China and Iceland deepen cooperation in geothermal energy

China and Iceland have issued a joint statement committing to enhanced cooperation on geothermal energy development, as both nations look to leverage their distinct geothermal endowments for green energy and climate resilience. China plans to share advanced drilling technologies, reservoir modeling techniques, and expertise in power plant construction to support Iceland’s ongoing geothermal projects, while Iceland will provide insights into sustainable reservoir management, scaling, and reinjection practices.

Under the agreement, China and Iceland will facilitate joint research initiatives, pilot demonstration plants, and exchange of capacity building programs. The partnership includes exploration of high-temperature geothermal systems, co-development of binary and flash power cycles tailored to local geology, and potential collaboration in geothermal applications such as direct heating, district energy, and desalination. China will also assist Iceland in examining geothermal resource potential in underexploited fields and integrating geothermal power more resiliently into the national.

Iceland is a global leader in harnessing geothermal energy: approximately 20 percent of its electricity and more than 90 percent of its heating demand are met from geothermal sources. The Icelandic state operates several major geothermal sites including the Hellisheiði and Nesjavellir plants, deploying advanced binary and flash systems, reinjection and reservoir pressure management. China, conversely, has abundant geothermal potential across provinces like Tibet, Yunnan, and Sichuan, but has yet to match Iceland’s development scale in high-enthalpy systems. Through this pact, the two nations intend to reduce technology gaps and accelerate sustainable geothermal deployment in both country contexts.

The joint statement includes a timeline for next steps: initiating pilot projects within two years, establishing a bilateral research center in geothermal science, and creating shared training programs. China and Iceland also plan to develop a roadmap for deployment of modular geothermal plants suited to remote or rural areas in both countries.