Article
23. Oct 2006 | Enex-China to Construct a Geothermal District Heating System
Enex-China and Shaanxi Geothermal Energy Development Corporation (CGCO) signed an agreement today that marks the founding of a joint venture company, Shaanxi Green Energy Geothermal Development Co. in the city of Xianyang in Shaanxi Province, China. Enex-China has a 49 % ownership in the new company.The joint venture company is the next step in an agreement since June 2006 between the parties involved. The first project of the new company is the construction and operation of a geothermal district heating system, which in the first phase will service three colleges in the city of Xianyang. The total investment of the first phase of the project is € 2.4 million.
The city of Xianyang has a vast geothermal potential that has until now been largely unexploited, and was named China's First Geothermal City earlier this year. City officials have shown great support for the project, which is in accordance with the goal of Chinese authorities that 15% of all energy in China come from renewable resources by 2020.
Enex-China is owned by Enex, Geysir Green Energy and Reykjavik Energy.
Pictured above are Mr. Bian Jun Jiang, Chairman of CGCO and Mr. Ásgeir Margeirsson, board member of Enex and Enex-China, at the signing of the contract in Xianyang, Oct. 23rd 2006.
back