Transatlantic Cooperation in Renewables
Vic AbateVice President, Renewables3rd Transatlantic Market ConferenceMay 14, 2007
GEEnergy
2007
2030
4
Structured for growth … the “new GE”
Industrial Healthcare NBCUInfrastructureCommercialFinance
Consumer Finance
• Market leadership• Domain knowledge
• Technology advantage• Financial strength … AAA
Operating in 100+ countries … 125+ years … 300,000+ employees worldwide …2006 Revenue $163B
5
… our commitment
Environmental performance
Operating performance
4321 Report Progress
Reduce Emissions
Grow Revenues…$20 Billion
Double R&D…$1.5 Billion
6
Affordable, reliable & environmentally responsible
Global power generation requirements
Driving cost of electricity down
Efficiency
Reliability
Emissio
ns
EfficientDiverse
Nuclear
Coal
Gas
Wind
Oil
Geothermal
Biomass
Hydro
Solar
Nuclear
Coal
Gas
Wind
Oil
Geothermal
Biomass
Hydro
Solar
+
7
Global renewable installed capacity (GWs)
Growing renewables demand …
World requiring renewable energy solutions
� Significant growth 25%
CAGR (’01-’06)
� 40% power capital
spending
�Wind >50% of growth
� Countries & states
establishing renewable
energy targets
Source: REN21 2006 update + GE est (2/07)
182
160
‘05‘04
Wind
All other
‘06
~210
8
Wind … most viable solution
COE nearing mainstream
¢ per kWhr
Coal
~7.5
Nuclear
~6
Biomass
~10
Solar
~30+Cost of electricity 20 year levelized
Basis: $8.00/MMBtu NG
Wind
~7.5
Gas
~8
‘85 ‘95 ‘050
5
10
20
COE (¢/kWh)
15
� Technology
� Turbine size
� Project scale
� Fixed cost electricity
� Energy security
� Carbon-free generation
� Domestic solution
9
+6X (Unit volume)
Collaborative technology programs with:
Upwind …European community framework 5
Sirocco …European community framework 6
US department of energy
7 Assembly sites
Product Portfolio:1.5, 2.5 MW developed in EU for global deployment
Install Base: ~10 GW
� Advancing technology …efficiency, reliability, logistics
� Managing supply chain …integrated with global suppliers
� Operational differentiation …driving quality fulfillment
Global presenceAccelerating global deployment
‘08‘04
3,000+
~500
Wind turbines
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Transatlantic cooperation at GE
Wind power1.5MW, 2.5MW applications for US and EU
Global research centers4 multi-disciplinary facilities around the world
Solar power~50% of ‘07 installs in EU
BiogasIntegrated global supply chain
Cleaner coal IGCCEuropean “center of excellence” in Poland
H – System gas turbineEU commercial launch site
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Global research footprint
Bangalore, India
4 global research centers
Niskayuna, New York Munich, Germany
Shanghai, China
Global research driving advanced power generation solutions
Highlights
• 2,600 research employees
(nearly 1,000 PhDs)
• 27,000 GE technologists
worldwide
• $5.7B technology spend
• 1,400+ patents issued
in 2006
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Research & development key
Breakthrough technology– Nano scale materials– Concentrators– Innovation
Tomorrow
Integrated systems
On and off-grid applications
Optimize– Material science– Increase efficiency – Value chain optimization
And beyond
Today2 global manufacturing sites
Install base: 115MW
Solar electric power systems for residential and commercial applications
Tec hnology driving COE
Collaborative technology programs
US DOE: solar America initiative
Solar powered clean water systems
GE solar technologies
Solar power
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A leading manufacturer of biogas-fueled reciprocating engines for power generation.
• Power range from 0.25MW to 3MW, 4 platforms / 10 products
• Fuel flexibility: Natural gas or a variety of renewable or alternative gases
• Plant configurations: Generator sets, cogeneration systems, container solutions
• Installed base: More than 6,500 units / 7,400 MW
1160
480
‘03 ‘06
Gas engines
Jenbacher gas engines
(Unit volume)
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Manufacturing site in Greenville, South Carolina
Technology collaboration with US DOE and EU universities
Commercial launch site at Baglan Bay Power Station, Port Talbot, Wales
H system… world’s most advanced gas turbine
$1B technology investment
Gas turbines: The H SystemTM
• 60% combined cycle efficiency platform
• Innovative closed loop steam cooling
• Lower emissions per MW vs other large combined cycles
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IGCC … the Cleaner Coal solutionAdvantages
• Coal is 75% less expensive than natural gas
• Gasification cleans the coal before it is burned, preventing pollution instead of cleaning up the pollution after it is produced
• A Cleaner Coal option increases fuel diversity, reduces emissions, and increases siting and permitting flexibility
Idea
In Integrated Gasification Combined Cycle (IGCC) plants, gasification converts low cost fuels, like coal, into a high value, natural-gas-like fuel called synthesis gas to fuel a combined cycle system.
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Cost of electricity/
environmental impact
Research Commercialization Globalization Maturity
Time
Renewables
Technology life cycles
Cost-effective options needed for growing global demand
• Continued investment in technology … in response to changing landscape
• Delivering cleaner solutions that make our customers more profitable
• New products … new platforms … expanded solutions
Ideas
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Develop and create:•Common approach toward regulatory framework
� Adopt framework to reduce CO2 emissions to an agreed target level� Develop common language, rules, standards and codes for new technologies to reduce
regulatory uncertainty, and encourage investment and trade
•Incentives for application of energy conserving and efficiency� Encourage early deployment and adoption of best available technology� Pursue enactment of market-based framework to reduce greenhouse gas emissions
Promote:•R&D coordination cooperation
� Develop/deploy transatlantic R&D clean fossil fuel program� Facilitate technological & regulatory outreach to developing countries
•Public-private partnerships� Support transatlantic public-private partnerships in energy innovation (e.g. Solar
America Initiative)
Enhancing transatlantic cooperation
Thank you
Vic AbateVice President, Renewables
GEEnergy