New Power Plant Uses GE Aeroderivative Gas Technology to Help Italy Achieve Its Energy Goals

MILAN—February 25, 2011—TEI S.p.A., a leading Italian environmental engineering company, has purchased an LM6000 aeroderivative gas turbine from GE (NYSE: GE) for a second combined-cycle power plant to be located in the Chianti region of Italy, near Tuscany. This project follows the...

New Power Plant Uses GE Aeroderivative Gas Technology to Help Italy Achieve Its Energy Goals

MILAN—February 25, 2011—TEI S.p.A., a leading Italian environmental engineering company, has purchased an LM6000 aeroderivative gas turbine from GE (NYSE: GE) for a second combined-cycle power plant to be located in the Chianti region of Italy, near Tuscany. This project follows the success of the first mid-merit project between the two companies, which is located in the Friuli Venezia Giulia region. Earlier this month, GE announced that it has shipped its 1,000th LM6000 gas turbine, which has more than 20,000 million hours of operational experience.

Mid-merit units are modern, efficient power plants that can come online quickly in response to increases in the demand for power. The plant will be operated as a "merchant" facility, meaning that it sells power into the spot market rather than having a long-term contract for the output.

“In alignment with the needs highlighted by the business and by Terna, the National Grid operator, we are committed to investing in a flexible plant to meet current levels of demand in real time,” said Vincenza Vadacca, managing director, Tei SpA “Moreover, this will allow for an increase in power generation from renewables and not planned/programmed sources.”

This project will allow TEI S.p.A. to further support the European Union’s 20/20/20 initiative to combat climate change and increase energy security. GE’s innovative aeroderivative technology is highly efficient, reliable and flexible, allowing customers to increase productivity and cut energy costs.

At the heart of the new, 50-megawatt (MW), combined-cycle plant, which will be operated by VOLTA, is a GE LM6000-PF aeroderivative gas turbine generator package. GE Oil & Gas is supplying a Thermodyn steam turbine for the project. The plant is owned by VOLTA srl, which is a company created by SACCI and TEI.

“Our LM6000-PF aeroderivative gas turbine features high efficiency, superior fuel gas consumption and fuel flexibility, coupled with lower emissions and water usage in both the 50 and 60 Hz segments. It is approved under ecomagination, GE’s commitment to invest in a future that creates innovative solutions to global environmental challenges,” said Darryl Wilson, vice president—aeroderivative gas turbines for GE Power & Water. “In addition, the LM6000-PF is the industry leader in the 35-60-MW range, with environmental and operational benefits that allow our customers to meet and, in some cases, exceed governmental regulations while providing full generating capacity within 10 minutes.”

GE’s LM6000-PF has the highest reliability (more than 99 percent) and availability (more than 97 percent) in its range. It has high fuel efficiency, versatile operational flexibility and proven dry low emissions technology that can guarantee nitrous oxide (NOx) emissions as low as 15 ppm. The higher efficiency enables lower fuel consumption per unit of power output than competitive technologies, yielding fuel cost savings and NOx and carbon dioxide (CO2) reductions for turbine operators.

When compared to a typical simple-cycle gas turbine in the 35-60 MW range, operating at 50 Hz with 35 ppm NOx, GE’s LM6000-PF avoids 15,000 metric tons of CO2, equivalent to the annual CO2 emissions of more than 7,600 cars on European Union roads. It also can reduce natural gas consumption by more than 278,000 gigajoules (GJ), equivalent to the amount of natural gas consumed annually by more than 7,600 Italian households, which can yield annual fuel cost savings of €1.9 million at €5 per GJ.

In addition GE's LM6000-PF dry low emissions technology eliminates the need of water as a diluent, avoiding the use of over 50,000 cubic meters of water for a typical 4,000 hours of mid-merit operation. This is equivalent to the amount of water needed to fill 20 Olympic-size swimming pools.

The LM6000-PF aeroderivative gas turbine generator package is scheduled to be shipped in the first quarter of 2011 with commercial operation planned for the third quarter of 2011. The steam turbine from GE Oil & Gas will be commissioned in 2012.

About TEI Group

From its initial role as an importer of electricity into the wholesale Italian Power Market 10 years ago, TEI Energy SpA has expanded its business to encompass thermal and photovoltaic generation, Merchant Line or Interconnector development as well as wholesale power trading across Europe and retail sales to industrial end consumers in Italy.

TEI Energy SpA has its headquarters in Italy with offices in Germany, Greece and Slovenia. All its trading business is carried out within the European Union and Switzerland, with approximately half of its activities in the Italian market.

About GE

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 serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With more than 90,000 global employees and 2010 revenues of $38 billion, GE Energy www.ge.com/energy is one of the world’s leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy—GE Power & Water, GE Energy Services and GE Oil & Gas—work together 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; and other alternative fuels.

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