Sinopec's First Geothermal Power Pilot Project Successfully Connected to Grid

Sinopec Star Co., Ltd., a clean energy subsidiary of China Petroleum & Chemical Corporation (Sinopec), has received the grid access permit for its medium and deep geothermal power generation pilot project in Xianyang, Shaanxi Province. This significant milestone marks Sinopec’s first entry into geothermal electricity production, with the project now officially connected to the grid and generating power. Additionally, it represents China’s first pilot project combining thermoelectric power generation with helium extraction, offering a major advancement in geothermal resource utilization and energy diversification.

The project is located in Xianyang, within the Guanzhong region, known for its large, high-temperature, sedimentary geothermal field, which has excellent water quality. The geothermal well selected for the project is located in the Baoshi Jiayuan community, with a depth of 3,000 meters and a wellhead water temperature of about 102°C. During the heating season, the project extracts geothermal water for district heating and simultaneously extracts helium for low-load power generation. In the non-heating season, the facility operates at full capacity, generating power while continuing to extract helium. The project heats an area of 120,000 square meters and generates an annual total of 700,000 kWh of electricity.

The facility also plays a critical role in the extraction of helium, often referred to as the “golden gas,” which is highly valuable and used in various industries such as aerospace, research, healthcare, and industrial production. China has long relied on imports for its helium supply, which is typically sourced from natural gas, coal bed methane, and air separation unit by-products. However, Sinopec Star has developed the core technologies required for helium extraction directly from geothermal wells, positioning the company as a leader in this emerging field. Helium is of strategic importance, and its industrial extraction is critical for reducing reliance on foreign imports.

The project area, located in the water-rich Weihe Basin, is particularly rich in both water-soluble and free helium, along with other gas resources. Sinopec experts have found unusually high concentrations of helium in the region's geothermal wells. The company has also advanced techniques for the separation and purification of water-soluble helium, achieving 99.99% purity through membrane separation and variable pressure adsorption technologies. This breakthrough has significant implications for the industrial-scale production of geothermal water-soluble helium and positions Sinopec to meet China’s growing demand for this valuable resource.

Sinopec has a long history of leadership in geothermal energy development, having established over 100 million square meters of geothermal heating capacity across 72 cities in China. Its Xiong’an New Area project has also been recognized by the International Renewable Energy Agency (IRENA) as a global showcase for renewable energy innovation. The Xianyang geothermal power project represents another step forward in Sinopec's commitment to advancing China’s energy transition and diversifying its renewable energy portfolio.