GE and Caithness Energy Business Deal

General Electric Co. is nearing a deal with Caithness Energy with a potential value of more than $1 billion to supply equipment for multiple power plants in the U.S.

GE would provide as many as six of its new H-class gas turbines, along with steam turbines and other equipment, the companies announced Wednesday. The pact, covering plants to be developed in 2017 and 2018, is expected to become final by the end of this month.

A deal would be a boon for GE as Chief Executive Officer Jeffrey Immelt reorients it around industries such as energy, aviation and oil. The Boston-based company shed most of its finance and consumer operations while bulking up equipment manufacturing through agreements including the $10 billion acquisition of Alstom SA’s power division.

The so-called HA turbine, a Winnebago-sized unit that is the company’s most efficient, is crucial to GE Power as global population growth drives demand for electricity. GE committed $2 billion to develop the product and help maintain its position as the world’s leading supplier of gas turbines. The manufacturer accounted for about 39 percent of the world market in 2016, followed by competitors Siemens AG and Mitsubishi Hitachi Power Systems Ltd., according to data from McCoy Power Reports.

GE has received orders for 58 HA turbines, not including the six under consideration in the Caithness deal.

Top Customer

Under the agreement being discussed, GE would provide equipment generating as much as 3 gigawatts of electricity, or enough to power about 2.5 million U.S. homes. Orders for the turbines and associated service agreements are expected to be recorded by GE in the next 24 months.

Caithness is poised to become the top customer for the HA turbine, following a 2015 agreement to buy two units for a Pennsylvania plant. That facility, known as Caithness Moxie Freedom, is under development and will go online next year.

Separately, GE signed a pair of agreements with Gas Natural Fenosa valued at $130 million to service equipment in Mexico, including gas turbines manufactured by Siemens and Mitsubishi Hitachi. GE gained the ability to maintain and repair competitors’ products through the Alstom acquisition.

Leaders of GE’s power and renewable-energy businesses are meeting with investors Wednesday in New York to detail the operations.

GE wins first of its kind contract of oOEM services

Powering the Middle East! GE wins first of its kind contract servicing a generator manufactured by another Original Equipment Manufacturer (oOEM) highlighting GE’s expanded capabilities to service oOEM products.

One of the most exciting aspects of GE’s acquisition of Alstom’s energy portfolio in November 2015 was how it would potentially enhance the company’s range of total plant solutions, cross fleet capabilities and regional presence. This includes the ability to service non-GE equipment within the Middle East & Africa (MEA) region.

One such example is the recent execution by GE’s Power Services business of an agreement with Suez-Tractabel Operation & Maintenance Oman LLC (STOMO) for stator rewinding services, high speed balancing of the rotor, as well as digital solutions for an Ansaldo generator at the Barka II Power and Desalination Plant.

Located about 50 kilometers away from Muscat, Barka II can deliver up to 120,000 cubic meters per day of potable water, as well as 678 megawatts (MW) of electrical power to the Sultanate of Oman. The contract was the first of its kind for Power Services to be executed in the Middle East region.

The generator stator rewinding is expected to extend the asset’s life for approximately 20 years and was conducted on site. GE also leveraged its regional strengths by undertaking inspection services and high speed balancing for the rotor at the Global Repair Solutions Jebel Ali Generator Service Center in Dubai.

Further enhancing the maintenance, GE also provided a generator health monitoring suite, which allows for improved asset management.

“GE’s deep understanding of the industry, technological capabilities and advanced suite of digital industrial solutions positioned them as a trusted partner of choice,” said Jurgen De Vyt, Chief Executive Officer, SMN Power Holding Company. “The services were delivered as per internationally recognized standards through proactive, on-the-ground support by GE’s highly qualified team of engineers, helping us increase our competitiveness.”

GE’s Global Repair Solutions Jebel Ali Generator Service Center in Dubai is the only facility in the Middle East, North Africa and Pakistan region to provide high-speed balancing services. This allows any type of rotor repairs and field rewinds requiring high-speed testing, thereby reducing the risk of failure during onsite commissioning and improving the availability and reliability of the power plant.

With one of the largest services portfolios in the industry and expanded total plant solutions capabilities, GE’s Power Services now can support more than 90 OEM brands across all major plant assets and service any type of generator (30+ OEM brands).

GE is a key partner in supporting the Sultanate of Oman’s energy production and has had an active presence in the country since 1975. GE has an office in Muscat and an Electric Submersible Pumps (ESP) Field Service & Repair Center in Nimr. More than 80 turbines installed by GE support the generation of over 8 gigawatts of power in Oman, serving nearly half the country’s production.

GE & Alstom Tech Combination

Combination of GE and Alstom Technology Proves Powerful: Pakistan Advances with Third High-Efficiency HA Gas Power Plant
Combined HA Projects to Fulfill Over 65 Percent of the Power Shortage in Pakistan, Equivalent Power Needed to Supply Nearly 20 Million Pakistani Homes
Alstom Acquisition Adding Plant Expertise, Steam Turbine and Heat Recovery Steam Generator (HRSG) Technology
33 HA orders in backlog among 82 HA Technical Selections1 Worldwide
January 21, 2016 10:00 AM Eastern Standard Time
SCHENECTADY, N.Y.--(BUSINESS WIRE)--For years, crippling electricity shortages have plagued Pakistan, creating challenges for residents and businesses alike, and fixing the problem has become a priority for the Federal Government of Pakistan. To address this, GE (NYSE:GE) will provide two high-efficiency 9HA gas turbines, one steam turbine and two heat recovery steam generators (HRSG) to SEPCOIII Electric Power Construction Corporation, a wholly owned subsidiary of PowerChina, for the new 1.2 gigawatt (GW) Haveli Bahadur Shah power plant.

“GE’s HA gas turbine and steam tail technologies going into the Haveli plant are both complementary and a standout in the industry”
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The steam turbine and HRSGs have been engineered by Alstom, and with GE’s recent acquisition of Alstom’s power and grid businesses, they have been incorporated into GE’s portfolio. PowerChina will handle engineering, procurement and construction of the plant.

This project, the third GE has announced in Pakistan since October, marks the 5th and 6th HA turbines for Pakistan among a total of 33 worldwide orders for GE’s HA, the world’s largest, most efficient gas turbine. Together, Haveli, Balloki and Bhikki combined-cycle power plants will be able to provide the equivalent power needed to supply nearly 20 million Pakistani homes, which can fulfill more than 65 percent of the power shortage in Pakistan.

“We are taking action to provide sustainable, reliable energy that allows residents to live comfortable lives and local companies to consistently conduct business,” said Rashid Mahmood Langrial, CEO of National Power Park Management Company Limited (NPPMCL), the holding company of Haveli Bahadur Shah power plant. “The Haveli facility will help put power on the grid efficiently, using the most advanced technology available.”

“GE’s HA gas turbine and steam tail technologies going into the Haveli plant are both complementary and a standout in the industry,” said Joe Mastrangelo, president and CEO, gas power systems at GE Power. “At Haveli, Balloki and Bhikki plants, GE’s high efficiency technologies will help bring reliable power to the grid, so we can help Pakistan overcome shortages and meet its expanding energy needs.“

Among key agreements in the country, GE has signed a memorandum of understanding with the Federal Government of Pakistan to develop Pakistan’s energy resources to meet the projected demand of 54,000 megawatts by the year 2020.

Including the Haveli Bahadur Shah plant, 33 HA units have been ordered among 82 that have been technically selected1 by customers around the world. GE’s H-class technology has been embraced by customers in Korea, Japan, the United Kingdom, Brazil, the United States, France, Russia, Germany, Turkey, Egypt, Pakistan and Argentina.

GE’s HA gas turbines provide a combination of the most output, highest efficiency and best operational flexibility and lead the industry in total life cycle value. The 9HA offers a net combined-cycle efficiency of more than 62 percent and leads the industry with cleaner, reliable and cost-effective conversion of fuel to electricity.

To view a photo and infographic that accompany this release, please click here.

About NPPMCL

National Power Park Management Company Limited (NPPMCL) is a wholly owned special purpose vehicle (SPV) of the federal government to implement Balloki and Haveli Bahadur Shah RLNG power plants to meet the energy demand in Pakistan.

About GE

GE (NYSE: GE) is the world's Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

About GE Power

GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. We are transforming the electricity industry with the digital power plant, the world’s largest and most efficient gas turbine, full balance of plant, upgrade and service solutions as well as our data-leveraging software. Our innovative technologies and digital offerings help make power more affordable, reliable, accessible and sustainable.

For more information, visit the company's website at www.gepower.com and http://powergen.gepower.com. Follow GE Power and GE Gas Power Systems on Twitter @GE_Power and @GE_GasPower.

1 A technical selection is one of the first steps in developing a new power plant. It means that if the power plant is constructed and commissioned, it will use GE gas turbines. Following technical selection, a developer will proceed with securing financing, permitting and more.

Contacts
GE Power
Kevin Norris, +1 678 844 4568
kevin.norris@ge.com
or
GE Power
Shaun Wiggins, +1 518 385 5992
shaun.wiggins@ge.com

GE POWER
NYSE:GE

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