Alcoa Receives Favorable Decision From Planning Agency for Plant in Iceland; Iceland Project is Key Element in Alcoa’s Primary Metals Strategy
December 20, 2002
Alcoa welcomed the decision today by the Planning Agency validating its report on the environmental and socio-economic impacts associated with its proposed aluminum plant in East Iceland. That plant, when completed in 2007, will have approximately 320,000 metric tons per year of capacity.
“The Iceland plant is an important element of Alcoa’s growth strategy in primary metals,” said Mike Baltzell, President of Development for Alcoa Primary Metals. “We are taking action to move our production assets down the cost curve while maintaining return on capital targets. As we explore new projects around the world, we will continue to reassess our existing smelting portfolio, particularly in the United States, where escalating energy and labor costs have made many smelters less globally competitive."
Alcoa’s Iceland project will significantly increase employment opportunities in East Iceland, directly employing 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 1800 people will be employed to build the facility.
The new Alcoa plant is estimated to have less significant environmental impacts than a design previously proposed for the same location:
- Annual production level of the Alcoa plant will be approximately 25% below that planned under the previous proposal.
- Alcoa will not have on-site disposal of 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, carbon anodes, required continuously by the plant, will be manufactured at a location outside Iceland, thereby eliminating a major source of sulfur dioxide (SO2), nitrogen oxide (NOX) and hydrocarbon (PAH) emissions from the site.
The project will comply with all air and water quality standards of Iceland and the European Union directives scheduled to take effect in 2005 and 2010. In some areas, designed performance of the Alcoa plant goes beyond compliance. Carbon dioxide (CO2) emissions will be 25% below the earlier plan, and PFC emissions (another greenhouse gas) will be 40% less. Emissions of nitrogen oxide (NOX) will also be 80% less. Alcoa is committed to working closely with East Iceland communities to minimize disturbance during the construction and operating phases.
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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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