Sinopec's First Geothermal Power Production Pilot Project Connects to Grid

Rhea-AI Summary

Sinopec Star, a clean energy subsidiary of China Petroleum & Chemical (HKG: 0386), has launched its first geothermal power generation pilot project in Xianyang, Shaanxi Province. The project marks China's first thermoelectric helium integration initiative, featuring a 3,000-meter deep geothermal well with 102°C wellhead water temperature. The facility provides heating for 120,000 square meters and generates 700,000 kWh annually. Sinopec Star has developed technology to extract 99.99% pure helium from geothermal wells, addressing China's reliance on helium imports. The company currently operates geothermal heating systems in 72 cities, covering over 100 million square meters.

Positive

• Successfully connected first geothermal power generation project to grid
• Achieved 99.99% pure helium extraction capability
• Facility generates 700,000 kWh annually
• Provides heating for 120,000 square meters
• Operates in 72 cities with over 100 million square meters of geothermal heating capacity

Negative

• None.

XIANYANG, China, Nov. 5, 2024 /PRNewswire/ -- Sinopec Star Co., Ltd., a clean energy subsidiary of China Petroleum & Chemical Corporation (HKG: 0386, "Sinopec"), has received  the grid access permit for its medium and deep geothermal power generation pilot project (the "Project") in Xianyang, Shaanxi Province, which is officially connected to the grid to produce power.

The Project, which is now connected to the grid and generating power, marks Sinopec's first foray into geothermal electricity production and represents China's inaugural pilot of thermoelectric helium integration—a significant stride toward enhancing the utilization of geothermal resources and optimizing the nation's energy mix.

Located in Xianyang in the Guanzhong region, where there is a large medium-low temperature sedimentary basin-type geothermal field known for large scale, high temperature, and superior water quality, the project has selected a geothermal well in Baoshi Jiayuan community with a depth of 3,000 meters and wellhead water temperature of around 102 degrees Celsius.

During the heating season, the project extracts geothermal water for heating and simultaneous helium extraction for low-load power generation. In the non-heating season, it operates at full load for continuous power generation, also extracting helium. The facility heats an area of 120,000 square meters and generates 700,000 kWh annually.

Sinopec Star has tackled the core technologies to extract the "golden gas" – helium - in geothermal wells, which is of great strategic importance and widely applied in numerous fields, including  aerospace, R&D, healthcare, and industrial productions. As a major manufacturing country, China has a high demand for helium, but has long relied heavily on imports. Helium is mainly extracted from natural gas, coal bed methane, and by-products of air separation units that contain helium.

Located in the Weihe Basin, the project area is rich in water-soluble and free helium, along with other gas resources. Sinopec's experts have discovered unusually high helium concentrations in the region's geothermal wells. At its Xianyang site, Sinopec Star has advanced the separation and purification of water-soluble helium, achieving 99.99% pure helium through membrane separation and variable pressure adsorption technologies. This success has provided insights for the industrial-scale production of geothermal water-soluble helium.

Sinopec is a leader in advancing geothermal development, having established more than 100 million square meters of geothermal heating capacity in 72 cities throughout China. Its project in the Xiong'an New Area has been recognized by the International Renewable Energy Agency (IRENA) as a global showcase pilot.

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SOURCE SINOPEC

FAQ

What is the annual power generation capacity of Sinopec's (SNPTY) new geothermal project in Xianyang?

The geothermal power project generates 700,000 kWh annually.

What is the helium purity level achieved by Sinopec (SNPTY) at its Xianyang geothermal facility?

Sinopec Star has achieved 99.99% pure helium through membrane separation and variable pressure adsorption technologies.

How many cities does Sinopec's (SNPTY) geothermal heating system cover in China?

Sinopec operates geothermal heating systems in 72 cities throughout China.

What is the depth of Sinopec's (SNPTY) geothermal well in Xianyang?

The geothermal well in Baoshi Jiayuan community has a depth of 3,000 meters.