The White Falcon - 22.04.1983, Side 1

Kef lavik NATO Base unique:
First with geothermal heat
The NATO Basest Keflavik istheonly Depart-
ment of Defense facility to be heated to a major
extent by geothermal energy. This represents
major savings to the taxpayer as well as environ-
mental protection.
The whole process starts at Svartsengi, an
area of intense subterranean heat near the
village of Grindavik a few miles east of Keflavik.
Wate.f, both fresh and from the sea, seeps down
to a geological fault where it is heated by
volcanic magma. Under tremendous pressure
this super-heated water is driven to the surface
at the geothermal plant.
As the hot water contains many corrosive
minerals it is used to warm fresh well water
through a heat transfer process. In turn the
heated well water is piped to the local commu-
nities—including the NATO Base.
Here on the base we cannot use the piped
water directly—it is too hot! So holding tanks
have been built which allow the water to be
cooled. Then, still 80 degrees C. (144 degrees F.)
hot, the geothermal energy is piped to our
homes, offices and hangers for all to enjoy.
Similar heating systems can be found in most
areas of Iceland. In Reykjavik, for instance, over
99% of the buildings are geothermally heated.
We are, however, unique as our system uses a
heat transfer process; other systems in Iceland
use hot water directly from the ground.
Iceland sits across a major geological fault,
the Atlantic Rift, and as such has a large popula-
tion of active volcanoes.
About 150 volcanoes are thought to have
erupted in Iceland since the settlement of the
country 1,100 years ago—some of them repeated-
ly. In recent history the average length of time
between eruptions has been five years. An
estimated one-third of the world’s production of
lava in the past 500 years has surfaced in
Iceland.
The extreme east and west of the country is
relatively free from volcanic activity while the
central belt—running roughly southwestto north-
east— has most of the action. Katla, on the south
coast, last erupted in 1918 causing great devasta-
tion. Hekla, a little to its north and west, last
caused major damage in 1947; it also erupted in
1970 and 1981. Askja, in the southeastern part of
the central highlands, last erupted in 1961.
There has been a series of small eruptions with
lava flows at Krafla near Lake Myvatn in the
northeast since 1976—often with as many as
two eruptions per year. In 1963 a submarine
eruption formed the volcanic island of Surtsey.
Ten years later another volcano erupted in the
same group of islands. In that case the islanders
on Heimaey had to be evacuated to the Icelandic
mainland and about one-third of the fishing
village was buried in ash. The Defense Force
took part in both the evacuation and rescue
efforts.
In recent years few people have been killed or
injured by volcanic activity in Iceland. Most of
the damage has been to property, farms and
livestock. Earthquakes occur too, but have
caused little damage during recent years due to
stringent Icelandic building codes.
The NATO Base geothermal plant is lo-
cated at Svartsengi, an area of in-
tense subterranean heat near Grinda-
vik. The facility is unique in that it
uses a heat transfer process.
Special Supplement
Vol. 1, No. 1 Keflavik, Iceland Special Edition
Icelanders strive to make ends meet
The mainstay of the Icelandic economy is fish,
that is what the country has to export to pay for
most of its imports. Few nations are as depend-
ent on a single commodity for their survival as is
Iceland. Hence, fluctuations on the world market
and in the size of the fish stocks can have an
immediate, and devastating effect on this island
nation’s economy.
Another factor which affects Iceland is the
cost of essential imports such as fuel, feedstuffs
and consumer goods. These prices may rise but
Iceland—tied as it is to fish exports—cannot
recoup those costs by increasing its own export
prices. The consequences? Either massive unem-
ployment or inflation.
CONTENTS
Icelandic people have Nordic, Celtic heritage.. 2
Many new industries emerge................... 2
Fishing industry: More than a way of life.... 2
Democracy: A thousand year tradition.........3
Famine, plague, poverty shape nation’s past... 3
Social, industrial revolution marks progress ... 3
A young country still in developing stages .... 4
Varied bird population highlights wildlife... 4
Free tuition through university.............. 5
Socialized medicine, expensive but effective .. 5
Life expectancy another record breaker........5
An Icelandic adventure......................6-7
Joint service—Joint pride...................6-7
Nordic Ally hit hard by War.................. 8
Language skills eliminate barriers........... 8
Real progress made in women’s rights......... 9
Are Icelanders social or argumentative? ......9
Nation is booksellers’ paradise.............. 9
Discos? Yes! But tradition too............... 9
Icelandic driving laws similar, but unique .... 10
Insurance, tires, weather summary ...........11
Reykjavik—world’s northernmost capital.......12
Airport town depends on boats not planes ... 12
As unemployment could lead to a similar situa-
tion as the Great Depression, with the estab-
lishment of virtual ghost towns and massive
social problems, Icelanders have preferred infla-
tion as an alternative.
Inflation since the OPEC fuel price increases
of the 1970s has run between 35 and 55%. Suc-
cessive coalition governments have tried to hold
inflation in check by various means with moder-
ate success. Among these have been a ‘floating’
rate of exchange, so the krona (unit of Icelandic
currency) finds its own level against other cur-
rencies; ‘inflation proofing’ loans so that repay-
ments will be in ‘real’ as opposed to ‘inflated’
terms; cost-of-living indexation for pay scales;
and broadening the base of the export industry.
Icelandic natural resources dictate its exports
while its needs shape its working pattern. Thus it
is that although 76% of its exports are frozen and
processed fish, only 13% of the work force is
engaged in this industry. The use of abundant
energy has spurred the growth of aluminum
production (12% of its total exports). Other
manufacturing such as weaving, knitting, paints,
fishing gear, etc. provide a further 10% of the
total exports. However, these two manufactur-
ing elements employ 17% of the work force.
Agriculture employs almost 9% of the popula-
tion, but supplies only 2% of the export total—
the rest is consumed domestically.
Where then does the rest of the population
work? Most are involved in trade, finance and
the service industries. Trade is vital for an island
community and it is a natural effect that many
people (about 18%) are involved in that industry.
Less understood, but equally important, are the
people who make our lives more comfortable by
providing roads and utilities, by educating the
young and taking care of the community’s
health needs, and so on. As a modern welfare
state Iceland has 25% of its labor force working
in the public sector. As the population expands
by approximately 1.5% per year it is apparent
there is a need for more housing. About 11% of
the working force is involved in construction.
But.industry has to expand too, so there is a lot
of capital investment construction as well—with
everything from new factories to ambitious hydro-
electric power stations. The remainder of the
work force is engaged in transport—getting
those goods and services to market.
This looking to the future is also readily seen
in the nation’s imports. Iceland buys a lot of
consumer goods—32% of total imports—but
investment goods, such as plant and machinery,
modern fishing vessels, etc. comprises 31% of
all imports. The rest is taken up by fuels and
intermediate goods—those materials needed to
produce everything from furniture to packaging
for Iceland's exports.
The United States buys 20-28% of Iceland’s
exports and provides it with close to 10% of its
imports. The other major trading partners are
western Europe, who buy about 45% of Iceland’s
exports and sell it about 60% of its imports, and
eastern Europe which receives about 9% of the
island nation’s exports and sells the country 11%
of its needs.
Economically, the future of Iceland is bright.
The nation has a tremendous energy potential in
its rivers and geothermal reserves. So far, less
than 10% of its electrical energy potential has
been exploited, and even less—one twentieth—of
its geothermal power is ‘on-line.’
The thrust in the future will probably be to
expand into more energy-intensive industries—
the kind of processing or production effort
which needs a lot of energy but few people. As
the world’s reserves of finite fuels—such as oil,
coal and wood—dwindle, increasing depend-
ence will be placed on non-polluting, and renew-
able, power sources. Iceland has these.