GE Energy Announces More than $3 Billion in New Customer Agreements

GE (NYSE: GE) today announced more than $3 billion in new customer agreements spanning its Energy business. The orders include natural gas production technologies in subsea and liquefied natural gas sectors; natural gas technologies to produce power such as heavy-duty and aeroderivative gas turbines, gas engines and waste-heat recovery solutions; wind turbines; and water treatment, grid infrastructure and equipment optimization technologies. Together, they reflect the expanded set of capabilities GE offers to customers across multiple energy intensive industrial sectors.

Advanced Technology, Local Capabilities in Emerging Markets Key to Wins

"Energy technologies—from exploration to power generation—are in high demand by our customers, particularly in emerging markets,” said GE Vice Chairman John Krenicki. "Our investments in technology development and recent acquisitions are enabling us to bring advanced products to help our customers improve their energy intensive processes.”

Today’s announcements include a number of "firsts” and key milestones for GE technology:

• GE secured more than $800 million in new commitments to supply wind and gas turbines for projects in Brazil that will produce 1.4 gigawatts of electricity—40 percent of the total amount awarded in energy auctions conducted recently by Brazil’s National Electric Power Agency. GE won commitments for GE’s 1.6 wind turbine technology that will provide at least 378 megawatts of power. As part of Brazil’s energy auction, which covers multiple types of power generation, GE also won 100 percent of the natural gas power generation opportunities with GE’s 7FA Gas Turbine combined-cycle technology to supply more than 1 gigawatt of power. The commitments announced today are in addition to wind commitments previously won by GE in Brazil in 2009 and 2010 auctions to supply more than 800 megawatts of power.
• Also in Brazil, GE has been awarded a major subsea and surface contract with a potential value of $230 million from OGX Petróleo e Gás Ltda., marking the largest contract ever signed between GE and OGX and the first one involving the supply of equipment for development projects already in the production phase. As of today, $32 million in formal orders have been signed and booked. The drilling and production equipment for three offshore fixed production platforms will be deployed in Brazil’s Waimea and Waikiki oil and gas fields, where OGX plans to drill a significant number of production wells over the next four years.
• In the single largest order for GE power generation technology between GE and Egypt, GE Energy has signed two contracts for $300 million to supply six advanced F-Technology gas turbines and associated services for two new combined-cycle power plants near Cairo. The projects will add 2,250 megawatts, which is 10 percent of capacity, to the country’s power grid, supporting residents and businesses in Cairo.
• In Australia, GE technology has been selected for the world’s largest Floating Liquefied Natural Gas platform (FLNG). Marking a milestone for GE, the agreement is GE’s first order in the FLNG industry for main refrigerant trains, a vital element of the liquefaction process in which natural gas is cooled to a liquid status. The Shell Prelude project, which is about 200 kilometers off of Western Australia’s Kimberly Coast and will feature GE steam turbine-driven compressors, is a breakthrough for tapping into stranded gas reserves in remote sites. With this project, the total value of LNG contracts awarded globally to GE by different companies in the first nine months of 2011 reaches $1 billion, underscoring GE’s successful trend in supplying onshore, offshore and floating LNG projects.
• GE has earned more than $1.5 billion in new commitments for its new 1.6-100 wind turbine, the world’s most efficient wind turbine in its class. New deals for 750 turbines have been signed bringing the total number of units to 1,248 for the 1.6-100 wind turbine technology, which will be put into wind farms in North and South America over the next two years. Highlighting the increasing demand for GE’s latest technology, commitments for GE’s 1.6-100 have grown to nearly 2 gigawatts in September, bringing the total to-date to $2.7 billion.
• GE signed a new partnership with global brewer Anheuser-Busch InBev, the first such agreement for GE Energy in the food and beverage sector. The partnership will develop innovative manufacturing solutions to drive energy efficiency and water savings in more than 35 existing and "greenfield” Anheuser-Busch InBev facilities across China.
• In Iraq, GE has been selected by BP Iraq-N.V.-British Petroleum for enhanced oil recovery operations to increase production in the Rumaila oil field of southern Iraq. In an innovative engineering approach for the more than $40 million project, GE teamed up to offer pumps, Waukesha gas engine technology recently acquired from Dresser Inc., gas systems, valves, air coolers and condition monitoring technology that is a major component of predictive maintenance as it monitors critical factors such as vibration and temperature.
• Also in Iraq, GE is reinforcing its commitment to support the country’s expanding energy infrastructure by signing a multi-million dollar, multi-year agreement with Mass Global Investment Company, an independent power producer in Northern Iraq. Under the agreement, GE will provide technology and services to help Mass Global maintain the high reliability and overall performance of the 18 GE gas turbines installed at the Arbil, Sulaimaniyah and Dohuk power plants, located in Iraq’s Kurdistan region.
• In GE’s first joint deployment of Waukesha engine technology and Jenbacher Gas Engines, GE will provide on-site power and water treatment solutions for Queensland Gas Company’s (QGC) major Australian coal seam gas-to-LNG project. The engines will generate reliable, on-site power for GE’s advanced membrane and thermal water treatment technologies that are being installed to desalinate water produced during the extraction of coal seam gas. QGC is developing the world’s first LNG project based on gas from coal seams and GE’s technology is helping QGC make Australia a new global source of LNG.
• In Indonesia, the Senipah Project marks the first installation of GE’s advanced aeroderivative gas turbine LM6000-PG technology in Asia and the second installation in the world. As Indonesia advances plans for increased electrification, the new power plant—which will feature two GE 41-megawatt aeroderivative units—provides a catalyst for economic growth in the East Kalimantan region of Indonesia.
• In Italy, GE is combining waste heat recovery technology and gas engines in the largest project to date featuring newly acquired technology from Calnetix Power Solutions. In a $50 million project, Gruppo AB, a European combined heat and power project developer, plans to deploy GE’s Jenbacher gas engines and Clean Cycle^TM waste-heat recovery modules as a packaged solution. The integrated system will offer Gruppo AB’s European customers maximized power output and minimized fuel consumption. The primary source of fuel for the new package is biogas from manure, corn and other crops.
• GE is helping Ecuador modernize its energy grid with the largest smart grid project in Latin America. The 25,000 smart meters that will be installed across the country by Electrica de Guayaquil (EDG) mark the second phase of a complete overhaul of the country’s meters, which will eventually replace nearly 200,000 meters nationwide.
• In Canada, where oil sands are growing in importance as a source of fuel, Grizzly Oil Sands ULC’s Algar Lake project near Fort McMurray, Alberta, Canada, is one of three recent projects to choose GE’s patented evaporative technology to treat and recycle its wastewater. GE’s produced water evaporation process will recycle 97 percent of the wastewater and is the only method that is commercially proven to achieve complete water recycling. It dramatically reduces freshwater requirements and also offers lower total capital and operating costs.

Today’s announcements follow GE’s launch of the new FlexAero LM6000-PH, a highly-efficient 50-megawatt (MW) gas turbine, unveiled in Houston on September 14 as the solution for businesses and communities around the globe who need power, fast. The launch of the FlexAero coincided with GE Energy having received more than $1 billion in orders and commitments for heavy duty and aeroderivative gas turbines for projects throughout North America since January 1, 2011.

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 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 Management 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 21^st century energy needs.