GE Announces $100 Million Joint Venture in China to Grow Aeroderivative Gas Turbine Sector
SHANGHAI, CHINA—August 23, 2011—GE (NYSE: GE) and China Huadian Corporation today announced a joint venture to develop distributed energy combined heat and power (DECHP) projects that will provide electricity for consumers in China located close to the plants. GE is a leader in DECHP and other innovative energy solutions. Today’s announcement will help ensure continued U.S. energy leadership by expanding markets for American technology and services.
The $100 million joint venture company will be called Huadian GE Aero Gas Turbine Equipment Co., Ltd, with China Huadian owning the majority share. It will create opportunities for growth and further investment in GE aeroderivative gas turbines and services, accelerating growth in China while expanding capacity and capabilities.
“The joint venture agreement is another example of GE’s continued commitment to global relationships to meet the energy needs of today and tomorrow,” said Darryl Wilson, president and CEO—aeroderivative gas turbines for GE Power & Water. “The goal of this joint venture is to support the people of China by helping the country meet its need for more than 1,000 distributed energy combined heat and power plants in the next 10 years, while also supporting the U.S. energy technology industry. The joint venture is part of GE’s larger U.S.-China strategic relationship that will be a powerful spur to economic growth in both countries, enhance market confidence and encourage the rest of the world to follow in next generation of energy deployment.”
GE’s aeroderivative business, headquartered in Houston, Texas, brings power to hard-to-reach places by modifying highly reliable GE aviation engines to burn natural gas or biofuels to create energy. These power generation units range from 18-100 megawatts and represent the future of efficient and cleaner power generation. The highly flexible jet engine-based technology helps energy companies take advantage of the growing trend to use abundant, cleaner-burning natural gas for power generation.
DECHP technologies produce both electricity and useful thermal energy from a single fuel at a facility located near the consumers. These efficient systems recover heat that normally would be wasted in the power generation process—saving fuel that would otherwise be used to produce additional heat or steam in a separate unit.
Dozens of American suppliers from locations including Cincinnati and Cleveland, Ohio, Fort Collins, Colo., Portland, Ore., and Houston and Lufkin, Texas, will support the projects in China.
Today’s joint venture announcement between China Huadian Corporation and GE is part of a larger-scale commitment GE has made to China. Most recently:
• On November 9, 2010, GE announced plans to invest more than $2 billion into its efforts in China through 2012 to help tackle the country’s pressing energy and infrastructure needs. GE Chairman and CEO Jeff Immelt announced that the company plans to commit $500 million to enhance China R&D capabilities and establish new Customer Innovation Centers to better serve west, north, central and south China.
• On that same day, as part of the $2 billion investment, GE and State Grid Corporation of China (SGCC), China’s top power distributor and one of the world’s largest utilities, announced plans for several joint ventures to address China’s growing energy needs and to electrify its vast transportation infrastructure. These joint ventures will play a vital role in supporting the country’s energy demand through the development of a smarter grid that will help achieve environmental and economic goals.
• On January 5, 2011, GE announced that it had signed a contract with Jiangsu Tianue Energy & Chemical Group Co. Ltd, which is building a high-efficiency gas turbine power plant to utilize industrial dismissed gas into power and steam to meet increasing energy needs in the region. The power plant will be equipped with three aeroderivative gas turbines, which are the first LM2500+G4 units sold in China. GE’s aeroderivative gas turbines will use coke oven gas as fuel and turn it into electricity for the region.
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
GE also serves the energy sector by providing technology and service solutions that are based on a commitment to quality and innovation. The company continues to invest in new technology solutions and grow through strategic acquisitions to strengthen its local presence and better serve customers around the world. The businesses that comprise GE Energy—GE Power & Water, GE Energy Services and GE Oil & Gas—work together with more than 90,000 global employees and 2010 revenues of $38 billion, to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; as well as other alternative fuels and new grid modernization technologies to meet 21st century energy needs.