Enex Kina and Sinopec Star are the owners of the JV company Shaanxi Green Energy (SGE). The first project of SGE was the construction and operation of a geothermal district heating system in the city of Xianyang in Shaanxi Province, China. The geothermal-powered heating system is replacing coal- burning facilities, thereby significantly reducing air pollution in the community.
The first phase of the project, completed in 2006, services three colleges in the city, which previously burned coal for heating. The second phase, completed in November of 2007, added two heat centrals and three geothermal wells to the existing geothermal heating network. Today, Shaanxi Green Energy operates 5 heat centrals and 8 geothermal wells and is providing geothermal heating to an area of 860 thousand square meters. The use of geothermal energy for heating replaces the use of coal fired heat centrals that cause coal smogs during winter time. The third phase, in place today expanded the geothermal district heating (DH) system to over 1,200,000 square meters of housing to include a new residential area in Xianyang city.
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The city of Xianyang has excellent geothermal potential with temperatures of 90°C-110°C, and was named China's First Geothermal City earlier this year. China’s energy policy recognizes geothermal energy as having extensive potential to service the energy needs of China as well as to significantly reduce air pollution. City officials are fully committed to tapping the geothermal potential of Xianyang. Its geothermal district-heating project sets an example for other cities to reduce their own reliance on fossil fuels for heating.