Nope. Its real, though from the information in the linked Wikipedia page, the film may have slightly exaggerated its effects. Then again... probably not. It is considered a WMD after all.
Norwegian prison @ 6:00, It's a bit ridiculous really but it seems to work. Note that this prison used to be a pretty tough prison for young boys before WW1. The kids then took control of the Island. So the Norwegian monarchy sent marines to capture it back.