Smelter Plans in North Iceland Postponed Skip to content

Smelter Plans in North Iceland Postponed

The decision was taken last week to postpone experimental drilling for geothermal energy to power a potential aluminum smelter in Bakki, near Húsavík in northeast Iceland. A decision on whether the project will be resumed will be reached after one year.

“It is a huge disappointment,” Valgerdur Sverrisdóttir, vice-chairman for the Progressive Party and an MP for the Northeast Constituency, told Fréttabladid, adding that she is hopeful an aluminum smelter will be constructed in Bakki eventually.

However, if all smelter plans for Bakki will be canceled, Sverrisdóttir said it is important that the government makes an announcement in that regard as soon as possible so that a new partner on harnessing geothermal energy in northeast Iceland can be found.

An announcement from the representatives of the Bakki project states that the postponement is among other things caused by uncertainty in financial markets.

Sverrisdóttir commented that although the international situation is certainly part of the government’s attitude towards the project, it is not the only reason. “The government never really supported the project.”

Click here to read more about the smelter in Helguvík, which is currently under construction, and here to read more about the debate surrounding the Bakki smelter project.

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