According to local news, “The China Petrochemical Corporation (Sinopec Group), China’s leading oil refiner, said during the weekend that it has started commercial development of geothermal resources as part of its strategy of low-carbon economic growth.

Through its wholly owned subsidiary, Sinopec Star Petroleum, Sin opec has established a joint venture, Shaanxi Green Energy Geothermal Development, with Icelandic company Enex Kina.

The Sino-Icelandic JV was established in Xian Yang in China’s no rthwestern Shaanxi province at the end of 2006 with total registered c apital of 99 million yuan. Sinopec and Chinese shareholders hold 51 pe rcent of the company’s shares.

The company is engaged in geothermal resources exploitation and utilization as well as the development of related workmanship and tech nology.

Zan Qi, the general manager of Star Petroleum, said that Sinopec ‘s geothermal development has now has the capability to provide heatin g for 2.6 million square meters of housing in Xiang Yang of Shaanxi pr ovince and Baoding of Hebei province, which translates into a reductio n of 300,000 tonnes in carbon dioxide emission.

Zan says the company is to provide heating service coverage of 4 million square meters of housing area by the end of 2010. It will be able to cover 10 million square meters of housing in the next five yea rs, and geothermal power generating and clarification of waste water w ill also be added to services.

The Sinopec Group, the parent company of Sinopec (SNP.NYSE; 6000 28.SH), is also engaged in a wide range of new-energy research and dev elopment. Besides geothermal resources development, it has also financ ed research and development on bio-fuels and coalbed methane.”

Source: Trading Markets