Saving Iceland

 

With the growing awareness of climate change, carbon emission restrictions may not be too far off. Because countries that pollute the most may well get the heaviest restrictions, rather than seeking to reduce their emissions many industrial corporations are looking to move operations abroad.
Iceland, despite modern European levels of education, welfare and wealth, has almost no heavy industry. Their carbon rations will be up for grabs. Seeing the extra pollution coming, in 2001 Iceland got a 10% increase on the CO2 limits imposed by the Kyoto treaty. The problem is that the lack of heavy industry means a lack of the major power supply needed for such things. But Iceland has glacial rivers in vast areas unpopulated by humans; land for hydroelectric dams that can be seen as carbon-neutral. Read More

Iceland Review
08/18/2005

In its Tuesday daily bulletin, KB-bank says that the benefit that Iceland derives from aluminium smelters is small. The bank supports this view by claiming that the electricity is sold at close to cost and the rate of return for hydroelectric dams is low. It also says that the economical impact is overstated in the local discourse.

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Saving Iceland

Reykjavík

We who have been protesting against heavy industry and the devastating destruction of Iceland’s natural environment at Kárahnjúkar in the Eastern highlands of Iceland and in other parts of the country in recent months would like to take the opportunity to make the following statement:

During our protests we have used methods which may not have a long tradition in Iceland but which do not constitute a breach of the law. We are a broad-based group of Icelanders and people of many other nationalities united by our respect for the natural environment and our intolerance of repression, the misuse of power and the violation of human rights. Read More

Answers to common questions about the ‘skyr action’ at Hotel Nordica 14 June, 2005.

 

Why this conference?

* It was a conference for aluminium and the related industry leaders from all over the world.

* They were here because they think Iceland is right for heavy industrial development. Ironically, this is down to its clean environmental record.

* The people gathered there were key decision makers, financiers and policy drivers behind the Karahnjukar project and other heavy industry developments across Iceland which we oppose.

* A session entitled “An Approach to Sustainability for a Greenfield Aluminium Smelter” started at 11:45 on the day. Hosted by Joe Wahba of Bechtel Corporation and T.M. Sigurdsson of Alcoa, the outrageous hypocrisy of the seminar was extremely provocative to those who truly aspire to the ecological value of sustainability. Read More

Whitewashing efforts by multinational vandals Bechtel and Alcoa were thwarted when environmentalists decided to Greenwash THEM instead.

Update: Paul Gill was released Saturday morning. He is to be detained in the country for two weeks and has to report twice a day to the police station in Reykjavik, which is unprecedented!

Delegates at the 10th World Aluminium Conference on Tuesday 14th June in Reykjavik were happily nodding and snoozing their way through a hypocritical sermon enjoying the oxymoronic title ‘An Approach to Sustainability For A Greenfield Aluminium Smelter’ when they suddenly found themselves rudely awoken by a group of protesters who ran in and drenched the speakers – industry fat cats Joe Wahba (Bechtel) and Tomas Mar Sigurdsson (Alcoa)- in green skyr (a kind of Icelandic runny yoghurt). Numerous other delegates were also spattered with the stuff. Read More

In the 1930s, dust storms swept the southern plains of the United States. The “Black Blizzards,” as they were called, had come about because of overfarming, which had caused the topsoil to wear thin and become dust. Crops failed, and as the banks that held the mortgages realised they would not be getting returns on their interest, farmers were run off of their land. Their plight is immortalised in the songs of Woody Guthrie and John Steinbeck’s book “The Grapes of Wrath”, which went on to become a Hollywood film starring Henry Fonda as Steinbeck´s protagonist Tom Joad. Read More

Extract

Introduction

Landsvirkjun, the state-owned electric power company in Iceland has for some time been planning a large hydropower plant in the area north of Vatnajokull, Europe´s largest glacier in the east of Iceland. The facility would be built to produce electricity for a 390,000 ton aluminium smelter in Reydarfjördur on the east coast of Iceland.

Until recently a consortioum of Icelandic banks, pension funds and the Norwegian company Norsk Hydro planned to build and run the Reydarfjordur smelter, a prerequisite for initiating the Karahnjukar project. Early 2002 Norsk Hydro decided to postpone its final decision on the project. Subsequently the Icelandic government decided to seek other investors. In september Alcoa and the government signed an agreement to take up talks to build a 295,000 ton smelter in Reydarfjordur run on electric power from the Karahnjukar plant.

According to a previous study conducted for the Iceland Nature Conservation Association the Karahnjukar plant would not be financially viable when valued based on market rates of interest and return on equity expected for a comparable project. As a state owned company Landsvirkjun does however enjoy full financial backing from the state of Iceland and is able to borrow at sovereign rates. The Sumitomo Mitsui Banking Corporation prepared an assessment of Landsvirkjun´s plans in September 2001 confirming that the project could support the cost of capital demanded by Landsvirkjun based on Landsvirkjun´s estimate of future power prices.

There are considerable differences between the current and earlier plans. The size of the power plant is different as well as the expected investment. The buyer profile is different which no doubt has an effect on interest rates and the construction timeline for the Karahnjukar plant is considerably shorter according to the current plans.

This report aims to compare the financial characteristics of the earlier plans for the Karahnjukar plant with the current plans. This includes an analysis of buyer risk profile, estimate of probable power price based on current and forecasted aluminium prices and the constraints provided by the general cost structure in the aluminium industry.

Read the report here or on the original site

 

Mt. Snæfell and Eyjabakkar – Under severe threat by Alcoa and Landsvirkjun

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British MP Sue Doughty has tabled a Parliamentary motion calling on the British Government to use its diplomatic links with Iceland to persuade the Icelandic Government to terminate the building of a series of dams in the Icelandic Highlands.
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 http://www.indymedia.org.uk/en/2005/04/3…