Sinopec and Glitnir have announced their intention to increase geothermal energy investments and develop geothermal technology in China, as well as exploring new opportunities in district heating and energy generation.

Reykjavík Energy Invest, a leading geothermal investment company which recently merged with Geysir Green Energy, will support the agreement to increase the use of geothermal energy as an alternative energy source in China.

Glitnir and Sinopec have worked together on projects since 2005 when Glitnir offered to finance the world‘s largest district heating project in Xianyang, China. Following recent discussions, the two companies have agreed to further develop their relationship by jointly setting up a company with capabilities to develop geothermal and other renewable assets in China

The utilization of geothermal energy presents an environmental friendly, efficient and viable alternative to the traditional form of energy generation in China, namely coal, which accounts for more than 70 percent of total energy generation in China.

Both the Chinese and Icelandic governments support increased bilateral cooperation in the field of geothermal energy utilisation. Glitnir and Sinopec have been pioneers in the development of geothermal energy in China, a role they are keen on developing further.