China Petroleum & Chemical Corporation (Sinopec) has announced the signing of a framework agreement to expand the scale of its business and joint development of geothermal resources with Icelandic partner Oka Energy Holdings Limited. The joint venture combines business, technical, research and development applications.
Under the cooperative agreement both sides will commit to working together to promote the development and utilization of geothermal and low-carbon economic development throughout China and internationally. They will also join forces to expand subsidiaries of both Sinopec National Star Petroleum and Iceland Enlai Alex, set up joint investments in China’s Shaanxi province, and strive to achieve more than 100 million square meters of geothermal heating in China by 2020. The companies also plan to jointly establish a co-invested high temperature geothermal power generation project.
Geothermal resources have massive potential to assist in meeting the mounting energy needs of China’s still rapidly expanding and industrializing economy. Combined with improvements to China’s energy structure, the development of a recycling economy, and the nurturing of an environmental social consciousness, geothermal energy is a key component of sustainable Chinese economic development.