SOURCE: Glitnir

October 09, 2007 08:06 ET

Sinopec and Glitnir to further develop geothermal potential in China

REYKJAVIK, ICELAND--(Marketwire - October 9, 2007) -

Shanghai, China/Reykjavik, Iceland - October 9th 2007 - Sinopec, the Chinese energy company, and Glitnir, the Nordic Bank, have agreed to further develop their relationship in the field of geothermal energy development in China with support from Geysir Green Energy and Reykjavík Energy Invest; world leading geothermal investment companies. The purpose of the agreement is to increase the use of geothermal as a renewable energy source in China. The two companies will strengthen ties between them by upgrading investment scale and developing the technology involved in individual projects, as well as explore new opportunities, both in district heating and energy generation, nationwide in China.

Glitnir and Sinopec have worked together on projects since 2005 and both parties are very satisfied with the outcome of their partnership. For the past months, the companies have had discussions on how such cooperation could be developed further. As a result of these discussions, it is the intention of the two companies to jointly set up a company with capabilities to develop geothermal and other renewable assets in China. This comes in addition to the Xianyang geothermal project that has been under development by the two companies and it's partners since 2005.

The utilization of geothermal energy presents an environmental friendly, efficient and viable alternative to the traditional form of energy generation in China, namely coal, which accounts for more than 70 per cent of total generation in China.

Governments of both countries support increased cooperation between the two countries in the field of geothermal energy utilization. There is an increasing demand for new renewable energy sources in China and Glitnir and Sinopec have been pioneers in the development of geothermal energy in China. With this agreement, the two companies confirm their intention to continue providing such leadership role in developing more green energy in China, in the form of geothermal energy.

This announcement is made in the presence of the President of Iceland, HE Ólafur Ragnar Grímsson, Sinopec's Group Executive Vice President, Mr. Li Chunguang and Mr. Magnús Bjarnason, Glitnir's Executive Vice President of International Banking.

For further information:
Magnús Bjarnason, Executive Vice President for International
Phone +354 844 4523
Jiang Zhu, Director & Chief Representative, China, mobile: +86 21
5882 5088
Bjørn Richard Johansen, Managing Director, Corporate
Glitnir. Phone: +47-47 800 100. E-mail:

For photos: E-mail:

About Sinopec

China Petroleum & Chemical Corporation (hereafter referred to as "Sinopec") is a listed company on domestic and international stock exchanges with integrated upstream, midstream and downstream operations, prominent core businesses and a comprehensive marketing network. The Company was set up on 25th February, 2000 by China Petrochemical Corporation (Sinopec Group) as the sole initiator; pursuant to the Company Law of the People's Republic of China.Sinopec is an integrated energy and chemical company. The scope of its business mainly covers oil and gas exploration, development, production and marketing; oil refining; production and sales of petrochemicals, chemical fibers, chemical fertilizers and other chemical products; storage and pipeline transportation of crude oil and natural gas; import, export and import/export agency business of crude oil, natural gas, refined oil products, petrochemicals, chemicals, and other commodities and technologies; research, development and application of technology and information. It is China's largest producer and supplier of oil products (including gasoline, diesel and jet fuel, etc.) and major petrochemical products (including petrochemical intermediates, synthetic resin, synthetic fiber monomers and polymers, synthetic fiber and chemical fertilizer). It is also China's second largest crude oil producer.

About Glitnir

The financial group Glitnir offers universal banking and financial services, with the Nordic region as its home base. Glitnir is a leading niche player in three global industry segments: seafood/food, sustainable energy, and offshore services vessels. The group's services include retail, corporate and investment banking, stock trade/brokerage and capital management. Glitnir considers Iceland and Norway as its home markets. The Glitnir group has operations in Iceland, Norway, Sweden, Denmark, Finland, the UK, Luxembourg, Russia, USA, Canada and China. Glitnir is listed on the Icelandic Stock Exchange. For more information see

About Reykjavik Energy Invest

Reykjavik Energy Invest (REI) ( is the Reykjavik Energy (Orkuveita Reykjavikur) international business development and investment arm. We bring Reykjavik Energy's expertise to our partners and investments by focusing on creating partnerships to develop geothermal areas. REI invests in geothermal exploitation rights as well as site development, construction and operation of geothermal fields, and seeks to acquire geothermal plants currently in operation. Reykjavik Energy is the world's leading authority in the utilization of geothermal energy. We have consolidated our leadership over the past 60 years by supplying a large portion of the Icelandic population with geothermal water for domestic heating and by gradually developing new steam fields for power production. For more information:

About Geysir Green Energy

Geysir Green Energy is a leading investment company within the geothermal industry, investing in developing projects as well as geothermal operations. Geysir has since its foundation in January 2007 invested around USD 650 million in geothermal companies and projects around the world. Building on the extensive experience of Icelandic geothermal companies, Geysir has received great attention within the industry and is being recognized as a serious and dynamic investor in the field. For more information:

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