Alcoa Submits Comparison Report to Planning Agency; Project Estimated to Create 750 Permanent New Jobs in Eastern Iceland
November 22, 2002
Alcoa announced today that it has submitted a report to the State Planning Agency comparing the economic, social and environmental aspects of its proposed aluminum plant in East Iceland to the impact of an earlier plan by another company. The Planning Agency will use this report as a source in determining whether a new Environmental Impact Assessment of the project needs to be prepared. Alcoa's study builds on earlier work that was done for the proposed Reyðarál plant, but shows where the impacts would be different from the originally proposed facility.
Although smaller than the initial Reyðarál plant, Alcoa's project will significantly increase employment opportunities in East Iceland. The study estimates that, when completed, the Alcoa project will directly employ approximately 455 people and about another 295 indirectly for a total of 750 new jobs. Those new jobs will help strengthen and diversify the economy of East Iceland, which has seen declining employment and out-migration as traditional jobs in fisheries and farming have declined. Up to an additional 1800 workers are expected to be involved in the construction of the facility.
The Alcoa plant is estimated to have less significant environmental impacts than the Reyðarál design for four basic reasons:
- Annual production level of the Alcoa plant will be approximately 25% below that planned for the original Reyðarál plant.
- Alcoa will not have on-site disposal of hazardous waste, specifically Spent Pot Lining (SPL), a by-product of the aluminum production process.
- Alcoa is investigating designs to meet its goal for zero process water discharge.
- Finally, the manufacture of carbon anodes will be done at a location outside of Iceland, eliminating a major source of sulfur dioxide (SO2), nitrogen oxide (NOX) and hydrocarbon (PAH) emissions from the site.
While the plant will bolster the local economy in East Iceland, it will not draw on as many resources as the original Reyðarál design. The smaller size of the Alcoa plant ensures that it will consume less electricity (22% less), less fuel (33% less) and less water (58% less) according to the study's projections.
The project will comply with all air and water quality standards of Iceland and the EU directives scheduled to take effect in 2005 and 2010. In some areas, the plant goes beyond compliance. Because of its reduced size and deployment of Alcoa technology, the Alcoa plant is projected to have significantly less greenhouse gas emissions than the original plan. The study shows that carbon dioxide (CO2 ) emissions will be 25% below the Reydaral plan, and PFC emissions (another greenhouse gas) will be 40% less. Lower greenhouse gas emissions should contribute to the global campaign against climate change. Emissions of nitrogen oxide (NOX) will also be 80% less than under the Reyðarál plan. Alcoa has established a sustainability team to develop recommendations to achieve world benchmark design, operating, and management systems for the plant and maximize financial, environmental, health and safety performance. That work is still in progress, particularly on how best to control the SO2 emissions and reach the goal of zero process water discharge.
During construction of the project, Alcoa will work closely with East Iceland communities to minimize disturbance, because that construction will take place in a shorter time frame than the original project. After construction is completed, the Alcoa facility will require less from local infrastructure and service organizations than the original Reyðarál plant. Increases in population, and needs for housing and social services will be less dramatic than under the larger Reyðarál plant.
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Read the Text of the State Planning Agency's Decision
Decision issued December 20, 2002. Download the document in pdf format.
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Planning Agency's Decision Validates Comparison Report
December 20, 2002–Iceland's State Planning Agency has issued a decision validating the environmental and socio-economic positions in Alcoa's Comparison Report.
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Support for the Alcoa Project
Groups from Chambers of Commerce to labor unions are in support. Read their statements and responses to the environmental impact assessment.
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Read the Comparison Report
Download the complete report in pdf format.
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