WorldWide Drilling Resource

53 WorldWide Drilling Resource ® NOVEMBER 2015 China’s Sleeping Industry Could Wake Up Compiled by Amy White, Associate Editor, WorldWide Drilling Resource ® China’s first geothermal power plant began generating power on December 12, 1970, in the Guangdong province. It was the result of a lengthy national campaign directed by Li Siguang, China’s first minister of geology. With his expertise as a scientist and politician, Li made a successful case for geothermal energy as a significant power source for the country. Under his guidance, ten plants were constructed in eastern China, as well as three more in Tibet. Unfortunately, Li died as these geothermal projects were trailblazing across the country. Having lost their most optimistic advocate, geothermal plants began to close their doors one by one. By 2012, only three plants remained in the country. After lying silent for almost half a century, new government initiatives may bring China’s geothermal industry back to life, providing an opportunity for the country to harvest sub- stantial untapped reserves. Though it is expected to remain a small part of China’s energy mix in the near future, the National EnergyAdministration’s Geothermal Development Plan, which is currently in the works, could spark more interest in geothermal developments. Since drilling for high-temperature reservoirs can be extremely challenging for compa- nies without proper training and equipment, China Petrochemical’s geothermal development division, Sinopec Star Petroleum, has invested over $150 million over the last several years to develop new plants. China has also been observing the success of Iceland’s pioneering geothermal strategies. All of Iceland’s power comes from a combination of hydropower and geothermal energy. As the first European Union member state to sign a bilateral Free Trade Agreement with China in 2013, Iceland has added significance. Beijing has completed the largest em- bassy complex in Iceland’s capital city of Reykjavik, and could employ over 500 staff there. Though Iceland has faced economic woes in the past, as Iceland’s economy bounces back, Beijing hopes to work in collaboration with Reykjavik to tap its own geothermal re- sources. In 2014, China had 28 megawatts of geothermal capacity, but Beijing hopes to meet a target of 100 megawa t t s o f i nstalled capacity by the end of 2015. In comparison, Iceland has about 660 megawatts of installed capacity. China has nearly 1/6 of theworld’s geo- thermal resources, along with staggering energy requirements. The National Energy Administration and Ministry of Land and Resources have been reviewing geothermal development plans from dozens of local governments. Once published, a national plan to guide the de- velopment of geo- thermal resources will cover the years 2016 through 2020. Cur- rently, China’s gov- ernment plans for geothermal energy to make up 1.3% of the country’s energy mix by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