Editing Economy of Iceland (section)

====Aluminium====
[[Aluminium smelting]] is the most important power-intensive industry in Iceland. There are currently three plants in operation with a total capacity of over 850,000 metric tons per year (t/yr) in 2019,<ref>{{Cite web|title=Aluminium overtakes fish in Iceland|url=http://www.nordregio.se/en/Metameny/About-Nordregio/Journal-of-Nordregio/Journal-of-Nordregio-no-2-2011/Aluminium-overtakes-fish-in-Iceland/|archive-url=https://web.archive.org/web/20170330195258/http://www.nordregio.se/en/Metameny/About-Nordregio/Journal-of-Nordregio/Journal-of-Nordregio-no-2-2011/Aluminium-overtakes-fish-in-Iceland/|archive-date=30 March 2017|publisher=Nordregio|access-date=16 October 2013}}</ref> putting Iceland at [[List of countries by aluminium production|12th place]] among aluminium-producing nations worldwide as of 2023.<ref>[https://pubs.usgs.gov/periodicals/mcs2024/mcs2024-aluminum.pdf "USGS Minerals Information: Mineral Commodity Summaries"] (PDF). ''minerals.usgs.gov''. Retrieved 2025-01-14</ref>

[[Rio Tinto Alcan]] operates Iceland's first aluminium smelter (plant name: ISAL), in [[Straumsvík]], near the town of [[Hafnarfjörður]]. The plant has been in operation since 1969. Its initial capacity was 33,000 [[metric tons]] (t) per year, but it has since been expanded several times and now has a capacity of about 189,000 t/yr.<ref>Háskólabókasafn, Landsbókasafn Íslands -. [https://timarit.is/page/3186225 "Timarit.is"]. ''timarit.is'' (in Icelandic). Retrieved 31 May 2024.</ref>

The second plant started production in 1998 and is operated by Norðurál, a wholly owned subsidiary of U.S.-based [[Century Aluminum]] Company. It is located in [[Grundartangi]] in Western Iceland near the town of [[Akranes]]. Its former capacity was 220,000 t/yr but an expansion to 260,000 t/yr has already finished. In 2012, the plant produced 280,000 metric tons which was valued at 610 million dollars or 76 billion krónur. 4,300 gigawatts hours were used in the production that year, amounting to nearly one-fourth of all electrical energy produced in the country.<ref>{{Cite web | url=http://nordural.is/default.asp?sid_id=1878&tre_rod=001%7c001%7c006%7c&tId=2&fre_id=31134&meira=1 | title=Viðbótarstækkun Norðuráls flýtt | date=April 3, 2006 | publisher=Norðurál | access-date = 2006-06-22 |archive-url = https://web.archive.org/web/20060505160737/http://nordural.is/default.asp?sid_id=1878&tre_rod=001 <!-- Bot retrieved archive --> |archive-date = 2006-05-05}}</ref> In October 2013, Norðurál announced the start of a five-year project aimed at increasing its production by a further 50,000 t/yr.<ref>{{Cite web|title=Norðurál semur við VHE|trans-title=Nordurál signs contract with VHE|url=http://nordural.is/islenska/fyrirtaekid/frettir/nr/180923/|publisher=Norðurál ehf.|access-date=23 October 2013|language=is|date=15 October 2013|archive-url=https://web.archive.org/web/20131029192434/http://nordural.is/islenska/fyrirtaekid/frettir/nr/180923/|archive-date=29 October 2013|df=dmy-all}}</ref>

United States–based aluminium manufacturer [[Alcoa]] runs a plant near the town of [[Reyðarfjörður]]. The plant, known as ''Fjardaál'' (or "aluminium of the [[fjord]]s"), has a capacity of 346,000 t/yr and was put into operation in April 2008. To power the plant, [[Landsvirkjun]] built [[Kárahnjúkar Hydropower Plant|Kárahnjúkar]], a 690-[[megawatt|MW]]<ref>{{Cite web|title=Fljótsdalur Power Station|url=http://www.landsvirkjun.com/Company/PowerStations/FljotsdalurPowerStation/|publisher=Landvirkjun|access-date=16 October 2013|archive-date=20 May 2017|archive-url=https://web.archive.org/web/20170520181627/http://www.landsvirkjun.com/Company/PowerStations/FljotsdalurPowerStation}}</ref> hydropower station. The project was enormous in the context of the Icelandic economy, increasing total installed electric power capacity from under 1,600 MW to around 2,300 MW.<ref>{{Cite web|title=Virkjanasaga frá 1930 til 2012|trans-title=Historic development of installed power between 1930 and 2012|url=http://www.orkustofnun.is/yfirflokkur/raforkutolfraedi/virkjanasaga|publisher=National Energy Authority (Orkustofnun), Iceland|access-date=16 October 2013|archive-date=13 September 2016|archive-url=https://web.archive.org/web/20160913183232/http://www.orkustofnun.is/yfirflokkur/raforkutolfraedi/virkjanasaga|url-status=dead}}</ref>
[[File:Alcoa Reydarfjördur.JPG|thumb|Alcoa's aluminium plant in Reyðarfjörður, Iceland]]
According to Alcoa, construction of Fjardaál entailed no human displacement, no impact on [[endangered species]], and no danger to commercial fisheries; there will also be no significant effect on reindeer, bird and seal populations.<ref>{{Cite web | url=http://www.alcoa.com/iceland/en/alcoa_iceland/fjardaal_background.asp | title=Fjarðaál Overview | publisher=Alcoa Aluminum | access-date = 2006-06-22}}</ref> However, the project drew considerable opposition from environmentalist groups such as the [[World Wide Fund for Nature]], which called on Alcoa to abandon the plan to build Fjardaál. In addition, Icelandic singer [[Björk]] was a notable early opponent to the plan; protesting the proposed construction, the singer's mother, Hildur Rúna Hauksdóttir, went on a [[hunger strike]] in 2002.<ref>{{Cite news | url=http://news.bbc.co.uk/2/hi/entertainment/2336349.stm | title=Bjork's mother on hunger strike | date=October 17, 2002 | work=BBC News | access-date = 2006-06-22}}</ref>

Several other aluminium smelter projects have been planned. Between 2005 and 2011, Alcoa conducted a feasibility study for a second plant in Iceland near [[Húsavík]].<ref>{{Cite web | url=http://www.alcoa.com/iceland/en/news/whats_new/2006/2006_05_mou.asp | title=Alcoa, Government of Iceland and Municipality of Húsavík Sign Memorandum of Understanding | date=May 17, 2006 | publisher=Alcoa | access-date = 2006-06-22}}</ref> That plant was to have a 250,000 t/yr capacity, to be powered entirely by [[geothermal power]], although later estimates showed a potential need for other sources of power. In October 2011, Alcoa announced its decision to cancel the Bakki project.<ref>{{Cite web|title=Alcoa hættir við Bakka|trans-title=Alcoa cancels Bakki|url=http://www.mbl.is/frettir/innlent/2011/10/17/alcoa_haettir_vid_bakka/|access-date=16 October 2013|language=is|date=17 October 2011}}</ref> In 2006, Nordurál signed a memorandum of understanding with two Icelandic geothermal power producers, [[Hitaveita Suðurnesja]] and [[Orkuveita Reykjavíkur]], to purchase electricity for its own aluminium reduction project in [[Helguvík]]. The power supplied will initially support aluminium production of 150,000 t/yr, which will eventually grow to support 250,000 t/yr.<ref>{{Cite web|url=http://www.nordural.is/Default.asp?Sid_Id=1879&tId=2&Tre_Rod=002&fre_id=33704&meira=1 |title=Century Aluminum Company Icelandic Subsidiary Signs Energy MOU for Helguvik Greenfield Smelter |date=June 2, 2006 |publisher=Nordural |access-date=2006-06-22 |archive-url=https://web.archive.org/web/20071008054440/http://www.nordural.is/Default.asp?Sid_Id=1879&tId=2&Tre_Rod=002&fre_id=33704&meira=1 |archive-date=October 8, 2007 }}</ref>