The Asian Development Bank will provide a total of $250 million (€202.4 million) in loans to Iceland’s Arctic Green Energy Corporation and Sinopec Green Energy Geothermal Company Limited to expand environmentally sustainable district heating services in the People’s Republic of China.
Coal-based heating is one of the major causes of air pollution in the PRC, including in the Bejing-Tianjin-Hebei region. Goethermal district heating offers an alternative which is sustainable, stable, and cost-competitive to coal and gas and can be integrated into existing networks to replace heat sources.
“This is 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,” said ADB Vice-President for Private Sector and Cofinancing Operations Diwakar Gupta.
“The funding from ADB enables AGE and SGE to significantly expand in the fight against air pollution while providing much needed clean heating to the citizens in the PRC,” said SGE Vice Chairman and AGE Chairman and Founder Haukur Hardarson.
Photo: AGE Corporation Chairman and Founder Haukur Hardarson (left), ADB Vice-President for Private Sector and Cofinancing Operations Diwakar Gupta (center), and SGE Chief Financial Officer Xin Zhao (right) during the signing ceremony.