2. 2
GE Company Proprietary
GE: More than a century of innovation
114-Year-Old, High-Tech,
Growth Company
$150 Billion in Annual Revenues
Only Company Listed in Dow
Jones Index Today That Was in
Original List in 1896
315,000+ Employees Worldwide
1892
2006
3. 3
GE Company Proprietary
Six businesses, each with a number of
business units aligned for growth.
Commercial Finance
Healthcare
Infrastructure
NBC Universal
ConsumerFinance
Industrial
4. 4
GE Company Proprietary
GE Global Research: market-focused R&D
c. 1900
2006
• First US industrial lab
• Began 1900 in Schenectady, NY
• Founding principle … improve
businesses through technology
• One of the world’s most diverse
industrial labs
Cornerstone of GE’s commitment to technology
5. 5
GE Company Proprietary
Global brains
Global Research Center
Niskayuna, NY
China Technology Center
Shanghai, China
John Welch Technology Center
Bangalore, India
Global Research – Europe
Munich, Germany
QatarInnovation Center
• 2,600 research
employees
• 26,000 GE
technologists
worldwide
• GE technology
spend: $5.2B
7. 7
GE Company Proprietary
Global energy trends and challenges …
Population … more electricity demand
everywhere
Security … heightened concerns
Environment … driving today’s and
tomorrow’s decisions
8. 8
GE Company Proprietary
Power gen landscape … next 10 years
N. America China
Rest of Asia
India
W. Europe
Middle East
& Africa
Latin America
E. Europe & FSU
Total capacity additions – GW(2006 – 2015)
Nuclear
Renewables
Hydro
Coal
Gas/Oil
TOTAL
8
21
24
35
59
146
10 YearAvg Annual
Cap Adds (GW)
Source: GE Energy Forecast
9. 9
GE Company Proprietary
Power Generation Cost of Electricity
0
2
4
6
8
10
12
14
Simple Cycle
Gas Turbine
Combined
Cycle Gas
Turbine
Conventional
Coal
Cleaner Coal Nuclear Wind
No PTC
$10 Gas
$8 Gas
$6 Gas
$4 Gas
¢/kWh
CO2 g/kWh: 650 450 1000 900* 0 0
*Near zero with sequestration
Market Adopting Portfolio Approach
10. 10
GE Company Proprietary
This environment drives technology
development
• High fuel prices …
require higher efficiency
• Energy security …
requires more diverse
solutions
• More stringent
environmental standards …
require lower emissions,
increased use of renewables
and nuclear
11. 11
GE Company Proprietary
Portfolio of affordable, reliable &
environmentally responsible technologies
Energy technology objectives
Driving cost of electricity down
Efficiency
Reliability
Emissions
EfficientDiverse
Nuclear
Coal
Gas
Wind
Oil
Geothermal
Biomass
Hydro
Solar
+
12. 12
GE Co m pany Pro prie tary
Doubling our research
investment
Introducing more
ecomagination products
Reducing greenhouse gas
emissions
Make customers true partners
Keeping the public informed
1
2
3
4
5
13. 13
GE Co m pany Pro prie tary
Green technology winning in the market
Wind
Next-gen blades
Advanced drive trains
Innovative controls
'02 ‘06
$200 MM
$3B +
14. 14
GE Co m pany Pro prie tary
Evolution
Advanced Cooling
System
GEVO 12 Engine
Reduced fuel consumption AND
reduced emissions
•Reduces emissions by 40% compared to
existing locomotives
•Increased fuel efficiency by 3% - Saves 9,000
gallons of fuel per locomotive per year*
Common Control
Architecture
*Assumes average of 300,000 gallons of fuel consumption per year
Green technology winning in the market
16. 16
GE Company Proprietary
Gasifier
Radiant
Syngas
Cooler
Particulate
Removal
Mercury
Removal
Sulfur Removal
Future CO2
Capture
Gas Turbine
Electricity
Transmission & Distribution
Steam Turbine
HRSG
Cleaner coal
• Converts coal to synthesis gas … cleaned prior to burning
• Produces useful by-products
• Driving down cost and emissions
– CAPEX approaching pulverized coal
– Criteria emissions approaching natural gas
IGCC (Integrated Gasification Combined Cycle)
17. 17
GE Company Proprietary
Nuclear
• Simplified design, increased output, smaller footprint …
will reduce CAPEX and OPEX, and shorten construction schedule
• Part of the US Department of Energy 2010 Program, design certification
submitted to NRC, selected by NuStart, Entergy & Dominion
• On plan for 2007 Combined
Operation License applications
Improved safety
& security Modular&
passive design
Advanced new nuclear… ESBWR
18. 18 /
GE Global Research
• 3% of Electricity Production
• Significant Growth … ~25% CAGR (’95 – ’13)
• ~40% Global Power Capital Spending
Global Renewable
Installed Capacity (GWs)
Growing Demand forRenewables …
World Requiring Renewable
Energy Solutions
182
160 Wind 12GW
>50% of
Growth
US … 20 % Wind ‘20
UK … 20% Renewables ‘20
Germany … 20% Renewables
‘15
EU … 12% Renewables ‘10
China … 30 GW Wind ‘20
Spain … 20 GW Wind ‘11
India … 12 GW Wind ‘12
‘05‘04
Wind
Solar
Biopower
Small Hydro
Geothermal
Aggressive Global Targets
Source: REN21 2006 update
19. 19
GE Company Proprietary
Renewables … Wind
Complete range of products
• Arklow demonstration
project … 7 x 3.6s
• Largest commercial
operation
1.5 MWplatform
• Full power conversion
• Simplified servicing
• Larger farms with
easier grid integration
Future: 2.5/100 MW
• Capacity factor
leadership
• High reliability
• Advanced controls
Future: 5 - 7 MW
• Leading cost of
energy
• Utilize GE technology
strengths
• Among the most proven
and utilized technology
• Over 4,700 units
worldwide
• 97%+ availability
2.5 MWplatform 3.6 MWoffshore
20. 20
GE Company Proprietary
Breakthrough technology
– Nano
– Concentrators
– Other …
Tomorrow
Integrated systems Optimize
– Reduced material
– Increase efficiency
– Mfg processes
COE 30
¢/kWh
And Beyond
COE 18
¢/kWh
Today
COE 10
¢/kWh
Renewables … Solar
Driving cost down
21. 21
GE Co m pany Pro prie tary
Longer-termBest Bets
Enabling technology to deal with environmental challenges
Waste to energy
Liquid fuels
GE Co m pany Pro prie tary
CO2 Capture
Hydrogen
22. 22
GE Co m pany Pro prie tary
Future of Energy Technology
• Socio-economic trends demanding technology
developments
• Government, academia, industry all have a role
• No silver bullet – a portfolio approach to technologies
23. 23
GE Company Proprietary
Green is green: energy technology that is…
Good forourcustomers
Good forthe environment
Good forourshareholders
Note: This is one slide that can be used instead of the individual slides for each business.
GE’s six businesses are organized to serve customers, be they industries, markets, even countries.
Commercial Finance
Insurance • Leasing • Real Estate • Corporate Financial Services • Healthcare Financial Services
Infrastructure
Oil & Gas • Energy • Rail • Aircraft Engines • Water • Energy Financial Services • Aviation Financial Services
Industrial
Consumer & Industrial • Equipment Services • Plastics • Silicones/Quartz • Security • Sensing • Fanuc • Inspection Technologies
Healthcare
Diagnostic Imaging • Clinical Systems • Information Technology • Services • Bio Sciences
Consumer Finance
Europe • Asia • Americas • Australia/New Zealand
NBC Universal
Network • Stations • Entertainment • Universal • Sports/Olympics
$17B … The actual number in millions is: 17,347.5
Jacque Roeth 5/17/06:
I double checked all of the pie charts. They were/are correct.
For the 10yr totals. it appears that IGCC was counted twice; 1st for Gas/Oil total then again for Coal total. It should only appear in the total for Coal. I corrected the 64 to 59 for Gas/Oil and the Total.
I fixed the proportional bubble sizes.
Note Source is NOT DOE-EIA but GEE PG Marketing. This should also be on the first slide.
DOE-EIA ONLY contributed to installed base numbers on first slide
Key Takeaways
146GW … 10 yr growth is 3.2% CAGR
China, W. Europe & N. America … 60% of growth
US returning to normal growth … 22 GW/yr
Rapid growth segments … IGCC 40%, wind 8%, nuclear 6-8%
N America, W. Europe, Middle East & Asia account for 78% of all CC/SC GT-based plants
3 Countries make up 50% of future capacity additions (China, USA and India)
19 Countries make up 80% of new capacity additions
Other challenges will actually be the catalysts for invention and innovation…Three factors have made small output renewable energy attractive:
1.) Volatile fuel prices, that have severely impacted our economy.
2.) Supply constraint. Fossil fuels are becoming more difficult to locate and transport and the greatest deposits of oil and gas are increasingly found in politically unstable regions of the world. The call for energy security and independence are causing countries to look locally to solve their energy needs.
3.) Deteriorating air quality. All around the world and here, in the United States, air quality issues and climate change are impacting our quality of life. We have cities covered in perpetual smog, we have regions of the country experiencing acid rain and restricting Nox and Sox emissions while the federal government is debating legislation on mandatory CO2 emission reductions.
COE, Emissions, Fuel Availability Are Among the Key Driving Factors in Technology Selection
Worlds Supply of Fuel Sources
Large Variation in Local Supply & Economics of Transport
Categorized by Depleting, Sustainable, Renewable
Conversion: Our Challenge
Put Fuels to best use w.r.t. Efficiency, Reliability, Emissions, … All Things that our Customers Demand
Commonality of customer themes
COE – One Overall Measure to Capture these characteristics, looking at the customers Pro-forma & improving their economics through affordable technology & services.
Delivery: Services for Conversion
Similar Metrics: Affordable, Reliable, EnvironmentallyResponsible
In the United States, we use approximately 4,000 TWhr (terra watt hours) of electricity … and 51% of that is produced by coal burning power plants
Yet during the past 15 years, 92% of new power plant additions have been Natural Gas fired plants, primarily due to Natural Gas being cleaner to burn and more friendly to our environment
Today, coal, as a fuel, is 75% less expensive than natural gas and is still the most abundant US fossil fuel available
One of our newest technical programs is IGCC … Integrated Gasification in Combined Cycle … otherwise known as our “Clean Coal” initiative
In this process, we take coal and turn it into a synthetic gas, using oxygen and a gasifier, then cool the gas in a Radiant Syngas Cooler … then we clean the gas to remove Mercury, Sulpher and other Particulates before burning the gas in a standard GE gas turbine and combined cycle power plant to make electricity
The result is a clean burning coal based power plant with emissions equivalent to a Natural Gas fired plant … we currently have 2 customer funded power plant design studies underway, with much interest for more …
With our new ESBWR product, we are also leading the the way in safe, reliable and clean nuclear power technologies … Large investment in new reactor technology … 200% increase in nuclear core engineering technology
Strong participation in NuStart, Dominion and TVA consortia with 50/50 cost-share sub-award contracts with the DOE’s Nuclear 2010 program
Customer benefits to ESBWR are: reduced footprint, increased output, decreased systems, valves, components, modular construction, passively safe systems
ABWR currently offers 18 reactor years of experience. Only GEN-III reactor operating in the world … 4 in operation, 3 in construction and 4 in planning stages
Advanced fuel offers increased energy output per bundle, lower uranium costs, the ability to uprate to 120% … for small capital and operating expense
Outage reduction tools … submarine Invader inspection tools and patented 360 work platform reduce outage time by allowing parallel path activities
If we think of wind as a “fuel”, the cost of this fuel, of course, is free … which explains the terrific demand we have seen for Wind Turbines across the spectrum of wind speeds, turbine size, and on-shore as well as off-shore locations
Global demand for Wind turbines is growing at an 18% annual rate … and prices are rising as new technologies are introduced that offer customers more flexibility and reliability
GE’s 1.5MW platform now has over 3,300 units in operation worldwide with availability above 97% … our 2.5MW machine is designed for larger wind farms and we’re growing this model into a 3MW range … Finally, our 3.6MW offshore turbines continue to set reliability records for the industry with seven machines operating in the Irish sea at Arklow
Recent technology introductions on GE Wind Turbines include “smart” control systems that help the turbine independently adjust the blade angle to the wind speed and direction during operation … something we call “Blade Angle Assymetry” … allowing the turbine to operate in high, gusty winds smoothly and reliably without suddenly tripping off-line
Our advanced power electronics have been integrated with the electrical generating system to improve the turbines operability with the transmission and distribution grid
The earth receives more energy from the sun in just one hour than the world uses in a whole year.
Worldwide photovoltaic installations increased by 927 MW in 2004, up from 574 MW installed during the previous year. In 1985, annual solar installation demand was only 21 Megawatts.
Solar Energy (photovoltaic) prices have declined on average 4% per annum over the past 15 years. Progressive increase in conversion efficiencies and manufacturing economies of scale are the underlying drivers
residential solar energy system typically costs about $8-10 per Watt. Where government incentive programs exist, together with lower prices secured through volume purchases, installed costs as low as $3-4 watt - or some 10-12 cents per kilowatt hour can be achieved. Without incentive programs, solar energy costs (in an average sunny climate) range between 22-40 cents/kWh for very large PV systems.
This is truly a distributed generation option… at the point of load.
No new T&D required
Great at offseting peaks…reducing strain on T&D
Competes w/ Retail prices…not wholesale
