Musings, politics and environmental issues

Posts tagged ‘ASH’

Difficult silicon market hinders sale of Helguvik smelter

Iceland’s Arion Bank, which has a number of holding companies including Stakksberg, the company entailed with the task of trying to sell the silicon metal smelter in Helguvik originally owned by United Silicon and closed down by the Environment Agency (EA) in September 2017, has sent out a statement saying that they have reduced the value ascribed to Stakksberg from 6.9 billion kronur (USD 52.9 million) at the end of March 2019 to 3.2 billion kronur (USD 25.6 million) nine months later.

Stakksberg has been rectifying some of the problems with the smelter identified by the EA, and has been trying to find a buyer for almost two years. The smelter’s original owner, United Silicon, went bankrupt in January 2018, but in December 2017 they too were searching for buyers.

According to Stakksberg’s homepage, the idea was to have the smelter up and running in the last quarter of 2020.

img_0223

Arion Bank says that because of “uncertainty in the market, several manufacturers have reduced their production or closed smelters. Thus unused manufacturing capacity is available that might well have a negative effect on the sale of the silicon metal smelter in Helguvik”.

If they have done their homework, potential buyers – if there are any – would be aware of the problems faced by PCC Bakki Silicon in the north, who asked for more funding last year. PCC have also had unexpected problems with Iceland’s winter weather, and say that the problems they have encountered were not those they were expecting – despite using best available technology, etc. None of this would be of any comfort to prospective buyers of the Helguvik smelter down south.

People involved in ASH, the campaign group against the reopening of the Helguvik silicon smelter, are overjoyed however, as there was a lot of opposition by locals to the smelter during the short time that it was operating.

It’s not just the silicon metal industry that is facing problems. Because of worsening conditions in the aluminium market, which are “very demanding”, Iceland’s oldest aluminium smelter is going to operate at 15% reduced capacity in 2020, with a corresponding decrease in electricity use. The plant is currently Iceland’s second largest user of electricity.

IMG_0123

This smelter, which is situated on the outskirts of the capital city, is currently owned by Rio Tinto Alcan but was searching for a new owner two years ago. Norsk Hydro was going to buy it but the sale fell through seven months later.

Update, 12 February 2019: Rio Tinto has just announced that it will do a strategic review of its Icelandic smelter at Straumsvik, due to high electricity costs – which Icelanders consider are actually very low – and “historically low” aluminium prices. They may even close the smelter. The review is expected to be completed within the next few months.

 

Iceland’s silicon metal industry still having problems

PCC Bakki Silicon mentioned on their Facebook page recently that although their first furnace was operating smoothly for considerable time (which I doubt is the case), furnace no. 2 was still causing them problems. “Now”, they say, the cooling system is leaking water and they have to open the emergency chimney again. The plant is causing endless problems, like the first silicon plant at Helguvik that was eventually closed down after nine months of operation.

In response to the leak, one person – obviously a member of ASH, the group opposed to the silicon smelter in Helguvik  – commented: “Helguvik all over again.”

The Bakki smelter is supposedly using BAT,  Best Available Technology, or Best Available Techniques, which sounds reassuring but is just a bluff that doesn’t mean anything.

Engineering-related problems are not their only worries. There was another small fire this morning at the plant, in the same place as the first fire.

They are also about to get their third CEO since the plant started operation about a year ago. Ostensibly, CEO no. 2 wants to move down south again for personal reasons.

In response to a question I asked  at a public meeting last year, organized by the company Stakksberg that is currently seeing to the “refurbishment” of the Helguvik plant, the Stakksberg director, Thordur Olafur Thordarson,  admitted that he did not know about the problems that PCC was having.

Stakksberg is a daughter company of Arion Bank, set up specifically to see to the Helguvik smelter, and has been trying to sell the former United Silicon plant for many months. Originally, Arion Bank said that they had a number of prospective buyers, but they obviously haven’t succeeded yet – and with all the countless problems that PCC is having, I can’t see any company wanting to take it on.

Indeed, even though Stakksberg never intended to run the Helguvik plant themselves, their website now says:

Stakksberg owns a plant in Helguvik, which produces 99% pure silicon (Si) and has a production capacity of 23,000 tonnes per year. The silicon is used, among other things, to manufacture solar cells and computer circuits. Some 70 persons will be employed at Stakksberg’s plant in Helguvik when the plant starts its operation.

Note the use of the present tense (produces, is used) and the use of the words “Stakksberg’s plant”. The website makes no mention of trying to sell the plant. Stakksberg say they hope to start the Helguvik plant up in the last quarter of 2020.

That won’t be popular.

 

Former United Silicon smelter rears its ugly head again

At a packed residents’ meeting last night over the future of the silicon metal plant in Helguvik formerly owned by United Silicon, Thordur Thordarson from Stakksberg said, in  response to a question about whether the thought had ever occurred to them to simply dismantle the plant, “Too much money has been spent on the silicon metal smelter already. If we abandon the aim of resurrecting the plant, it would be inexcusable handling of money.”

But the local campaigning group ASH say that they don’t want it to reopen.

Stakksberg is the company set up by Arion Bank to deal with the mess left by United Silicon. They intend to sell the plant when the extensive repairs and modifications have been completed. They say that the plant should be operational by 2020.

The meeting was called at two days’ notice. In the intervening period, considerable media attention was directed at the dormant plant, and the other silicon plant designed to be adjacent to the (Stakksberg) plant. The latter plant, which would be operated by Thorsil, had virtually disappeared off the drawing board as nothing had been heard about it for about two years – until someone from the local council said that the two silicon metal smelters would rescue Helguvik harbour.

The meeting, which lasted for almost three hours, consisted of explanations by Thordarson followed by powerpoint presentations by a Verkis engineer and a consultant from Norwegian firm Multiconsult. The first EIA for the Stakksberg/United Silicon plant was ostensibly prepared by Verkis, while Multiconsult were brought in last year to advise on problems – apparently, seven silicon metal smelters operate smoothly in Norway (though, unbeknown to the Multiconsult engineer, there appear to be health problems such as silicosis afflicting the workers).

Thordarson said that the “most able specialists” were advising Stakksberg. Note that United Silicon also said they had experts on hand to deal with any problems, and look what happened there.

Two of us brought up the matter of PCC Bakki, whose silicon smelter has been beset by problems and where start-up has not been easy, to say the least. Thordarson said he was not aware of the situation there, but “must look into it”. Unbelievable!!!

Other issues were brought up during question time. If Thorsil gets to operate with four furnaces and Stakksberg with four, how will anyone know which smelter is to blame if pollution levels rise sky high? No one knew the answer.

The Multiconsult person said that routine maintenance would mean that the furnaces would be shut down sometimes. Each time a furnace is restarted, there is the risk of burning odours. Multiply that by four (or eight) and there could be constant problems. One of the additions to the plant will be an emergency smoke stack that will operate during start-up. Some people are not convinced that this will make a difference.

Outside of the meeting, ASH is preparing a group lawsuit to call for a citizen’s referendum to try and stop the plant from becoming operational again.

A scoping document (in Icelandic) for a fresh EIA has been put forward and can be seen here.

 

 

Fire at PCC silicon smelter

The Icelandic media have just reported that a fire broke out last night at the PCC silicon smelter at Bakki, Husavik. The fire was in the furnace building and lasted about three hours. No one was hurt.

PCC have not put any news on their website since 8 June, so I don’t know whether it’s actually been operating as their last news said that they intended to start up the furnace again after midnight, i.e. June 9. I emailed them two weeks or so ago to ask if the reason nothing new was on their website was because nothing newsworthy was happening, but they didn’t reply. They had generally reported when the plant was being started up again but this time they didn’t.

Perhaps now the Environment Agency will start looking more closely into the operation at Bakki.

Today is the deadline for comments on the scoping document for improvements to the United Silicon plant which the company Stakksberg are overseeing. Stakksberg was set up specifically by Arion Bank for the process, as it is intended to sell the plant and get it operating again, though probably this will not happen before 2020. Karen Kjartansdottir, who was in charge of publicity for United Silicon, is now doing the same for Stakksberg.

Fire in silicon smelters is not unheard of, at least not in Iceland, as three fires occurred in the United Silicon plant at Helguvik, southwest Iceland, before the plant was eventually closed by the Environment Agency. Activists from ASH, the group opposed to heavy industry at Helguvik, are not surprised by the fire at Bakki – the best possible technology was supposedly being used at Bakki but STILL a fire can occur.

Problems with the United Silicon plant were partly attributed to the owners using a mismatch of equipment. But it appears that silicon smelters are proving more of a problem than the Icelandic authorities – not to mention the Icelandic government –  originally thought.

Stay tuned – this blog will probably get updated.

Update: PCC Bakki are on Facebook.  They have news (in Icelandic) there, including about the fire. They want to start up the other furnace as soon as possible while the other is getting repaired/checked. They have also now (mid-afternoon Tuesday) updated the news page on their website with information about the fire.

Update 19 July: They have still not started up the smelter again. “It is clear that changes have to be made,” they say.

Update 25 July: They began to start it up again yesterday morning (the process has to be done gradually), but shut it down 8 hours later due to a leak in the cooling system. They warned that villagers might be aware of odour.

Heated residents’ meeting demands closure of United Silicon smelter

At the packed public meeting aimed at residents living in the vicinity of the United Silicon plant at Helguvik, south-west Iceland, the Environment Agency said that they had authorized restarting of the plant back in May in the belief that modifications had been/were being done to the plant and that these would mean an end to the problems. But no, this hadn’t happened. In a detailed letter to the company that lists irregularities since the plant was restarted, the Agency now says they will close the plant on 10 September so that repairs can be done, or before then if if the furnace is stopped for more than an hour or was run at less than 10 megawatt power.

They say they receive almost no complaints if the smelter is run at full capacity, which is 32 megawatts. However, as one local councillor pointed out, in the 9 months since the plant started operating, the longest time that the plant has run at full capacity is 1.5 weeks.

The meeting was heated. One person asked those who had been affected by odour pollution or other pollution to stand up – and about one-third of those present did so. I suspect that many of those who did not stand up were not locals.

Various issues came up. The Left-Green MP for the constituency, Ari Trausti Gudmundsson, said that the plant machinery was made up of bits and pieces – one bit from here, another from there – which partly explains why there have been computer problems and pollution. Heart surgeon Tomas Gudbjartsson said that Norwegian research, though limited, shows that silicon has adverse effects on people living near silicon smelters as well as those working in the plants.

The local campaigning group that organized the meeting, ASH, wants the plant to close down. Period. And unlike the Environment Agency, which has always said that the plant must shut down until ….., ASH says there is no “until”. They are sick and tired of being guinea pigs. And they don’t want the Thorsil silicon plant to be built on the site opposite United Silicon either.

Only the Environment Agency has the authority to close down the plant.

 

Arbitration a headache for United Silicon

United Silicon started up its silicon metal furnace last night, with accompanying smells, for the first time since the second fire at the plant, which happened on July 18.

Meanwhile, the company is suffering another nightmare, this time financial. Arbitration dictated last week that the company had to pay a billion kronur (about €8.25 million, $9.7 million) to the building contractor ÍAV, and the money has to be paid this week. They are desperately trying to find a way to get shareholders to put up the money. Revenue is in short supply, as of course they couldn’t produce any silicon when the plant was shut down, in addition to which I suspect they’ve had to pay engineering companies a fortune to find out what’s been going wrong with the smelter.

A group opposed to the plant, with the initials ASH in Icelandic, have written a letter to some of the investors, asking whether they really want to support the United Silicon plant which has had so many problems. They say that smoke usually surrounds the plant, and is carried to residents of nearby municipalities depending on the wind direction.