Jan 9 2007
Greenland Home Rule and Hydro have entered into an agreement to examine the possibilities for a primary aluminium plant in Greenland. The study will cover the environmental, social and economic issues related to a potential industrial development based on hydroelectric power supply.
It is the aim of the Greenland Home Rule Government to continue the positive business development in Greenland. The cabinet member for industry, jobs and vocational training, Siverth K. Heilmann, states that "this is yet another proof of Greenland's great potential for new industrial developments. This can open up new opportunities for the community, and it is the Government’s ambition to pursue such opportunities. We are working towards a sustainable, independent and well functioning community. This agreement is a step in that direction."
Both parties underline that they will take full consideration of Greenland's unique natural and environmental conditions, as well as other priorities, in this process.
The study is non-binding for both parties. The agreement is of the same character as that which Greenland Home Rule has entered into with another international aluminium company.
In line with its strategy to grow its aluminium activities, Hydro seeks to clarify if it is possible to establish a primary aluminium plant in Greenland with an annual capacity up to 300,000 tonnes. Such metal production requires a power-generating capacity of 500 MW.
"Production of primary aluminium in Greenland would be well located to serve our key markets in Europe and the USA. Hydro can draw upon its extensive experience of executing large-scale industrial developments in small communities, in
close cooperation with local authorities and not least local business," states Torstein Dale Sjøtveit, Executive Vice President in Hydro, who is responsible for the Aluminium Metal business area.
In its first phase, the cooperation will focus on producing the information needed to reach a future decision to initiate a more comprehensive aluminium project between Greenland Home Rule and Hydro. It will include a review of the hydroelectric potential of Greenland, hydrological data, environmental issues, as well as information regarding protected and restricted areas.
Hydro will outline the physical and technical requirements for a primary aluminium plant, the need for personnel and the scope for cooperation with local businesses in Greenland. Hydro will also present its programs for personnel training in the primary aluminium production field.
The pre-feasibility study is to be concluded by April 2007.