According to international media company Bloomberg, Iceland has recently signed a 250 million USD deal to help China fight pollution by providing the necessary technology to produce clean, geothermal energy.
China’s steady and fast growth in the past few decades has come at a high cost for the local environment. As Chinese authorities have begun sending health inspectors to industries, factories and corporations in order to crack down on pollution, the country is also trying to improve the living conditions of millions of people while avoiding extreme financial sacrifices.
The deal between Sinopec Green Energy and Icelandic company Arctic Green Energy could provide a viable solution to this conundrum. Iceland’s geothermal plants have provided clean and cheap energy to the entire country for decades, despite having often been cause of concern for disfiguring the beauty of precious locations.
According to Haukur Harðarson, the chairman of Arctic Green Energy, his company already holds 35% of the shares in the Chinese geothermal market. With its technology, however, Arctic Green could help five times as many people as it does now in the next three or four years, considering China’s demands for green energy.
The agreement is in fact expected to affect first and foremost about 15 million people living and working in an area southwest of Beijing. The deal, however, could boost the countries’ technological development, as Icelandic and Chinese experts have joined forces in studying the effects of climate change which could benefit the two countries in the future from both a financial and environmental point of view.