The
Asian Development Bank (ADB) announced
that it signed landmark project with Icelandic and Chinese ventures to
promote zero-emissions heating.
The
ADB project involves a total of US$250 million in loans to Iceland’s Arctic Green Energy Corporation (AGE) and
Icelandic-Chinese venture Sinopec
Green Energy Geothermal Company Limited (SGE), with the objective to expand
environmentally sustainable district heating services in China.
Geothermal
district heating extracts thermal energy from beneath the earth’s surface for
delivery to households and business through dedicated pipelines. It offers an
alternative which is sustainable, stable, and cost-competitive to coal and gas,
has zero-emissions, and can be integrated into existing networks to replace
heat sources.
ADB Vice-President for Private Sector and Co-financing
Operations Diwakar Gupta called the collaboration “a landmark project for Asia”.
“Geothermal district heating can provide millions of
citizens with safe and stable heat access while dramatically reducing air
pollution and greenhouse gas emissions and the reliance on fossil fuels,” he said.
Iceland
is a pioneer in the use of geothermal energy for space heating. In 2014,
roughly 85% of primary energy use in Iceland came from indigenous renewable
resources. There of 66% was from geothermal.
In
recent years, Iceland has managed to increase the generation of electricity
with geothermal energy significantly. According to the National Energy Authority of Iceland, geothermal
power facilities currently generate 25% of the country's total electricity
production.
“Our partnership
signed today in Iceland, a country whose own energy system shows the potential
of geothermal, will deliver much-needed energy solutions that promote truly
sustainable development,” Mr Gupta said.
Based in Iceland, AGE is a leading global developer and
operator of renewables, including geothermal technology and energy efficiency
projects. The company’s mission is to export Icelandic expertise in geothermal
and renewables to fast growing countries in Asia.
According to SGE Vice Chairman and AGE Chairman and Founder
Haukur Hardarson, how cities are heated or cooled in the 21st century
will determine the outcome in the fight against air pollution and greenhouse
emissions.
In China, coal-based heating remains to be one of the major
causes of air pollution in the China, including in the Bejing-Tianjin-Hebei
region.
He believes that the funding from ADB will enable AGE and
SGE to significantly expand in the fight against air pollution while providing
much-needed clean heating to the citizens in the China.
SGE Chairman and Sinopec Star Vice President Liu Shiliang
also expressed hopes that the successful collaboration with ADB on sustainable
geothermal development can be replicated across Asia to fight against air
pollution and reduce greenhouse emissions.
Established in 1966, the Manila-based ADB is
dedicated to reducing poverty in Asia and the Pacific through inclusive
economic growth, environmentally sustainable growth, and regional integration.
It is owned by 67 members – 48 from the region.
