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 Engineered Equipment Package (EEP) at Pennsylvania CC Power Plant

GE announced an order for a single shaft engineered equipment package (EEP), with a high-efficiency 7HA.02 gas turbine at its heart, to power the Ares EIF’s Birdsboro Power combined-cycle power plant in Birdsboro, Pennsylvania, USA.

With the help of GE’s latest power generation technology and financing from GE Capital, Birdsboro Power is expected to produce 488 MW upon commercial operation in 2019.

“We are pleased to bring this new plant online, which will help continue the shift to cleaner, more cost-effective power in the PJM region,” said Mark Voccola, a partner in Ares EIF, within the Ares Private Equity Group. “The abundance of low-cost natural gas in Pennsylvania means GE’s large, high-efficiency 7HA.02 technology is a great fit, supporting the region’s increased use of natural gas for power generation.”

The 7HA.02 incorporates a 14-stage advanced compressor with 3D aerodynamic foils with superfinish, three stages of variable stator vanes and field-replaceable blades.

“As the largest digital-industrial company, GE is uniquely positioned to bring a complete package of cutting-edge products and solutions to our customers,” said Joe Mastrangelo, president & CEO, GE Gas Power Systems.  “We’re able to provide critical financing to complete this project and deliver the world’s most efficient combined-cycle technology so that Birdsboro can provide more reliable, flexible and efficient power for the people of Pennsylvania.”

In addition to the equipment order, GE, through GE Capital’s Energy Financial Services, co-lead arranged senior secured credit facilities with CIT Bank and Investec, which will be used to support construction and operations of the plant.

The Birdsboro Power project was developed by EmberClear Corp., and the order includes one 7HA.02 gas turbine, one D650 steam turbine, one heat recovery steam generator (HRSG), plant controls and additional equipment. The gas turbine will be manufactured in Greenville, South Carolina, USA, and the steam turbine in Schenectady, New York. The turbines will operate in single-shaft combined-cycle configurations, providing the flexibility required to add highly-efficient, reliable power to the grid as needed.

This project marks GE’s 21st HA unit booked in the U.S. The HA is GE’s largest and most efficient gas turbine. GE’s Power Services has also signed a multi-year services agreement for continued maintenance of the facility’s power generation equipment.

GE 9HA

The 9HA high efficiency, air-cooled gas turbine is an industry leader among H-class offerings, and now the 9HA.01 is at the heart of the world's most efficient combined-cycle power plant. With two available models—the 9HA.01 at 429 MW and the 9HA.02 at 519 MW—customers can easily select the right capacity to meet their generation needs.

INDUSTRY-LEADING OPERATIONAL FLEXIBILITY

Features a fast 12-minute ramp-up from start command to full load, and up to 70 MW/minute ramping capability in a 1x1 configuration or 140 MW/minute in a 2x1 configuration.

LESS COMPLEX H-CLASS OFFERING

Showcases a simpler configuration than GE’s previous H-class fleet and doesn’t require a separate cooling air system.

VALIDATED AND PROVEN

The 9HA has undergone a full-speed, full-load validation test at our Greenville, SC facility in 2015 and exceeded engineering performance expectations.

9HA.01/.02 Gas Turbine

The world's largest and most efficient heavy-duty gas turbine.

Thanks to a simplified air-cooled architecture, advanced materials, and proven operability and reliability, GE's 9HA units deliver exceptionally low life cycle cost per megawatt. The economies of scale created by this high power density gas turbine, combined with its more than 62 percent combined-cycle efficiency, enables the most cost-effective conversion of fuel to electricity to help operators meet increasingly dynamic power demands.

Streamlined maintenance with quick-removal turbine roof, field-replaceable blades, and 100 percent borescope inspection coverage for all blades4-stage turbine with 3D aerodynamic hot gas path, cooling and sealing improvements, single-crystal and directionally solidified blades, and double-wall casing for improved clearance control14-stage advanced compressor with 3D aerodynamic airfoils with superfinish, 3 stages of variable stator vanes, and field-replaceable bladesDLN 2.6+ combustor with axial fuel staging is proven through 45,000 starts and >2 million hoursCombustor enables improved turndown and greater fuel flexibilityReduces need for on-site gas compression; fuel pressure requirements as low as 435 psi/30 barReaches turndown as low as 30 percent of gas turbine baseload output within emissions complianceFuel flexible to accommodate gas and liquid fuels with wide gas variability, including high ethane (shale) gas and liquefied natural gas

FORMER NAMES:
Frame 9H, 9F 7-Series, 9F-7, 9FB.05, FE50

Explore the HA's Modular Gas Turbine Enclosure

GE’s HA gas turbine auxiliary systems are pre-configured, factory assembled and tested modules engineered to reduce field connections, piping, and valves. This translates to a simpler installation that reduces field schedule and installation quality risks while improving overall installation times—up to 25% quicker compared to GE F-class gas turbine enclosures.

Completion of Fast Track Power Project 4.8 GW in Egypt by Siemens

Siemens announced that it achieved a new world record for the execution of fast-track power projects in Egypt by connecting 4.8 gigawatts to the national grid, according to a statement on Thursday. 

The German company set a goal 18 months ago to bring 4.4 GW to the national grid, a target that has been exceeded by 400 MW, the statement said, pointing out that the surplus of 400 MW could cover the electricity requirements for one million people. 

Siemens, in cooperation with Orascom Construction and Elsewedy Electric, succeeded in boosting Egypt's power generation capacity by 45 percent in 18 months, the statement read.

"We made a promise to Egypt and we kept our word. And by doing so, we not only overachieved in performance, we also broke all records in modern turnkey power plant construction. This was only possible by an outstanding collaboration between the government, the Ministry of Electricity, the Egyptian Electricity Holding Company and a dedicated and competent Siemens team," said Joe Kaeser, President and CEO of Siemens AG.

The company targets finalizing three power stations in May 2018 that would comprise the "largest gas-fired, combined cycle power plants ever built and operated in the world."

The CEO for Siemens Egypt, Emad Ghaly, said the three power plants will provide electricity to 45 milion people and will allow Egypt to save up to US$1.3 billion a year. 

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.