BEIJING (XFN-ASIA) - Sinopec Group, China's top refiner, said it has agreed to jointly develop a geothermal energy project in Xianyang, in northwestern China's Shaanxi province, in cooperation with Iceland's Glitnir Bank.
Sinopec made the statement on the website of the China Petroleum and Chemical Industry Association.
The tie-up is expected to expand cooperation in geothermal energy, in which Iceland is a world leader.
In 2005, Sinopec Group unit and Iceland's Enex Co set up a joint venture to explore for geothermal energy in Xianyang.
To date, the joint venture has drilled 29 wells, it said.
Geothermal energy is considered environmentally friendly, permitting China a means to diversify away from coal, which accounts for more than 70 pct of the country's energy consumption.
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