Sinopec, Orka Energy to develop geothermal energy projects in China

The two companies have started a joint venture (JV) Shaanxi Green Energy Geothermal Development that is expected to grow and expand the geothermal energy heating to at least 100m2 of house floor in China by the year 2020.

Sinopec owns 51% of the JV while Orka has 49% stake in the company which has a registered capital of RMB99m ($15.7m), reports businesswatch.21cbh.com.

Both the partners are planning to make the JV a technology provider that integrates research, development and applications.

In August, last year both the owners of the JV invested an additional $50m in the company.

The companies are also planning to develop electricity from the geothermal energy in high heat areas such as Tibet, which at present has a 25MW geothermal power plant in operation at Yangbajian and some small-scale pilot projects.

Orka Energy is one of the geothermal developing companies based in Iceland.

The clean energy generated from the geothermal plants can be used to generate electricity and heating homes.