Sinopec, the Chinese energy company and Glitnir, the Nordic Bank signed an agreement to further develop their relationship in the field of geothermal energy development in China with support from Geysir Green Energy and Reykjavik Energy Invest; world leading geothermal investment companies, Iceland Review reported. The aim of the agreement is to increase the use of geothermal as a renewable energy source in China. Both firms will boost 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. Under the terms of the agreement, Sinopec and Glitnir confirm their intention to continue providing such leadership role in developing more green energy in China, in the form of geothermal energy. This was announced in the presence of the President of Iceland, HE Olafur Ragnar Grimsson, Sinopec’s Group Executive Vice President, Li Chunguang and Magnus Bjarnason, Glitnir’s Executive Vice President of International Banking.Since 2005, Glitnir and Sinopec have worked jointly and both parties are pleased with the outcome of their partnership. After several discussions on how such cooperation could be developed further, both companies decided 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 utilisation 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 percent of total generation in China. Governments of both countries support increased cooperation between the two countries in the field of geothermal energy utilisation. 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. 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 utilisation of geothermal energy.