Tuff Processing Near Þorlákshöfn
Heidelberg in Iceland intends to build a factory and port in the industrial area west of Þorlákshöfn and start producing ground tuff for export and as an additive to cement, with the aim of significantly reducing the carbon footprint of cement production.
The operation will create around 80 well-paid jobs and up to 80 indirect jobs, considerable income for the municipality in the form of property taxes, street construction fees, and local taxes, and the municipality will also acquire the port that will be constructed. The reasons why Þorlákshöfn is well-suited include its location, strong infrastructure, abundant human resources, and good port options, as well as a large quantity of tuff available in nearby areas.
The residents’ vote on the continuation of the plans will begin on November 25 and will last until December 9. Residents can vote at the municipal office on all business days during its opening hours. On the parliamentary election day, which is November 30, voters will also have the opportunity to cast their votes at the polling station, with the opening hours being the same as for the parliamentary elections.
Why Þorlákshöfn?
The reason the area is well-suited is its location, strong infrastructure, abundant human resources, and good harbor options. Additionally, a large quantity of tuff is found in nearby areas, both in the sea and on land.
What are the benefits for Þorlákshöfn?
The operations will lead to a variety of well-paying jobs along with significant economic impacts for the community. It is expected that the direct revenue for the municipality from these operations will range between 300-500 million ISK per year, in the form of property taxes, street construction fees, and income tax, which accounts for nearly 20% of the municipality’s revenue in 2023. Investments related to the project will also bring significant economic benefits to the community during the development phase, including outsourced labor costs. The total investment is estimated at around 90 billion ISK, with approximately 12 billion ISK allocated for a new harbor, which the municipality will own once the original investment costs have been fully paid. Furthermore, the operations create 80 well-paying jobs, both general and specialized positions. These include jobs for electricians, mechanical engineers, engineers, technicians, and staff operating equipment, as well as drivers and crews on dredging ships. Additionally, the operations indirectly create up to 80 jobs, according to a KPMG report, which are jobs that arise in the local area due to the operations.
Why is this being done?
The project is essentially a massive climate project. It is estimated that up to 8% of global human-induced carbon emissions can be traced to the cement industry. Concrete, which includes cement among other components, is the most common building material in the world and is essential for all major buildings and infrastructure projects. By mixing volcanic tuff with cement, carbon dioxide emissions in the cement industry can be reduced by up to 20-25%. The project in Þorlákshöfn contributes to this effort and to Heidelberg Materials’ plans to significantly reduce the carbon footprint of its cement production. Producing and processing cement with renewable energy in Iceland would reduce the climate impact of cement production to an unprecedented extent in the industry. In this way, an important industry would be brought closer to sustainable production. With production in Þorlákshöfn, it is estimated that carbon dioxide emissions can be reduced by over 1 million tons per year – which is more than the entire fleet of cars in Iceland emits annually.
Is there pollution from the operations?
Detailed research has been conducted on the effects of the operations on air quality, potential dust pollution, noise pollution, and vibration. According to the findings, there are no significant issues with dust, noise, or odor pollution from the operations. This is supported by the Planning Agency’s environmental assessment report, which indicates that the primary environmental impact is the visual appearance of the structures. Furthermore, the overall operations of the planned companies in the area are expected to cause considerable cumulative effects on groundwater usage and traffic to and from the area. The carbon footprint of the factory will mainly result from vehicle and shipping transportation.
What impact does the operation have on traffic and the road system?
After modifications were made to material extraction, the traffic will be only 1/6 of what was originally planned. The estimated increase in traffic on the road section from the quarry in Þrengslum to the first roundabout at Þorlákshöfn is about 5%. This is similar to the traffic from the quarry in Lambafell southwards to Reykjavík. From the factory, all materials will be loaded directly onto ships, so there will be no material transport from the factory. To maintain traffic flow and enhance traffic safety, new access and exit lanes will be constructed at both the factory and the quarry. Heidelberg is working in collaboration with the Road Administration and the municipality to define necessary improvements in these areas.
What is Heidelberg Materials?
Heidelberg Materials is one of the largest manufacturers of construction materials in the world, and the company’s products are used in the construction of houses, roads and commercial and industrial structures. Originally German, the company is now multinational with operations in many countries. It is also the majority shareholder in Hornsteinn, an Icelandic holding company, which owns and operates three subsidiaries, all of which have a long history in Iceland; BM Vallá, Sementsverksmiðjan and Björgun.
Why does Heidelberg have these plans?
Heidelberg’s goal is to become a global leader in sustainable building materials. The cement industry is responsible for 6-8% of global anthropogenic carbon emissions. Because of this, one of Heidelberg Materials’ main goals is to reduce its carbon footprint and the negative impact of cement production. The project at Þorlákshöfn is part of the company’s plan to significantly reduce carbon emissions in the construction industry and thus bring an important industry closer to sustainable production. The use of tuff in cement production and its processing with renewable energy in Iceland would reduce the climate impact of cement production to an extent unprecedented in the industry.
Why is Þorlákshöfn suitable for this project?
The reason Þorlákshöfn was chosen is its good geographical location. Also, good harbour options and the fact that tuff can be found in large quantities in the area around the town, both in the sea and on land. In addition, the town has strong infrastructure and human resources and is growing rapidly.
How much is the carbon footprint of cement production reduced by using tuff in production?
It is estimated that the carbon footprint will be reduced by 20-25%. That is a medium goal, but an even higher replacement rate is aimed for, which requires further product development and the introduction of new products. Every step towards a lower carbon footprint of cement is a step in the right direction. A reduction of 20-25% is a good step forward, and with continued research and increased use of the material, a higher replacement rate may become a possibility.
Is cement necessary for the construction industry?
Cement production is and will be important to the modern construction industry for years to come. It is likely that in the future it will be possible to use more other materials in some branches of the construction industry, but cement is absolutely necessary in various structures and will be so for many years to come.
Has ground tuff already been used in cement production?
Tuff, a natural pozzolanic material (volcanic material), has long been used as an admixture in cement production. The material is already part of the European cement standard EN 197-1.
Where will the ground tuff be taken?
Primarily to destinations in Northern Europe, to Norway and Sweden, but possibly also to Belgium, the Netherlands, France, Great Britain and/or Germany.
How will the municipality and the state receive income from the project?
Ölfus receives income through taxes and fees from the activity as well as the project, which creates between 60-80 new jobs as well as secondary jobs. That can lead to an increase in the number of inhabitants in the town, which would mean increased income, e.g. through local government. Taxes and fees will of course be paid to the Icelandic state as required by law and regulations.
How does this project benefit the community in Þorlákshöfn?
In addition to that, creating increased employment and employment opportunities and generating taxable income for the municipality, the project will contribute to an attractive business life and the development of the municipality, as for excample a new port. Heidelberg Materials will – as it has always done – operate according to a community program where the company sponsors individual sports, leisure and cultural events and certain entrepreneurial projects.
What is Hornstein’s connection to the project?
Heidelberg Materials in Iceland and Hornsteinn are sister companies that both operate in Iceland. Heidelberg Materials is the sole owner of HPM and the majority owner of Hornsteinn. Hornstein’s CEO, Þorsteinn Víglundsson, has worked with Heidelberg Materials on the project and has been its advocate in Iceland.
What effect will the operation have on traffic in the vicinity of Þorlákshavn?
A final decision has not been made on how material will be transported from the mine to the factory. Several alternatives are under consideration, but Heidelberg Materials’ plans assume that the activity will not have an inhibiting effect on traffic in Þrengsli or in the vicinity of Þorlákshöfn.
Will there be pollution from the tuff processing?
Tuff mining is not inherently polluting. The processing takes place by grinding material that is found naturally in the town’s environment. The processing itself takes place in a closed space so that there will be no danger of fumes. The factory’s buildings have a visual impact, but otherwise the activities will not have noise or odor pollution or other negative side effects on the daily life of the townspeople.
What economic impact will the operation have on Þorlákshöfn?
Due to the size of the project for Þorlákshöfn, it is expected that the project will have a very large positive economic impact for the municipality. Job creation and secondary jobs will greatly increase the employment opportunities of the townspeople and the municipality’s income. It is difficult to give exact figures on the increase in the municipality’s income, but it is expected that local government payments and other fees to the municipality will increase the municipality’s income significantly, probably by tens of percent.
When is the plant scheduled to start operations?
The design and construction of the plant, along with the preparation for mining, will take about two years if plans go ahead. Production is expected to begin in 2025, but the final timing has not been confirmed.
How and how many jobs will follow the activity?
It is estimated that around 60-80 jobs will be created at the factory when it is fully operational. The jobs are of various types and include, among other things, in equipment control, engineering, electrical engineering and general management. There are also countless other secondary jobs that are created due to the purchase of various services related to the operation.
What effect will the activity have on traffic at Þorlákshöfn?
The environmental impact of transportation via Þrengslavegur is discussed in the environmental assessment report for leveling from Litla-Sandfell. There, the impact of the transport on safety is assessed as insignificantly negative. Annual traffic on Þrengslavegur is 1900 vehicles. Today, heavy vehicles pass through it, as there are large quarries located next to the road. In the master plan, it is assumed that up to 625,000 m3 of material will be collected per year in Litla-Sandfell, which is intended to be partially used for a milling plant. The aim is for the transports amounting to around 500,000 m3 of material per year when the factory is fully operational. If that traffic is divided evenly over the year, it amounts to 112 trips (round trip in total) per day. Such traffic amounts to about 6% of the total traffic per day on Þrengslavegur. Based on the plans for the mine’s operating license, we can expect more trips from the mine on Þrengslavegur, regardless of the milling plant. The Road Administration has already started looking at road improvements and has already improved Þrengslavegur from Highway 1 to Litla-Sandfell. Further road improvements on this section are planned for the future which fits well with the timetable of this project.
Will Little Sandfell disappear?
It is assumed that the hill will disappear, but that it will happen in 30-40 years, based on current exploitation plans. In general, the government’s policy has been to make full use of individual mines rather than open wounds in many parts of nature.
Where are the sea mines and why isn’t all the material taken from there?
The sea mines are off Markarfljótsós and are at a depth of 20-40 meters. It is better to mix marine and terrestrial materials to ensure a stable raw material throughout the winter, but the processing of sea mines during the dead of winter is difficult due to the weather.
What is the result of heavy ship traffic at Þorlákshöfn due to the activity?
1-2 ships per week are expected to pick up materials for export, as well as 5-7 trips by smaller ships when landing marine materials, per week.