A $250 Million Jackpot Shows Iceland Is Deepening Its China Ties

  • Iceland to offer technology and know-how in $250m accord
  • Biggest deal with China caps years of geothermal talks

A little north European island known perfect for icebergs, geysers and volcanoes is usually helping China fight pollution.

Iceland just signed the biggest deal in the history to provide the world’ t second-largest economy with the technology it requires to deliver clean, geothermal heat. The particular agreement affects up to 15 mil people in Xiong’ an, a brand new economic area southwest of Beijing established by President Xi Jinping.

With more than 100 volcanoes, Iceland has turned into a world leader in geothermal technologies. The heat produced from the Earth’ h core not only doesn’ t dirty, but is also cheap. So inexpensive, in fact , that Iceland can afford in order to heat sidewalks in its biggest metropolitan areas.

The China offer — a partnership between Arctic Green Energy plus Sinopec Green Energy that comes with $250 million in loans from the Oriental Development Bank — shows that technologies produced in “ small communities could be scaled up in the largest nations in the world, ” said Olafur Ragnar Grimsson, a former Icelandic president that back in 2002 showed Xi’ ersus predecessor the first geothermal power herb ever seen by a Chinese mind of state.

Iceland’ s handle China comes as European authorities fret over the decision by the National People’ s Congress to make Xi the president for life. The European Payment in Brussels is now considering exactly how best to protect its strategic passions from foreign takeovers by state-owned companies.

Arctic Green Energy Chairman Haukur Hardarson says his company’ s i9000 share of the Chinese geothermal marketplace (heatpumps excluded) is about 35 %. Based on the demand coming from Asia, he admits that AGE could service about 5 times as many people in three-four years as it does now.

Scientists from Iceland plus China are also helping each other research climate change. Grimsson says there’ s “ a direct relationship” among extreme weather patterns in Tiongkok and the melting of the Arctic.

“ When I started our presidency, China was a peripheral concern, ” Grimsson said. “ When I left office, in 2016, China had moved to center stage within our cooperation and in our global achieve. ”