GE (NYSE: GE) and China Huadian Corporation today signed a five-year, joint collaboration agreement for distributed energy combined heat and power (DECHP) projects in China that is expected to boost U.S. exports and support thousands of U.S. clean energy jobs.
The agreement was announced on the eve of Chinese President Hu Jintao’s state visit to the United States.
GE anticipates that at least 50 gas turbine generator sets will be sold and installed in China, resulting in $500 million of total revenue for the collaboration. Of that amount, approximately $350 million is estimated in U.S. exports. In addition, according to the U.S. Department of Commerce, the agreement could support approximately 2,100 U.S. jobs and provide new opportunities for further job growth in both countries.
As a key component of distributed energy, combined heat and power (CHP) offers a cost-effective opportunity to improve the environment and economy. CHP significantly reduces CO2 emissions through greater energy efficiency and has the ability to relieve grid congestion.
The use of DECHP will be the most efficient use of natural gas in China and will be a significantly cleaner alternative to the higher greenhouse gases from coal-fired power plants.
“The Chinese government has decided to promote the country’s DECHP market development, and China Huadian Corporation plays an important role in advancing that initiative,” said Xianming LIU, general manager of CHEC New Energy Technology Development Co., an affiliated enterprise of China Huadian Corporation.
“DECHP technologies produce both electricity and useful thermal energy from a single fuel at a facility located near the consumer,” LIU said. “These efficient systems recover heat that normally would be wasted in an electricity generator and save the fuel that would otherwise be used to produce heat or steam in a separate unit.”
On November 9, 2010, GE announced plans to invest more than $2 billion into its efforts in China through 2012 to help tackle the country’s pressing energy and infrastructure needs. GE Chairman and CEO Jeff Immelt announced that the company plans to commit $500 million to enhance China R&D capabilities and establish new Customer Innovation Centers to better serve west, north, central and south China.
GE and State Grid Corporation of China (SGCC), China’s top power distributor and one of the world’s largest utilities, also announced plans for several joint ventures to address China’s growing energy needs and to electrify its vast transportation infrastructure.
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