General Electric (GE) China announced today that GE’s ecomagination products and solutions have brought significant growth to GE’s business in China.. In the first three quarters of 2009, GE ecomagination revenues in China reached US $656 million – a 50 percent year-on-year increase from 2008 – which indicates strong confidence by Chinese customers in GE’s ecomagination products and services.
GE Power and Water, Transportation and Aviation have contributed to ecomagination’s strong growth in the first three quarters of 2009 through a series of deals. These businesses have finalized high-level deals with Chinese government bodies and enterprises in areas such as biogas solutions, wind power, clean coal technology, industrial emissions reduction, aircraft engines, locomotives and LED lighting for roadways.
In 2009, GE signed 20 MOUs with central and local government bodies and 10 MOUs with state-owned-enterprises and Chinese universities, the majority of which focus on energy-efficient solutions.
“Ecomagination is a perfect fit for China," said Steve Fludder, GE vice president and head of ecomagination. “GE is helping China enhance economic growth and environmental improvements at the same time. This is the essence of ecomagination. We are honored to have such deep relationships with our Chinese customers and partners, where we are bringing our world leading ecomagination solutions to their operations. Ecomagination is good for their business, and it is good for GE shareholders.”
During United States President Barack Obama’s visit to China, GE and its local partners announced the signing of a series of agreements aimed at strengthening China’s clean energy, transportation infrastructure and green building capabilities contributing to unprecedented Sino-U.S. environmental collaboration and China’s increased sustainable development goals for 2020 preceding the Copenhagen meeting.
Mark Norbom, president and CEO of GE Greater China said, “GE China’s development is rooted in our commitment to localization, regionalization, collaboration and ecomagination. We’re encouraged by our performance in the first three quarters of 2009 and are focused on continuing to increase partnerships with Chinese government bodies and companies, as well as expanding our offerings of products and services for the energy efficiency, new and renewable energy, clean coal technology and water conservation sectors.”
Most recently, GE Energy and Shenhua Group Corporation announced a framework for an industrial coal gasification joint venture to combine GE’s expertise as the world leader in clean coal solutions, including gasification and cleaner power generation technologies, with Shenhua’s expertise in building and operating coal gasification and coal-fired power generation facilities. This deal will work to leverage R&D to develop and popularize “cleaner coal” technology solutions in China, improving cost and performance of commercial-scale gasification and integrated gasification combined cycle (IGCC) solutions.
Doubling investment in ecomagination research and development is one of GE’s key ecomagination commitments. GE has grown its research in cleaner technologies from US $700 million in 2005 to US $1.5 billion by 2010. It has established broad partnerships with Chinese research-focused government bodies and enterprises. In addition, GE’s China Technology Center has forged close ties with local academic institutions to develop its clean environmental technologies in China.
GE started doing business in China as early as 1906 and was considered one of the most active foreign companies in the country at the time. Currently, GE runs 36 wholly owned or joint venture companies in China ranging from manufacturing, service, research and development, financial services and sourcing, with a total workforce of over 13,000. GE is actively involved in China's infrastructure expansion by offering products and technologies in power generation, oil & gas, water treatment, aviation, transportation, healthcare, security, lighting, power distribution and financial TV.
GE Ecomagination Showcase in China
GE Power and Water
Shandong Minhe Program – GE Energy’s Jenbacher gas engine is able to generate electricity and heat via methane fermentation. It helps enterprises to resolve environmental protection problems and generating considerable economic benefits. Shandong Minhe, as the largest breeding poultry farm in Asia, has about 5 million breeding chickens. Three sets of Jenbacher Biogas Engine have been installed there to generate electricity and heat, using up to 300 tons of chicken manure and 500 tons of wastewater every day. Electricity is transmitted to the local power grid and remaining waste is used for fertilizer. This method of using chicken manure creates significant economic benefit for the farm and has greatly improved the local environment.
Deqingyuan Poultry Farm – Deqingyuan Poultry Farm, a large chicken farm in Beijing, is a proud owner of Jenbacher Biogas Engine which helps to generate power and heat from chicken manure. It is a true role model in China’s effort to encourage use of renewable energy and revive the agricultural economy. Now the project is grid-connected for power generation. Jenbacher Biogas Engine generates 14,600 MWh of electricity per year, which will ultimately help to reduce the electricity shortage in the area. Deqingyuan Poultry Farm will save more than USD 1.2 million a year in electricity costs alone.
Henan Liyuan Coking Plant – In October 2009, GE Energy announced that its LM2500+ aeroderivative gas turbine business has entered the low British thermal unit (BTU) gas sector in China with an order from Henan Liyuan Coking Co., Ltd. The gas turbines will burn 100% coke oven gas (COG), which will help the Liyuan Coking Plant reduce emissions and convert low BTU gas to power efficiently. This project, which is GE Energy’s first COG order, will not only fulfill Liyuan’s self power demand, but also will feed the power to the public grids. Annual power generation in the Henan province is about 480 GWh. Using GE’s LM2500+ gas turbines to utilize COG will improve environmental conditions of the Liyuan plant substantially; over 432,000 tons of CO2 emissions will be eliminated while NOx emissions will be reduced to less than 39 ppm. The first unit will be delivered by July 31, 2010, with the second to follow a month later. Commercial operations for the first unit are planned for the fourth quarter of 2010.
Wuxi Meicun Wastewater Treatment – GE recently won the Industrial Water Project of the Year at the Global Water Awards hosted by Global Water Intelligence. The award was given for the GE ZeeWeed MBR technology’s excellence as demonstrated by its implementation at the Meicun Wastewater Treatment Plant located along Taihu Lake in Wuxi. The ecologically important project earned votes from 1,232 senior executives from the international water industry. Meicun Wastewater Treatment Plant incorporates a ZeeWeed Membrane Bioreactor with a capacity of up to 100,000 m3 per day, making it one of the largest MBR treatment facilities in the world. The technology helps limit the amount of nutrients released into the lake from municipal and industrial wastewater.
CSR Qishuyan Locomotive Diesel Engine Joint Venture – GE Transportation announced the formation of a joint venture company with CSR Qishuyan Locomotive Co., Ltd., a unit of China South Locomotive and Rolling Stock Corporation Limited (CSR), to develop, build and service GE’s Evolution® Series locomotive diesel engines in China.
In October 2005, GE Transportation marked the formal beginning of its partnership with CSR Qishuyan by signing a strategic contract with China’s Ministry of Railways to supply 300, 6,250-horsepower Evolution Series HXN5 China Mainline Locomotives. Today more than 100 of these Evolution Series China Mainline Locomotives already have been produced by CSR Qishuyan and placed in revenue service by the Ministry of Railways.
Compare to the majority of locomotives in operation in China today, GE Evolution reduces emissions and is more fuel-efficient. If the entire fleet of 8,000 Chinese locomotives were replaced with GE’s new locomotives, only 4,544 locomotives would be required and smog-producing pollutants would be reduced by a minimum of 28%.
Fuel efficient and low emission aircraft engines – GE Aviation continues to deliver its efficient aircraft engine, GE90 and CFM56 tech insertion and CFM56-3 advanced upgrades, to Chinese airlines. These engines will power the newly delivered B777, B737NG and A320 aircrafts in China, with fuel efficient and low emission green power. There are over 140 aircraft in service and more than 300 aircraft to be delivered in the next few years powered with CFM56 Tech Insertion technology. There are about 22 Boeing 777 operating in the Greater China region powered by GE90-115B and plans for 26 B777 powered by GE90-115B to be delivered to airlines in the region in the next few years.
The GE 90 holds a place in the Guinness Book of World Records as the jet engine with the most powerful thrust, while producing the lowest noise pollution in its class. As the exclusive engine on Boeing 777s, the GE 90 enables airlines to fly more efficiently than ever before. Each year, a fleet of 16 twin-engine aircraft powered by GE90-115B engines will emit 141,000 fewer tons of greenhouse gas emissions, equivalent to the amount of carbon dioxide absorbed by 35,000 acres of forest.
GE Consumer and Industrial
LED – GE Consumer and Industrial launched a new generation of outdoor lighting systems, including Evolve™, which is specifically designed for China market. Compared with traditional metal halogen lamps, this system saves more than 40% of energy. Its average lifespan is 50,000 hours, four times the duration recommended by standard HID light source systems. It has successfully been applied for outdoor lighting in China, producing excellent energy efficiency with lower operation costs.
GE lit up the square during the China’s 60th anniversary celebration on October 1. The GE Lighting North China team and its partner Beijing Hailan Qili Lighting Equipment Engineering Co., Ltd. won the Tian’anmen Square Lighting Upgrade Project bid, a project valued at USD 46,000. This project provides 1432 LEDs and 90 ceramic MH lamps which will be used as contour decorations for the Zhengyangmen wall and facade lighting for the square’s various buildings and structures. This is the second Tian’anmen lighting project GE has won since 1999.
Matt Beyer, Edelman Beijing
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