones of the sheep that have died.

See also:

More Flouride in Animals Around Aluminium Factories than Elsewhere – Environmental Agency Refuses to Investigate

Pollution from Smelters Damages Teeth in Sheep

 

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

In the video above, Indian author Arundhati Roy talks about her recently published book, Broken Republic: Three Essays, and how the Indian government is, along with international mining corporations, violating the indigenous of India, destroying their lands and displacing them, leading to a constantly increasing gap between the rich and the poor. One of the book’s essays, titled “Mr Chidambaram’s War”, focuses on the Dongria Kondh tribe in Odisha, who have fought against Vedanta’s and ALCAN’s bauxite mining for aluminium production over the last decades.

The following text explains Broken Republic’s content briefly:

War has spread from the borders of India to the forests in the very heart of the country. Combining brilliant analysis and reportage by one of India’s iconic writers, Broken Republic examines the nature of progress and development in the emerging global superpower, and asks fundamental questions about modern civilization itself.