Reykjavík Grapevine - 06.08.2004, Side 17

WHAT IS THE
IMMEDIATE
ENVIRONMENTAL
IMPACT?
The main environmental impacts are on soil, vegetation, wildlife
and landscape. The Hálslón reservoir will submerge an area of
57sqkm and diverting the rivers will impact an area of a further
2,900 sq. km, 3% of Iceland’s land area. Dimmugljúfur, one
of the country’s longest and most spectacular canyons, will be
partially flooded. About 60 waterfalls and invaluable features
will disappear in the reservoir or will be spoilt by river diver-
sions. 35 rare moss and lichen species will be affected, two of
which are globally threatened. The reservoir will flood an area
of vegetation which is used by migratory pink footed geese and
reindeer for grazing and breeding. It is feared that the change
will mean a local extinction of the reindeer. Below the dam, the
decrease in sand carried down to the sea will cause the erosion
of the shoreline, where harbour seals and nesting grounds for
migratory birds will be affected. These hydrological changes will
also have an impact on salmon, trout and char.
WHAT ARE THE
FINANCIAL CONCERNS?
The electricity generated by the scheme has no domestic use for
the Icelandic taxpayer who, through the US$ 1.1 billion worth
of loans secured by the government, will be ultimately under-
writing the cost of the project. Landsvirkjun and the Minister of
Industry and Commerce, Valgerður Sverrisdóttir, are confident
that the project can enjoy long term profitability. Independent
research, however, has shown that at best the project is capable
of breaking even. If interest rates increase, the price of alu-
minium falls, and the króna remains strong (all of which are
projected), then the project will lose over $30 million a year,
a loss that will ultimately be met by the already overburdened
Icelandic taxpayer. If this happens, then the country will be ef-
fectively subsidising Alcoa and will have incurred huge overseas
debt for a loss making project.
WHAT ARE THE
ENVIRONMENTAL
CONCERNS?
Beyond the immediate environmental impact of building the
dam and creating the reservoir, there are deep rooted concerns
about the long term impacts of the project. The level of the
reservoir will rise and fall by 20 metres or more meaning that
on a large area mud and silt will be exposed on the banks during
the low water periods. As the mud dries, the strong and frequent
winds prevalent in the areas will pick up and scatter material,
like talcum powder, over the surrounding countryside, damaging
vegetation and habitats and causing further erosion, which could
ultimately lead to a “Dust Bowl”.
The aluminium smelter will emit 3,900 tonnes of sulphur diox-
ide into the atmosphere per year. This equates to an emission of
12kg/ton, whereas the United States Environmental Protection
Agency allows only 8kg/ton and the WHO guidelines for Eu-
rope define a limit of 5kg/ton. This is in addition to high levels
of fluoride and other gasses.
The dam is built close to one of the most volcanically active
and unstable areas of the earth’s surface. The Vatnajökull glacier
is reducing in size due to climate change and as a result, the
earth’s crust is uplifted by between 1 and 2 cm per year, which
could cause fracturing beneath the dam in years to come with
disastrous results.
K ÁRAH NJ ÚKA