Agreement Expected to Open Way for Iceland Hydro Scheme
Initialing of a power-purchase agreement late this month is expected to open the way to construction of Iceland's biggest-ever industrial project. To attract an energy-intensive aluminum plant, the island's state power company plans to invest over $1 billion on a major hydroelectric complex, flooding nearly 60 sq kilometers of arctic highland wilderness.
Large rockfill dams in glacial rivers north of Vatnajökull, Europe's largest glacier, will impound 57-sq-km Hálslón Reservoir. Water will flow through 40 km of tunnel to a 630-Mw powerhouse. Over 50 km of transmission lines will carry electricity to the proposed smelter at Reydarfjordur, on the east coast.