China Petrochemical Corp, also known as Sinopec Group, has partnered an Iceland-based company to set up a new venture to further develop geothermal energy in China as it seeks to expand the renewable resource.

"The geothermal energy development is strategically important for the company as we aim to build the business into one of our main works within three years," said Su Shulin, general manager of Sinopec, Asia's largest refiner.

Sinopec Star Petroleum Co, a subsidiary of Sinopec and its Iceland partner Geysir Energy Green Energy, signed a framework pact on June 9 to establish the Sino-Icelandic Green Energy Geothermal Development Corp, Sinopec said in a statement yesterday.

Sinopec and Geysir also planned to enlarge their existing geothermal district heating projects in Shaanxi and Hebei provinces.

The two partners started cooperating in May 2005 and operated three projects via a joint venture with a combined installed peak-load capacity of 140 megawatts thermal, capable of supplying geothermal heating energy to an area of 3 million square meters.

The establishment of the new corporation will be a platform to develop geothermal across China, Geysir said in a statement.

Geysir said the two parties share a common objective to promote further development of the renewable energy sector and to develop geothermal district heating services on a broader scale in China.

Separately, Sinopec said it's expanding the new energy business via exploration in several areas including fuel ethanol, biodiesel and biochemical. It seeks an output of 2.5 billion square meters of coal seam gas and shale gas by the end of 2015.

Source: Shanghai Daily.com