$100 Million Joint Venture to Accelerate Growth in China

August 23, 2011 / William Thomson, Green Homes Expert

GE (NYSE: GE) and China Huadian Corporation have inked 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.

$100 Million Joint Venture to Accelerate Growth in China

GE’s announcement will help ensure continued U.S. energy leadership by expanding markets for American technology and services.

Today’s joint venture announcement between China Huadian Corporation and GE is part of a larger-scale commitment GE has made to China.

On November 9 last year, GE announced plans to invest more than $2 billion into its efforts in China through 2012 to tackle the country’s pressing energy and infrastructure needs. GE Chairman and CEO Jeff Immelt announced the company’s plan 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.

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.

Previously, GE Energy released its new platform of Multilin Distribution Automation (DA) Controllers: Voltage Regulator Controller, Capacitor Bank Controller and Field RTU, key building blocks of GE’s (NYSE: GE) advanced distribution automation solutions that enable utilities to optimize voltage levels, reduce power losses, and decrease outage duration.

Darryl Wilson, president and CEO—aeroderivative gas turbines for GE Power & Water, said: “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 far-flung places through modification of 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 would normally be wasted in the power generation process—saving fuel that would otherwise be used to produce additional heat or steam in a separate unit.

American suppliers from locations including Cincinnati and Cleveland, Ohio, Fort Collins, Colo., Portland, Ore., and Houston and Lufkin, Texas, have expressed their support for the projects in China.

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.

Articles other readers have found interesting...

Top News Stories:

Leave a Reply