New geothermal heating utility launched in China

A consortium of Icelandic/Nordic companies have implemented a new geothermal energy-based district heating company in China.

Included in the group are Icelandic-Norwegian financier Glitnir and Icelandic power companies, led by Orkuveita Reykjavikur, which now runs the world's largest geothermal district heating system in Reykjavik, Iceland.

The Icelandic companies are major shareholders in Shaanxi Green Energy, the company formed to undertake the venture. The heating utility, based in in Xian Yang - China's official geothermal city - was inaugurated today by Iceland's Minister for Foreign Affairs, Mrs. Valgerdur Sverrisdóttir and representatives of the official geothermal city municipality.

Geothermal energy is recognized in China's energy policy as having potential to service the needs of China and other countries.

The geothermal heating system in Xian Yang is the first project of the newly established Shaanxi Green Energy, which is a Joint Venture between Shaanxi Geothermal Energy Development Co. Ltd. (CGCO) and Enex China, in which Glitnir is one of the three main shareholders. The partnership has the potential to become the biggest geothermal heating facility in the world, say the companies involved.

For the past seventy years, Iceland has pioneered the use of geothermal power. The financial group Glitnir has coupled Iceland's considerable geothermal energy expertise with entrepreneurship and financial muscle, turning the tiny Arctic nation's niche expertise into an export.

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