Arctic Green Energy secures $200m in funding for geothermal work in China
Arctic Green Energy has secured $200 million in new equity funding through an institutional investor with the funding earmarked for further geothermal development in China.
Arctic Green Energy, developer and operator of geothermal district heating projects, has announced the successful completion of a US$ 200 million strategic, structured investment by a leading global institutional investor. This funding round is dedicated to the company’s investment in its venture with Sinopec in China, Sinopec Green Energy (SGE). SGE is the world’s largest and fastest growing geothermal district heating company and a clear market leader in the China geothermal district heating market.
SGE is making significant contribution to decarbonization and improved air quality. The rapid growth of the company is contributing to and consistent with China’s recent announcement to reach carbon neutrality by 2060. Geothermal energy is a renewable, economically competitive and sustainable alternative to the use of fossil fuels for heating and cooling.
Haukur Hardarson, Chairman and Founder of Arctic Green Energy said: “This investment marks the beginning of an exciting partnership between Arctic Green and a leading global institutional investor who shares our enthusiasm for the potential of geothermal energy to provide heating and cooling solutions to cities and towns. We look forward to working with their team as we continue to expand our business in China”
J.P. Morgan acted as the Sole Placement Agent to Arctic Green Energy for the transaction.
Arctic Green Energy has been specialising in the various applications of geothermal energy, from district heating and cooling to power generation. The company is also expanding into co-generation with other renewable energy sources and has established university level programs to train new generations of geothermal experts. Based in Singapore and with operations in China and Europe, Arctic Green Energy has its roots in the well-established geothermal sector in Iceland and maintains a knowledge center there.
Source: company release