GE finds niche amid conservation push

For Jack Wen, the charismatic chairman of GE Energy China, this is the best of times for his line of business.

Energy conservation has taken center stage as the nation tries to combat pollution and environmental damage. Rising oil prices, which recently crossed $100 a barrel, have added impetus to this movement.

"The environment in China is very good for GE now," Wen told China Daily at the US-China Clean Energy Dialogue. "We've heard a lot about energy conservation and environmental protection from the government, and that's just what we offer with our technology," he said.

His confidence is backed by GE China's strong performance. Last year, GE China posted double-digit revenue growth to $5.4 billion. Its GE Energy unit accounts for the biggest share of the company's China business.

GE Energy provides clean technologies for power generation including gas and wind turbines, nuclear, biomass and solar.

"Our specialty is always technology. We are the global leader in various energy-related technologies, such as gas turbines," said Wen.

For example, GE Energy has been around the longest in the field of gas turbine technology, Wen said.

A slowdown in the growth of gas turbine applications in China has seen the company shift focus to the development of clean coal technology.

"Coal gasification is another strong point of our technology. We have the largest market in China in coal gasification, with a 50 percent share," said Wen.

GE's Shanghai lab, one of the company's key research centers for coal gasification technology, has 15 top scientists.

"I hope we can provide hi-tech solutions for difficult projects like the Three Gorges, which we're already involved in. But the next big thing that I'm wishing for is wider adoption of advanced coal gasification, like IGCC," said Wen.

China is moving to integrated gasification combined cycle (IGCC) technology, in which coal is gasified through a controlled shortage of air or oxygen in a pressurized reactor to create a syngas, cleaned prior to burning. The technology is much cleaner and environment-friendly than traditional steam-combined power plants.

"The top five electricity companies are looking at IGCC now, and I hope GE has the chance to work on it," he said.

"Another thing we can offer specially for China is experience and expertise. Our energy business has the longest-serving employees at GE in China."

"We have a very big sourcing operation in China that takes Chinese companies around the world. We have a saying: 'If you come to China and nobody in China wins, you are not going to win'."

GE's Chinese joint venture partner Harbin Power Equipment Energy produces power equipment using transferred technology.

China's two other power equipment manufacturers are Shanghai Electric Group, partnered with Siemens Power Generation Group, based in Shanghai; and Dongfang Electric Corp, teamed with Mitsubishi Power Systems, in Sichuan province.

"GE Energy is reportedly about to transfer its 10 MW and 5 MW gas turbine technology to local companies, which are small but suitable for China," said Han Xiaoping, vice-president of energy website China5e.com.

"Collaboration with global corporations is more welcome when China can absorb and integrate resources that are brought in by those multinationals," Han said.

(China Daily 01/15/2008 page15)