It is important that society participates and invests in the infrastructure, says Jørgen Wæver Johansen.

Opportunities for utilizing hydropower from Lake Tasersiaq are mainly about creating energy-intensive industry, such as the production of ammonia and aluminum.

Opportunities to utilize hydropower

Analysis of the development projects reveals that aluminum has the greatest social, economic and climate benefits, which are 3 to 7 times greater than ammonia. Aluminum also attracts other industries with the potential to increase the value of aluminum sold several times.

Opportunities for utilizing hydropower from Lake Tasersiaq are mainly about creating energy-intensive industry, such as the production of ammonia and aluminum.

Opportunities to utilize hydropowerAnnouncement

Analysis of the development projects reveals that aluminum has the greatest social, economic and climate benefits, which are 3 to 7 times greater than ammonia. Aluminum also attracts other industries with the potential to increase the value of aluminum sold several times.

Jørgen Wæver Johansen, who together with Klavs Sefeld Møller has prepared the major project, states that Tasersiaq alone can constantly produce 950 MegaWatt (firm energy) year-round, which is enough energy to produce 600,000 tons of aluminum per year in an aluminum smelter.

– With current world market prices, production could be sold for 12 billion kroner and there is a high demand for aluminum on the world market, which is a critical metal for both the EU, the US and NATO, they point out.

– We will be able to produce climate-friendly aluminum just like the Icelandic smelters. If we get the same terms and conditions that they got when they started, we will be in a better position than Iceland and will thus be very competitive.

– Revenue from 600,000 tons of Aluminum is twice as large as the total fishing in Greenland, and remember that we have only investigated what one lake can provide.

– There are very large opportunities in the area, as all the energy can be utilized industrially, among other things, all surplus energy can be used to produce green fuels, thereby reducing our dependence on fossil fuels, emphasizes Jørgen Wæver Johansen.

Project

It has not been announced how many and which companies will be included in the final pre-qualification round. However, the French state-owned energy company EDF and the Icelandic Landsvirkjun have shown interest, while the Danish Ørsted has withdrawn.

Most companies that are interested will use the energy for the production of ammonia and Power to X.

– But we are sure that aluminum is best because it is the most valuable, and based on proven technology with sales to an existing market, in both North America and Europe. We will even be able to contribute to Europe becoming less and less dependent on buying aluminum from Russia, adds Jørgen Wæver Johansen.

He estimates that when production is in operation, a total of around 1,500 full-time employees will be employed at the hydroelectric power plant and the smelter.

Today, the water from the lake flows into the Kangerlussuaq Fjord, and it is a possibility to locate the smelter at the Kangerlussuaq Fjord, but it depends on the requirements and conditions that the self-government includes in their prequalification requirements.

– It is important that the smelter is located by the sea, so that production can be shipped out year-round. Where we are thinking of placing the plant is by the Kangerlussuaq fjord and there is plenty of space for the smelter and related industry, as well as the possibility of a land connection to Kangerlussuaq International Airport, says Jørgen Wæver Johansen. 

Labor reserve

How will you get those employees?

How will you get those employees?

– We know of a smelter in Iceland with 614 employees, 57 percent of whom are unskilled. The average salary there is 730,000 Danish kroner per year, which is 2.5 times higher than the average salary in Greenland.

– Greenland has a large untapped labor reserve, if we compare ourselves with the Faroe Islands and Iceland. I think there are a lot of people in Greenland who would like to earn that salary. We also have many young people between the ages of 16 and 24 who are neither in education nor in work. In addition, many Greenlanders have moved to Denmark to get better welfare and a future for their family. I think they would like to move back to Greenland if we can grow and create better welfare – and we will be able to do that with our project.

– We have seen in the Faroe Islands how the good economy resulted in people moving back to the islands, the same can happen in Greenland.

– We have seen in Oman in the Arab world that, in connection with the decision to build a smelter, a focused effort (Omanization) was started to develop skills and employ local workers at the smelter. The decision to establish the smelter in Oman was made in 2004, and in 2009 the smelter was ready for production. 10 years later, 75 percent of the employees were local Omanis. It is therefore proven that it can be done if there is political will to do so, assesses Jørgen Wæver Johansen.

How much money should be invested in hydroelectric power and smelting plants?

How much money should be invested in hydroelectric power and smelting plants?

– 40-45 billion kroner.

What about the expensive infrastructure, such as a port, housing and facilities for employees, a hospital, roads, and perhaps an airport. Who will finance it?

What about the expensive infrastructure, such as a port, housing and facilities for employees, a hospital, roads, and perhaps an airport? Who will finance it?

– We expect that society will be interested in securing the infrastructure, as we have seen in Iceland, when so much money is invested in Greenland to create growth and revenue. This will benefit the entire society.

– It is very important that politicians unite around this project, which will create the basis for the economic self-sufficiency that everyone wants.

– We can see in Kalundborg, where Novo Nordisk is investing 43 billion kroner in a new factory. Both the municipality and the state and region are investing in infrastructure such as housing, kindergartens, better schools, education and motorways, etc., because they can see the value in investing in the local community.

– It is important that politicians agree and work together to realize such a large project and Greenland’s participation in the tender round. It is important to take ownership of the value chain, as the experience from the Kryolite Mine also shows.

– So it’s about us agreeing and wanting this together, otherwise it won’t come to anything, emphasizes Jørgen Wæver Johansen.

– Today, the water flows into Kangerlussuaq. The water that can create a turnover of 12 billion kroner per year – for the next 100 years. I am very surprised that they are not working to complete that prequalification. We need those values today to secure and develop our welfare and restore growth in Greenland. It is simply not good enough for that project to stand still, he says.

Opportunities for utilizing hydropower from Lake Tasersiaq are mainly about creating energy-intensive industry, such as the production of ammonia and aluminum.

Opportunities to utilize hydropower

Analysis of the development projects reveals that aluminum has the greatest social, economic and climate benefits, which are 3 to 7 times greater than ammonia. Aluminum also attracts other industries with the potential to increase the value of aluminum sold several times.

Opportunities for utilizing hydropower from Lake Tasersiaq are mainly about creating energy-intensive industry, such as the production of ammonia and aluminum.

Opportunities to utilize hydropowerAnnouncement

Analysis of the development projects reveals that aluminum has the greatest social, economic and climate benefits, which are 3 to 7 times greater than ammonia. Aluminum also attracts other industries with the potential to increase the value of aluminum sold several times.

Jørgen Wæver Johansen, who together with Klavs Sefeld Møller has prepared the major project, states that Tasersiaq alone can constantly produce 950 MegaWatt (firm energy) year-round, which is enough energy to produce 600,000 tons of aluminum per year in an aluminum smelter.

– With current world market prices, production could be sold for 12 billion kroner and there is a high demand for aluminum on the world market, which is a critical metal for both the EU, the US and NATO, they point out.

– We will be able to produce climate-friendly aluminum just like the Icelandic smelters. If we get the same terms and conditions that they got when they started, we will be in a better position than Iceland and will thus be very competitive.

– Revenue from 600,000 tons of Aluminum is twice as large as the total fishing in Greenland, and remember that we have only investigated what one lake can provide.

– There are very large opportunities in the area, as all the energy can be utilized industrially, among other things, all surplus energy can be used to produce green fuels, thereby reducing our dependence on fossil fuels, emphasizes Jørgen Wæver Johansen.

Project

It has not been announced how many and which companies will be included in the final pre-qualification round. However, the French state-owned energy company EDF and the Icelandic Landsvirkjun have shown interest, while the Danish Ørsted has withdrawn.

Most companies that are interested will use the energy for the production of ammonia and Power to X.

– But we are sure that aluminum is best because it is the most valuable, and based on proven technology with sales to an existing market, in both North America and Europe. We will even be able to contribute to Europe becoming less and less dependent on buying aluminum from Russia, adds Jørgen Wæver Johansen.

He estimates that when production is in operation, a total of around 1,500 full-time employees will be employed at the hydroelectric power plant and the smelter.

Today, the water from the lake flows into the Kangerlussuaq Fjord, and it is a possibility to locate the smelter at the Kangerlussuaq Fjord, but it depends on the requirements and conditions that the self-government includes in their prequalification requirements.

– It is important that the smelter is located by the sea, so that production can be shipped out year-round. Where we are thinking of placing the plant is by the Kangerlussuaq fjord and there is plenty of space for the smelter and related industry, as well as the possibility of a land connection to Kangerlussuaq International Airport, says Jørgen Wæver Johansen. 

Labor reserve

How will you get those employees?

How will you get those employees?

– We know of a smelter in Iceland with 614 employees, 57 percent of whom are unskilled. The average salary there is 730,000 Danish kroner per year, which is 2.5 times higher than the average salary in Greenland.

– Greenland has a large untapped labor reserve, if we compare ourselves with the Faroe Islands and Iceland. I think there are a lot of people in Greenland who would like to earn that salary. We also have many young people between the ages of 16 and 24 who are neither in education nor in work. In addition, many Greenlanders have moved to Denmark to get better welfare and a future for their family. I think they would like to move back to Greenland if we can grow and create better welfare – and we will be able to do that with our project.

– We have seen in the Faroe Islands how the good economy resulted in people moving back to the islands, the same can happen in Greenland.

– We have seen in Oman in the Arab world that, in connection with the decision to build a smelter, a focused effort (Omanization) was started to develop skills and employ local workers at the smelter. The decision to establish the smelter in Oman was made in 2004, and in 2009 the smelter was ready for production. 10 years later, 75 percent of the employees were local Omanis. It is therefore proven that it can be done if there is political will to do so, assesses Jørgen Wæver Johansen.

How much money should be invested in hydroelectric power and smelting plants?

How much money should be invested in hydroelectric power and smelting plants?

– 40-45 billion kroner.

What about the expensive infrastructure, such as a port, housing and facilities for employees, a hospital, roads, and perhaps an airport. Who will finance it?

What about the expensive infrastructure, such as a port, housing and facilities for employees, a hospital, roads, and perhaps an airport? Who will finance it?

– We expect that society will be interested in securing the infrastructure, as we have seen in Iceland, when so much money is invested in Greenland to create growth and revenue. This will benefit the entire society.

– It is very important that politicians unite around this project, which will create the basis for the economic self-sufficiency that everyone wants.

– We can see in Kalundborg, where Novo Nordisk is investing 43 billion kroner in a new factory. Both the municipality and the state and region are investing in infrastructure such as housing, kindergartens, better schools, education and motorways, etc., because they can see the value in investing in the local community.

– It is important that politicians agree and work together to realize such a large project and Greenland’s participation in the tender round. It is important to take ownership of the value chain, as the experience from the Kryolite Mine also shows.

– So it’s about us agreeing and wanting this together, otherwise it won’t come to anything, emphasizes Jørgen Wæver Johansen.

– Today, the water flows into Kangerlussuaq. The water that can create a turnover of 12 billion kroner per year – for the next 100 years. I am very surprised that they are not working to complete that prequalification. We need those values today to secure and develop our welfare and restore growth in Greenland. It is simply not good enough for that project to stand still, he says.