China signs deal with Iceland to develop geothermal energy

The Chinese have signed a deal with Iceland to increase co-operation over the development of geothermal energy. China's Premier Wen Jiabao concluded the agreement last weekend during the first stage of a four-nation European tour. As a trained geologist, Wen toured the Thingvellir national park, home to popular tourist attractions the Gullfoss falls and the Geysir geyser. While visiting a geothermal plant, the premier voiced "strong support" for efforts to tap geothermal energy back home in China. The talks, during what is the first visit by a Chinese premier to Iceland, also yielded accords covering cooperation in marine and polar science and technology and solar energy. During a visit to a geothermal power plant on an active volcanic ridge, he told students in a spontaneous 10-minute speech that more needed to be done about global warming. A deal already exists between Iceland's Orka Energy company and the Chinese firm Sinopec, to develop geothermal energy in China. Chinese interest in Iceland recently emerged when Chinese property magnate Huang Nubo tried to buy a large portion of land in the north of the country. Suspicion was voiced that the purchase might help China win a foothold in the region and the deal was eventually blocked by the Icelandic government.