Exploitation of Vast Natural Heat Resources Underground in China

Sinopec, China's large state-owned energy company, has drilled hundreds of wells across the country in search of oil, but its efforts have been completely fruitless. However, these wells, which reach depths of one mile, although they did not lead to oil, are ready to deliver natural geothermal heat to homes. According to Agence France-Presse, while two-thirds of China's electricity needs are met by burning coal in power plants, the heat required for almost all homes in an area in northern China with a population of 400,000 is supplied from wells 1500 meters deep. The geothermal section manager of Sinopec in this area states that this process depends on the circulation of flowing water. He says, 'Water is pumped into these underground wells and after reaching a temperature of about 70 degrees Celsius, it is directed into the heating system.' Although China is tapping into vast underground thermal resources, a large portion of these resources, which account for less than half a percent of the country's energy consumption, remains untapped. Sinopec's geothermal projects account for over 40 percent of the total number of homes in China powered by geothermal energy. In 2009, Sinopec and the Icelandic company 'Arctic Green Energy,' recognized as a leader in harnessing geothermal energy, invested $58 million in this project in northern China, resulting in the drilling of about 70 wells. According to a Sinopec official, Iceland has unique resources with temperatures reaching 250 degrees Celsius, which can be used to power plants. In China, the internal temperature of wells rarely exceeds 150 degrees Celsius, which is ultimately suitable for home heating systems. Sinopec, which has been affected by falling oil prices and slowing economic growth in China in recent years, has increased investment in renewable energies including solar, wind, and geothermal energy. The company has geothermal facilities in 16 provinces of China capable of heating homes and factories with a total area of about 40 million square meters, preventing the emission of about 3 million tons of carbon dioxide into the air. This capability could have a significant impact on reducing air pollution that has affected many parts of northern China. Sinopec claims to have transformed the area into China's first smoke-free city by eliminating coal-based heating systems that are prevalent throughout the country. Sinopec plans to create twenty more smoke-free cities in the country by 2020. The company's goals include a tenfold increase in geothermal resources, growing electricity generation from geothermal sources to 530 megawatts by 2020, and tripling the area of buildings heated by geothermal energy. The director of the Energy Research Center at Xiamen University is not optimistic about the success of this project. He states that while geothermal energy is clean, its costs are much higher than wind and solar energy, and it may not succeed without government support.