SOURCE: Glitnir

December 04, 2006 04:12 ET

Enex China and Glitnir contributes to clean energy project in China: China's geothermal city opens first phase of new district heating utility

REYKJAVIK, ICELAND -- (MARKET WIRE) -- December 4, 2006 --

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Xian Yang/Shanghai/Reykjavik/Oslo, 4 December 2006 - A consortium of Icelandic/Nordic companies have implemented a new geothermal district heating utility in China, which may become the largest of its kind in the world. The group consists of financer Glitnir and Icelandic power companies, led by Orkuveita Reykjavikur, which now runs the world's largest geothermal district heating system in Reykjavik, Iceland.

Glitnir, the Nordic/Icelandic-Norwegian financial group, has played an instrumental part in ENEX China and the joint venture Shaanxi Green Energy's first phase of building of a new geothermal district heating utility in Xian Yang, China's official geothermal city. On 3 December, the first phase of the utility is officially opened by Iceland's Minister for Foreign Affairs, Mrs. Valgerdur Sverrisdóttir and representatives of the official geothermal city municipally. Geothermal energy is clean and renewable and is recognised in China's energy policy as having great potential to service the needs of China and other countries. The opening in Xian Yang takes place only two days before Glitnir open its representative office in Shanghai, China, the 5th of December.

China's considerable potential in geothermal energy is only beginning to be tapped, and Xian Yang, China's official geothermal city, comprises the center for the development. The geothermal heating system in Xian Yang is the first project of the newly established Shaanxi Green Energy, which is a Joint Venture between Shaanxi Geothermal Energy Development Co. Ltd. (CGCO) and Enex China, in which Glitnir is one of the three main shareholders. The Shaanxi - Enex China partnership has the potential to become the biggest geothermal heating facility in the world.

"I am extremely proud to note that Icelandic knowledge is contributing to keeping Chinese households warm. It is indeed humbling to know that the development of pollution free and sustainable energy resources for heating purposes in China has significant implications not only for China's energy policy, but also world wide," comments Iceland's Minister for Foreign Affairs, Valgerdur Sverrisdóttir.

"Geothermal energy is green energy and the Xian Yang project is a prime example of hand-in-hand economic and environmentally sustainable development. In a world where the signs of major pollution-induced climate change are becoming more and more prevalent, Glitnir is proud to contribute a financial framework to projects that enable a cleaner future environment," said Bjarni Ármannsson, CEO of Glitnir. The visit to Xian Yang happens at the same week as the opening of the banks representative office in Shanghai, China, the 5th of December.

For the past seventy years, Iceland has pioneered the utilisation of this natural and clean energy source. Tapping its plentiful geothermal energy, this volcanic island, situated right on top of the Mid-Atlantic Ridge, has turned a natural hazard into a unique national asset. The financial group Glitnir has coupled Iceland's considerable geothermal energy expertise with entrepreneurship and financial muscle, turning the tiny Arctic nation's niche expertise into an export article of great potential and potency.

"The project in Xian Yang is very important to ENEX-China as it proves the company's ability to utilize its scientific and technical capabilities for improving the environment anywhere in the world," says Asgeir Margeirsson, ENEX chairman and a director at Orkuveita Reykjavikur. "Every day that we utilize geothermal energy instead of burning coals is a good day," Margeirsson adds, referring to the fossil fuel heating the green energy is succeeding in Xian Yang.

"The project is important for the geothermal energy sector in China, and we hope our involvement can be a start of a lot of similar project", says Jiang Zhu, Chief Director & Chief Representative of Glitnir's operation in Shanghai, China.

For further information, please contact: Bjarni Ármannsson, CEO, Glitnir, via phone +47-47 800 100 Magnus Bjarnason, Glitnir's Managing Director Region Asia & Americas in International Corporate Banking, mobile: +354-844 4523 and e-mail: Jiang Zhu, Director & Chief Representative, China, mobile: + 86 139 016 118 75 or telephone; office + 86 21 5882 5088, e-mail: The address of Glitnir's representative office in Shanghai is, Level 8, CitiGroup Tower, 33 HuaYuanShiQiao Road, Pudong Shanghai 200120, P.R. China. Telephone: +86 21 5882 5088 and telefax: +86 21 5882 5388 Bjørn Richard Johansen, Managing Director, Corporate Communication, Glitnir, mobile +47-47 800 100, e-mail: Asgeir Margeirsson, Chairman of ENEX and ENEX China. Mobile +354 617 7720.

About Glitnir

The financial group Glitnir offers universal banking and is a leading niche player in three global segments; seafood/food, sustainable energy, and offshore supply vessels. Glitnir consider Iceland and Norway as home markets. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of a bank in Luxembourg (Glitnir Bank Luxembourg S.A) and banks and financial services companies in Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, and 50.1 percent of Union Gruppen. Glitnir's subsidiary BNbank in Norway recently acquired 45 per cent of the shares in Norsk Privatøkonomi ASA, an independent financial advisory company with 12 branches in key areas of Norway). In Sweden, Glitnir owns the leading Swedish brokerage firm Fischer Partners. Glitnir operates branches in London and Copenhagen and representative offices in Halifax, Canada and Shanghai, China. Glitnir is listed on the Icelandic Stock Exchange. Glitnir recently announced strong profits for the first nine months of 2006, with a return on equity after tax of 41.9 percent. For more information go to: (English), (Icelandic) or (Norwegian).

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About Orkuveita Reykjavikur

Orkuveita Reykjavikur is an independent utility company owned by the City of Reykjavik , the town of Akranes, and the local authorities of Borgarbyggð and Borgarfjarðarsveit. Within its service area, Reykjavik Energy distributes electricity, geothermal water for heating, cold water for consumption, runs sewage systems and a fiber-optic communications network. More than half of Iceland's population resides within the company's service area.

About Enex

Enex is a conglomerate of the Icelandic energy sector, owned by a group of Icelandic companies and organizations, which collectively have several decades of experience spanning a wide range of application and conditions, in the development of geothermal energy and hydropower. The shareholder group, members of which pioneered comprehensive and integrated utilization of geothermal energy, both internationally and domestically, offers novel solutions applicable to geothermal resources of diverse types and properties, and hydropower resources where harsh conditions of climate and nature prevail.

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