To put in place the spirits of President Xi Jinping’s speeches during his meeting with Icelandic President Tómasdóttir and the Joint Statement Between the People's Republic of China and the Republic of Iceland on Further Strengthening Cooperation in Geothermal Energy and Green Transition, on October 20, Arctic Green Energy, a shareholder of SGE., and Xi'an Municipal Government signed a framework agreement in Iceland to strengthen cooperation in geothermal energy development and utilization. The agreement was signed by Mr. Yang Jianqiang, Standing Committee Member of the CPC Xi’an Municipal Committee and Executive Vice Mayor of Xi'an, and Hordur Hardarson, Board member of Arctic Green Energy Europe, and attended by Xi’an government officials and SGE’s employees.

Under the agreement, the two sides will leverage Xi'an's high-quality geothermal resources and enhance government-enterprise collaboration. Key areas of cooperation include replacing conventional heat sources with medium-deep geothermal energy for heating, developing shallow geothermal systems for combined heating and cooling, utilizing sewage water and waste heat, renovating heating pipe networks, upgrading equipment, and advancing R&D in new technologies. The cooperation aims to significantly expand the use of clean geothermal energy for urban heating, cooling and comprehensive utilization in Xi'an, with the goal of establishing a clean energy supply capacity covering 20 million square meters within five years.

In recent years, SGE has made breakthroughs in wastewater reinjection technologies in Guanzhong Basin's mid-to-deep geothermal sandstone reservoirs. Its business footprints in Shaanxi Province have expanded to Xixian New Area, Zhouzhi County, Lintong District, and urban areas of Xi'an. Through continuous technological upgrades, shallow geothermal GSHP development and the promotion of the "Geothermal+" concept, SGE has secured contracts for heating areas totaling 17.4 million sqm in Xi'an. It has been recognized as an Outstanding Heating Service Provider by the government for multiple years, with several projects being listed as Clean Heating Model Project.