Caixia Sun, Sinopec Green Energy Geothermal Development Co., Ltd. Iceland Geothermal Conference 2013 March 5-8, 2013, Harpa, Reykjavík

1. Geothermal direct use in three areas of China
World Geothermal Conference (Harpa, Iceland)
Caixia Sun (Susan)
2013.03.07

2. Content
1. Company overview
2. Geothermal technologies
3. Operations and development
4. Concern and support

3. 1. Company overview
• Sinopec Green Energy Geothermal
Development Co., Ltd (SGE),
established in 2006;
• JV between Sinopec Star Petroleum
Co., ltd. (51%) and Icelandic Orka
Energy Holding Co., ltd (49%);
• Main business: invest and operate
geothermal projects and provide
and research geothermal and
energy-saving technologies.
1.1 Profile

4. 1. Company overview
Mainly cover Shaanxi, Hebei, and Shandong provinces, totally built heating area
more than 6 million m2，80 wells, 52 Heat Centrals and 80 km pipelines. Leading
position and the largest company in geothermal industry in China.
1.2 Development area
Hebei area: 2.5 million m2, more than
90% geothermal district heating in
Xiong county with 100% re-injection.
Shaanxi area: 3 million m2, covering 1/3
centralized district heating in Xianyang.
Shandong area: 300,000 m2, started
since 2011, has large developing
potential.

5. 1. Company overview
Following the principle of “overall planning, step by step implementation,
scientific development and environmental friendly”, applying advanced
geothermal know-how to change the old and backward condition, to realize
sustainable development and improve quality of local people’s life.
1.3 Development concept

6. 1.4 CDM
• Xianyang geothermal district heating
project has successfully registered by
UNFCCC , the first geothermal heating
CDM project in the world;
• Hebei project has also been approved by
NDRC, other projects are smoothly in
progress.
1. Company overview

7. Geothermal distribution in China
2. Geothermal technologies
2.1 Resource evaluation system
• System of preliminary resource evaluation and optimized selection of potential
area established;
• Successfully evaluated and selected geothermal area in Rongcheng of Hebei
and Laoling of Shandong;

8. 2.2 Exploration and drilling
Regarding to different reservoir, geothermal
drilling method system established.
2. Geothermal technologies

9. Limestone reservoir: 100% geothermal natural
re-injection conducted in Xiong county and
Rongcheng county through scientific guidance
and operation procedure, effectively slow down
the water level declining.
2. Geothermal technologies
2.3 Re-injection

10. • Sandstone reservoir: First re-
injection test conducted in Xianyang
funded by Sinopec research project,
through perforating and fracturing,
the present reinjection volume is
about 50 m3/h, initial achievement;
• Re-injection research team
established to specified study re-
injection problem to maintain
sustainable development.
2. Geothermal technologies
陕西咸阳回灌一号井回灌现场
2.3 Re-injection

11. Regarding different conditions, cascaded geothermal utilization system
implemented in various sites, connecting both radiator system and floor
heating system.
Drilling Re-injection
Reservoir
management
Heat
exchange
process
Monitori
ng
system
Peak load
boiler
Distribution
system
Metering system
End users
2. Geothermal technologies
2.4 Cascaded geothermal utilization

12. • Renew old radiator system to new type and enlarge the radiator area to optimize
the entire heating system;
• The preferable end user system is floor heating.
2. Geothermal technologies
2.5 End user facility modification

13. • Shallow geothermal
resource can be widely used
by ground source heat
pump technology to provide
heating, cooling and hot tap
water for different types of
buildings.
• Booming development in
China and large market
potential.
Demo project in Xianyang Hospital GSHP project
2. Geothermal technologies
2.6 Ground source heat pump

14. Purification of geothermal water system
Apply purification technology to treat discharged geothermal water
to be mineral water, direct drink water or normal water, etc.
Realizing geothermal water recycling and environmental friendly
discharge.
2. Geothermal technologies
2.7 Purification of geothermal discharge water

15. There’s high geothermal potential in Tibet and Sichuan province, planned project
to apply flash cycle and ORC cycle with different working fluids.
2. Geothermal technologies
2.8 Geothermal power generation

16. 3. Operations and development
3.1 Shaanxi area operation
• Operated since 2006;
• 22 wells, 17 HCs and 26 small HCs to provide 3 million m2 district
heating(residential and commercial), 1/3 of centralized heating areas in
Xianyang;
• Signing development agreement with Xian, Qinhan New City, Konggang New
City, Xingping, Sanyuan, Jingyang, etc.
Signing ceremony with Xian-Xianyang new cityCompany establishment ceremony Geothermal well location map

17. Decommissioned coal heating facility in Xianyang
3.1 Shaanxi area operation
• Replacement of old coal boiler system by geothermal district
heating system;
• Sandstone reservoir, temperature 70-110 degree, 80-120 m3/h;
• Geothermal district heating system combined with heat pump and
gas boiler system;
• Standardization of each heat central including designing,
construction and operation, etc.
• Implementation of CERs underway. The operation reduces CO2
emissions by over 67,000 tons annually.
New geothermal heating facility in Xianyang

18. 3.1 Shaanxi area operation
Heat Centrals:

19. Signing ceremony in Xiong county in 2009
• Operated in Xiong county since 2009;
• 45 wells, 22 HCs to provide about 2.5 million m2. More than 90% heating in
Xiong county supplied by geothermal realizing smoke-free city;
• 100% re-injection in new operations;
• New projects started in Rongcheng county 2012, agreement signed with
Baoding Municipality and its 14 counties.
First well drilling ceremony in Rongcheng county
3. Operations and development
3.2 Hebei area operation

20. 3.2 Hebei area operation
• Geothermal overall planning compiled in 2009 once launched in
Xiong county.;
• Limestone reservoir, temperature 60-80 degree, 150-200 m3/h;
• Cascaded use of geothermal providing both space heating and
domestic hot water.
• The operation reduces CO2 emissions by over 95,000 tons
annually.
高/低温
区
采暖用户
软化水设备
自来水
60℃ 45℃
40℃45℃
30℃
25℃30℃
换热器2#
换热器3#
45℃
回灌井
低温区
采暖用户
蒸发器
冷凝器
热泵机组
75℃ 55℃
45℃60℃
高温区
采暖用户
生产井
换热器1#
软化水箱
Well and HC distribution map in Xiong county Typical district heating system schematic

21. Exterior of standardized heat central Interior standardized heat central
Old pumping facilities
3.2 Hebei area operation
Heat centrals:
New heat central facilities

22. • Operated since 2011;
• Present heating area is 300,000m2;
• Sandstone re-injection is the bottle-neck difficulty, test
undergoing;
• Planning to sign agreement with Heze, Zibo, Dongying and
Weifang, etc.
Signing ceremony in Shanghe county Heze delegation visit Shandong project
3. Operations and development
3.3 Shandong area operation

23. 3.3 Shandong area operation
• Sandstone reservoir, temperature 50-55 degree, 150-200 m3/h;
• To maximize the use of geothermal by cascaded system;
• Re-injection test has been conducted for this heating season.
The flow rate is about 30 m3/h.
Interior of standard heat central Re-injection facilities

24. • Promote geothermal development
throughout the country to realize
geothermal industrialization and
leap type development;
• Become one of the main business
of Sinopec Group and the leading
geothermal company with top-
ranking geothermal strength in
the world.
• Expanding business as an ESCO.
30 million heating m2 by 2015,and 100 million m2 by
2020, and enlarge scale of geothermal power generation
projects.
3. Operations and development

25. Concerns from the state leaders of China and Iceland, as well as all levels of
government attach the great importance to the geothermal projects.
4. Concern and support
President Hu and President Grimson
meeting in Shanghai
Premier Wen and President Grimson
meeting in Beijing

26. Chinese Embassador to Iceland visited
Xianyang project in 2009
Joint Venture signing ceremony witnessed by two
state leaders of China and Iceland in 2012
4. Concern and support
President Grimson visited Xianyang in 2007
Land resource minister visited Xiong
county in 2012

27. Mainstream media has given great attention to the project, rapid
development
4. Concern and support

28. Sinopec Green Energy Geothermal Development Co. ltd.
Tel：029-38113251
Fax：029-38113355
Web：www.cngeg.com.cn
Thank you!