Saving Iceland

Magma Energy, a Canadian company, wants to buy a majority share in H.S. Orka, a geothermal energy company based on the Reykjanes peninsula. In July this year Magma Energy bought a 11% share in H.S. Orka from Geysir Green Energy (GGE) and therefor became the first foreign shareholder in an Icelandic energy company. The purchase was a part of a bigger agreement between Reykjanesbær and GGE, which resulted in GGE owning a little more than 50% of H.S. Orka. Around the purchase, Ross Beaty, Magma’s director stated that the company did not plan to become predominant in H.S. Orka or meddle with the management of the company’s power plants.

In the middle of August, Orkuveita Reykjavíkur (O.R. – e. Reykjavík Energy) decided to start discussion with Magma Energy about the latter’s purchase of O.R.’s share in H.S. Orka, which is 32% and would therefor give Magma 43% share in the company and the possibility of increasing it 5%. Magma has bought the very small shares of the communities of Sandgerði and Hafnarfjörður, and has been discussing with communities like Vogar and Grindavík about buying their shares as well. If everything goes like planned, H.S. Orka, which e.g. is the biggest energy provider for the Century Aluminum’s planned smelter in Helguvík, will mostly be owned by to private companies; Magma and GGE, which will own c.a. half of the shares each. Read More

John Perkins, the author of The Confessions of an Economic Hitman, is currently in Iceland. Perkins is here to be at the premier screening of The Dreamland, a documentary based on Andri Snær Magnason’s book, also titled The Dreamland. Last Sunday, Perkins was interviewed in a political TV show on RÚV (the state television station) where he spoke about the threat of Icelandic resources being sold to foreign corporations and advised Icelandic authorities not to collaborate with the International Monetary Fund (IMF).

Perkins used to work for the U.S. National Security Agency and his job included “to convince poor countries to accept enormous development loans – and to make sure that such projects were contracted to U.S. companies,” as says on the back cover of his book. Perkins states that Iceland is the first ‘developed’ country in the world to be hit by the ‘Economic Hitmen’, referring to the invasion of the aluminium industry in Iceland. Read More

The directors of Reykjavík Energy (OR) and Hitaveita Suðurnesja (HS) have both said that the companies are not able to supply all the necessary energy that Century Aluminium needs fo it’s planned aluminium smelter in Helguvík, in the next 7 years, even though 6 new power plants would be built. At least 200 MW would be needed, which is the amount of energy that could be produced by building power plants in Bitra (geothermal field) and in Urriðafoss waterfall (in Þjórsá river).

Össur Skarphéðinsson, minister of industry has on behalf of the Icelandic government, given Norðurál (Century Aluminium) the permission to build up to 360 thousand ton aluminium smelter in Helguvík, which would produce double the amount Rio Tinto Alcan’s smelter in Hafnarfjörður produces. But where does all the necessary energy – 625 MW – come from?

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

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

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