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REYKJAVIK: Chinese Premier Wen Jiabao, a geologist by training, was Saturday to visit Iceland's largest geothermal plant after touring a national park and viewing one of the country's best-known geysers.

The premier, who arrived Friday at the start of a European tour which will also take him to Sweden, Poland and Germany, voiced "strong support" for moves to develop geothermal energy in his own country after both countries Friday signed a cooperation deal on this issue, Iceland's presidency said.

This followed talks between Wen Jiabao and Iceland President Olafur Ragnar Grimsson in which the Chinese leader thanked his host for backing his country's request for permanent observer status on the Artic Council, an eight-country inter-governmental forum.

China now has simple observer status on the council which groups Iceland, Denmark, Norway, Sweden, Finland, Russia, Canada and the United States.

On Saturday, Wen, accompanied by Iceland's Foreign Minister Ossur Skarphedinsson, was to visit the Hellisheidarvirkjun geo-thermal plant, on a volcanic ridge near Reykjavik.

He earlier toured the Thingvellir national park and saw the Gullfoss falls and the Geysir geyser.

China's interest in Iceland came to the fore last year when a Chinese property tycoon tried to buy a large swathe of land in the north of the country for a tourism project.

Some observers suggested property magnate Huang Nubo's purchase would help China win a foothold in the oil-rich Arctic, amid general concern over Chinese investment in Europe.

That deal was eventually blocked by the Icelandic government, after officials said China had mooted using the island as a trans-Arctic shipping port.

Retreating ice has opened up the potential for a shorter cargo shipping route with Asia, which would cut the sea voyage between Shanghai and northern Europe by some 6,400 kilometres (4,000 miles).

Wen's visit to Iceland is the first by a Chinese premier.

Copyright AFP (Agence France-Presse), 2012

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