My latest post on the THINK platform, about the aluminium industry in Iceland:
As anyone following these posts will know, Iceland is a country blessed with vast amounts of “green” energy. The fact that it is also cheap makes it enormously attractive to multinationals in heavy, energy-intensive industries. This applies especially to the aluminium industry.
Iceland currently has three large aluminium smelters. There are two more smelters on the drawing board. One of the existing three – owned by Alcan-Rio Tinto – is now seeking to expand. It was already thwarted in its plans once, when the municipality in which it is situated [Hafnarfjörður, on the outskirts of Reykjavík] voted down the expansion by a teeny-tiny margin. Last fall, however, in the midst of Iceland’s economic meltdown, when the country was at its most vulnerable, Alcan resurrected its campaign for the expansion, sending people door-to-door asking Hafnarfjördur residents to sign a petition for a new referendum. Gripped by fear about their economic future, people signed, and another referendum is now imminent.
Read the rest of the post here.
WE HAVE A STORM BREWING
Wind is already picking up outside. Whooo, funtimes. Right now 8°C [42F], sunrise was at 9.45, sunset at 4:36 pm.
{ 27 comments… read them below or add one }
Good article.
Do you know if anyone has detailed exactly who stands to gain and lose due these aluminum smelters?
I mean like an accountants ledger, a plus side for the jobs directly created, how many of these of course, and to whom, also the overall economic benefit to certain segments of the Icelandic economy, and what these are. On the negative, how much the overall Icelandic nation and people have to pay these aluminum smelters in various subsidies, the economic cost of any environmental destruction, and the possible loss from other businesses deprived, such as greenhouse growers shorted on electricity costs.
You might notice I mentioned nothing about plain old environmental harm, or the well being of the people, although this obviously an important factor. But I would be curious if such projects even pencil out on the plus side for the Icelandic people, or perhaps just a very few taking everyone else for an expensive ride?
I’m real in love of your country; in the last 10 years I follow your politic and econimic decisions because I return in Iceland one / two times each year to visit my friends and to explore every single corner of your “paradise”.
during my last travel in june, I’m sorely disappointed to discover the situation of new Hafnarfjiordur constructions just in front of the sea…and also the wrong decision to expanded the Alcan smelter!!!
maybe your people don’t travel so much to understand the big different of environment and social situation on this planet…. Iceland is most beautiful environmental heritage of our planet. “we” all together need icelanders protect their own country!! why, why icelanders don’t stop alumiun policy and CONVERGE in the same preservation direction???? ok to use your green energy for green utilizations….but what sense you have to use green energy to produce only a pollution effetc????
vincent.
The fact that they voted down the expansion by a teeny-tiny margin says it all. An itsy-bitsy-teeny-weeny margin implies that almost as many folks were in favor as not. You may not like this method so you might want to suggest another system that would be more apropos.
Re: weather
Sunrise looked interesting… http://forums.icelandweatherreport.com/viewtopic.php?p=1111#p1111
Thanks, all.
Iðunn – bizarrely (or not) there is an enormous amount of secrecy surrounding the aluminium industry, therefore it is very difficult to make such an assessment. As an example, the price of the energy sold to aluminium multinationals is very low – this we know – but nobody knows just how low because it is TOP SECRET. — This is something I’m going to address in another post.
Alexander – gorgeous!!
Don´t expect to get a realistic price for aluminum smelter electricity as long as you have the Keystone Cops running the show at Landsvirkjun and OR. It’s folks with a mindset like Valgerður Sverrisdóttir that are responsible for bringing in these folks to begin with. I once owned a parakeet that would probably score higher on an IQ test then would this woman. Here is a little of what she had to say a few years back:
http://www.grapevine.is/Home/ReadArticle/Is-the-State-Owned-Journalist-Truly-State-Owned
With aluminium smelters located in places such as Iceland producing far less CO2 emissions than if located elsewhere, the choice between helping the global environment and preserving the local environment is a tough one. Such projects may one day become eligible for receiving carbon offset funding, so perhaps Iceland could be compensated for helping reduce global emissions.
By contrast, the British government is currently justifying building several new nuclear power plants on green grounds that they will produce far less CO2 emissions than burning fossil fuels. Here, the local environment is apparently losing to the global environment.
Not that the politics of Iceland (or anywhere in the world) aren’t important…. but… I miss … My Iceland, and stories about Polly, the hiking trips, and the ordinary stuff of daily living in Iceland, the parts that make Iceland culturally unique.
And the weather. I know it’s still there but nowdays it seems mostly just an afterthought and unimportant. Alexander’s photos have been a lovely addition.
Not intended to criticize… just more like wishful thinking…
Karen
Karen – sometimes I do too. I guess things evolve, change … going back does not seem possible now, as we Icelanders have lost our innocence, so to speak. As for the weather — I admit, it’s become a chore to do it and I am considering abandoning it altogether.
Alda, Please do not abandon the weather report. It’s a great consistency, and, besides, it is the name of your blog.
After reading your blog for 10 months and finally having good work again myself (after nine months of no income–we have our own economic crisis in the U.S.), I have sent you a donation. I want you to know I appreciate your thoughtful accounts of all of it–the politics, the environment, the fun stuff, the weather, the humor–and I hope you will continue to share your insights. Studying the meltdown of Iceland has helped me understand the meltdown of the larger economies, and how much is at stake everywhere. And I have really come to care about what happens to Iceland and Icelanders. In your blog and in the news reports (what I can make of them without knowing the language), I recognize the villains and the heroes and the duplicitous ones. I am rooting for the good to prevail.
“As for the weather — I admit, it’s become a chore to do it and I am considering abandoning it altogether”
No… That would be like The Sun abandoning Page Three.
Any chance of tying smelter expansion to other industry growth? I’m thinking of aluminum products for export and domestic use. By rights the cheapest prices for billet or whatever the smelters produce should be the lowest right there. I love my Ponnukokur pan but I would expect a lot more production of other items. High end car parts perhaps? A million other things.
As far as I know the employment numbers in a working smelter and the power plants that feed them is rather small. I want to open the door of a Porsche and see a “made in Iceland” label on the aluminum bits.
Let’s call this what it is: Dreamland II: We’ll Never Learn
Very good article, indeed.
Your description of the machinations of the aluminium industry is matching my impression of an interview in the latest print edition of Iceland Review with the CEO of Alcan Iceland Rannveig Rist. Set amidst reports about organic farming, sustainability and green energy under the headline “Iceland becoming green”, this interview appears like an spin of the aluminium industry to paint something green, which by now isn’t perceived as such. Particularly, as there is no different point of view given in the paper.
The arguments provided are, of course, all pro aluminium – it makes cars lighter, leading to lower fuel consumption, and it is used in devices like energy saving lightbulbs. All facts, which are not suiting this “green” image, are left out. No word about aluminium used for softdrink cans and candy wrappers, which is mostly not recycled. No word about Karáhnjukar. Nothing about the environmental problems caused by the smelters. No information about energy prices given, of course. And no mention of the dangers, Iceland is facing by becoming extremely dependent on the global aluminium market.
I wouldn’t expect anything else by the CEO of Alcan Iceland. After all, that’s, what she is being paid for. But it is surprising, to find such an interview in the context of “Iceland becoming green”. And those partial and biased views are replicated by politicians, like the mayor of Reykjanes (in an interview in the German TV), who should have the welfare of the Icelandic people in mind.
The most annoying thing in this interview with Rannveig Rist is the denigration of different opinions as prejudiced and ignoring the “facts” (i.e. the propaganda). According to Rannveig Rist, Icelanders should be taught and educated (i.e. brainwashed) in school and university about aluminium production.
So, you seem to count as ungrateful, obstinate, uneducated and rabble-rousing, if you don’t comply with the heavy industry policy.
Alda, I’m curious. Iceland does have a fairly unique resource of (potentially) green energy, assuming that it is not used to power a source of undue pollution of course. I’d tend to agree that aluminum factories are not the cleanest source of industry ever conceived, but I also think that some kind of heavy industry is necessary to support the standard of living enjoyed by western democracies (including Iceland). I also think that, given how small (comparatively speaking) Iceland’s population is–basically a decent sized U.S. or European city–that it wouldn’t take too many baseline industries to support a decent standard of living.
I’m not sure I agree that aluminum smelting is a transient benefit to Iceland’s economy. I think it’s a stable one that (if taxed properly) would provide a solid source of consistent income. At a potentially unattractive environmental cost, certainly, particularly if run poorly.
I haven’t heard much or come across much in the press about what would be a better/greener/more sustainable way to use Iceland’s energy resources to support a high standard of living. I’m curious what alternatives to economic development have been proposed that would provide comparable economic benefits without the environmental cost. Admittedly not as close to it as you, but what I have read (elsewhere) seems to largely be naysaying without providing alternatives. Have you run across anything that struck you as a sound economic alternative?
And don’t give up on the weather.
Apart from the fact, that I am genuinely interested in what the weather is like in Reykjavik, it’s part of the folklore of this blog, which must not be abandoned.
Jeffrey – Iceland already has three large smelters, which is plenty to provide the sort of stability you describe. No one wants to oust those smelters – we (those of us concerned about the environment) just don’t want any more. And sadly, the way the industry has been managed by the current government is an abomination, i.e. I don’t think that the sensible tax you speak of is even a consideration. The previous governments of Iceland have pimped this country’s resources to such an extent that they’re practically giving them away (or so we think- of course we don’t know).
There are plenty of alternative industries that could – and should- be built up here. In terms of industry, there is the possibility of data farms, for example. But what Iceland should be nurturing is the various possibilities inherent in exporting e.g. expertise in various fields where this country is a leader, e.g. the geothermal energy field, which is a growing sector worldwide. Iceland also has a number of amazing design and software companies, and the gaming industry is blossoming. CCP, for example, which operates the game EVE Online, employs 600 people and are hiring 180 more next year. These are sustainable industries, they don’t pollute, and they’re growing – all in contrast to aluminium. However, many of these fledgling companies have no support from the government — and with a little push they could be well on their way to creating real value for this country.
When Finland had its meltdown in the 1990s they focused on building up the design industry. Finland is now famous for its designs. Iceland should be looking for alternative ways to grow and thrive – not just putting all its eggs into the same basket all the time, because it’s the easy way out.
And as for the weather reports, everyone, here’s the moment of truth. Those weather reports are a total chore and, as Karen pointed out, I’m really very unenthusiastic about doing them. In fact, they sometimes put me off posting, because writing them makes the posting feel so much like work. I have to come up with something inventive so as not to repeat myself all the time (after five years!), I have to log on to this site and that to gather the temps, the sunrise/sunset times, etc. and frankly I’m totally bored with it. When I post on other sites – believe it or not, it feels very liberating not to be saddled with the weather report, because I can just write something I’m inspired to write, press publish, and we’re off. I really believe I would post more often if that weather report weren’t attached to the end.
So there you have it!
Jeffrey, there have been a number of ideas but they all require capital and that’s the rub. Smelters bring their own money but like all things like this the long term benefits are tiny. Look at poor countries with oil reserves.. and even rich ones like Canada, the U.S. owns it and only them and local crooks benefit in a real way. Data centres are a good idea but the money has dried up. The fibre lines are being laid but the conversion of the old military base has stopped last I checked. So watch out for the sharks, they have the opportunity now.
The smelters aren’t the worst offenders on the planet and for the planet are better if in Iceland. They just aren’t better for Iceland…
Joerg, agreed. We can’t call this The Iceland Weather Report if we don’t get Alda’s spin on the ever changing wind patterns. But if you’re interested in the actual weather you can load up a widget or doo dad like I do. I giggle everytime the weather there matches what it is on my side of the planet. we’re in that time of the year when it is typically dark, cold, wet, and windy. but wait 5 minutes and……
ok, my post has crossed with Alda’s so I seem redundant…
Here’s an idea, how about a widget with the actual and current weather? Perhaps add a random phrase widget underneath it? Spend some time during a wind storm to fill it with clever Aldanisms and maybe a bag full of lines that your loyal users would gladly contribute. Might not be as timely (‘cept for the actual forecast) but a lot less work long term.
Re: weather
Weather report reporting could go to forum I think.
Sunrise and sun set can be read by those interested at
http://www.timeanddate.com/worldclock/astronomy.html?n=211
weather at http://en.vedur.is/weather/forecasts/areas/
Re: environment
I’m not sure about design but main revenue comes from Finish industry. That’s for sure.
Keeping in mind that all of us can’t design only but someone must produce something to eat, wear, drive, fly, live in, blog (it requires hell a lot of very “dirty” production of all kinds of electronics) etc the question
To be or not to bestill here – “Who will do the dirty work?”Vikingisson. As soon as krona drops to 400 per euro – all world manufactures will move their plants to Iceland (as cheap labor place). So you don’t have to wait long for this to happen…
And now we know what kind of “eco-friend” you are (4 or 5 liters 6- or 8-cylinder engines…yeah!)
Per the weather, how about something more automated? I really enjoy your weather reports, as obviously do a good many others. But I’ve noticed any number of newspapers which offer such information, with the guess much of it streams in from elsewhere. Establishing something like that might take certain skills, but once in place more or less take care of itself.
All of which leaving you to focus on what you like, and at times that might even include commenting on the lovely weather.
As idunn says, automate it. There is already an official weather report in English:
http://en.vedur.is/
Todays:
Forecast: Northeast wind, 8 to 15 m/s, but 15 to 23 in the southeast by afternoon. Some rain or sleet in the east and by the northwestcoast, but mostly dry elsewhere. Temperature 1-8 deg. C, mildest in the south. North 10-18 tomorrow, but 18-23 in the southeast. Widely sleet or snow in the north and east and getting colder.
Actually, it is not so much the weather data, which I can surely find on many sites on the net – like vedur.is – but I appreciate the report on the personal experience of the weather.
But if this is keeping you away from posting more, you might indeed use a widget and maybe just comment on the occasional storm/snowfall/heatwave.
ah Alexander, notice that I only wanted to *look* at the ‘hecho en Iceland’ label, not drive it. My 4 cylinders are plenty. And I’ve survived years just fine without a cell phone, cable tv, and other non essentials. I drive 1/2 the local average. Been rather eco green with little effort. but must have internet….
But that’s one of the problems with our current structure. The more that the culture consumes whether they need it or not is our measure of national wealth. I think we could do just fine with a reasonable amount of consumption. The future investment is best done by all of us rather than the few moguls that end up with it all and spread the propaganda about what we need to do and how well we’re doing.
Iceland could have a profitable aluminum manufacturing industry without depending on a cheap labour force. Cheap resources, you have lots of steam and because of that you also have a local source of aluminum. Makes little sense to ship the ore around the world to get at the cheap power and then back again for the cheap labour to turn it into widgets that come back one more time to be consumed by the wealthy. Fight the expansion but use what is already there, there should be plenty for everyone if the moguls weren’t in total control.
Hey everybody the weather has been cancelled in Iceland from Today,
“Iceland Weather ?, yea we used to do it like international banking but we just dont go there no more”.
Its has been informative for me anyway as before I became interested in Iceland I had a mental picture of Iceland that was the same as Greenland every house with a team of Huskies tied up outside,drilling holes in the ice to fish and the odd igloo, Imagine my surprise when I saw the first pictures of Reykjavik traffic lights,restaurants,shops and even a McDonald’s chain positively civilized ,quite interesting that the temperature climbs above -30 celsius every so often. you live and learn I suppose !!!
weather…. ‘there’s an app for that’
right now my local weather is very close to Reyk’s but less windy.
eww, someone said McDonald’s. Thankfully the kreppa did one good thing and killed that icon of death.
well, on with the butter!