Iceland, China establish geothermal energy partnership

Iceland will work with China to develop geothermal resources.

Speaking in Abu Dhabi this week, Iceland's President Olafur Grimsson said, "Both Premier Wen Jiaboa and Vice President Xi, who will be the next President of China, declared that on the basis of what China has done with Iceland in the field of geothermal, China now looks at Iceland as its primary partner in the geothermal transformation of China."

In an effort to meet an exponentially growing energy demand, as well as reduce its greenhouse gas emissions, China has become the leading investor in alternative energy technologies.  Last year it attracted US$34.5 billion in investment in clean technologies.

China Petroleum & Chemical Corporation, the second largest oil and gas producer in the country plans to make geothermal energy one of its main businesses.  Recently, it signed an agreement with Iceland's Geysir Green Energy to jointly develop geothermal power.