GE EnERGy

Transcription

GE EnERGy
GE ENERGY
EpC AssOCIATEs
MAGAzINE
N°4
ApRIL 2010
PaRTNERING TO WIN
sUCCEss sTORY >>
REpOWERING
THE AMAzON
WITH CLEANER
ENERGY
sTAKEs >>
DELIVERING
THE NUCLEAR
fUTURE
RiGht tEChnoLoGy
COMMITMENT >>
pROVIDING
sOLUTIONs
ACROss
THE ENTIRE
VALUE CHAIN
LATIN AMERICA >>
AN EMERGING
OIL sUpERpOWER
IN THE RIGHT
PLACE
GE EnERGy
EPC SUMMIT & SOa LaTIN aMERICa
APRiL 28 & 29, 2010 - SAo PAuLo, BRAziL
number 4 l April 2010
GE EPCmag 4 SR ok.indd 1
CONNEXION
l 01
16/04/10 10:39:59
Point of view
Brazil and some of the other Latin American countries have ridden the
global financial storm well and are on track to continue their upward
development. Prospects in the energy sector are bright.
ENTERING A LATIN
AMERICAN DECADE
I
“Our local
presence
throughout
the region has
always been an
important part
of our success.”
Rafael Santana
Latin America Region Executive
GE Energy
04 l
around
the world
Recent news
02 l GE EPCmag 4 SR ok.indd 2
06 l
Success
story
Repowering
the Amazon
with cleaner
energy
CONNEXION
t is good timing to schedule an EPC Summit for
São Paulo this month. We are at the start of a
decade which will continue to see the world’s
social and cultural focus turn towards Latin America — especially Brazil, as it shapes up to host
the football World Cup in 2014 and the Olympic
Games in 2016. Economically, too, the country and
the region are strongly placed. And that’s good
news for the energy sector.
Brazil and Mexico are major countries in our
domain of activity in Latin America, and companies from those countries, like Petrobras and
Pemex, are key to fueling growth. Make no mistake, there are some big players and big projects
in this region, and there is no sign of the momentum slowing.
The trends in the region are familiar from other
parts of the world but have an added Latin American flavor of their own. We see more and more
demand for renewables, illustrated by last year’s
wind auction in Brazil, in which GE won business,
and a big program under way now in Mexico and
Peru. We also see much activity in Venezuela,
Ecuador and some other countries. The oil and gas
sector in particular represents a large chunk of
investment. We expect to see more than $200 billion in investment over the next five years from
Petrobras, Pemex, PDVSA and Ecopetrol alone!
GE is now a major player in Brazil’s wind activity,
and wind is going to be a large part of what we do.
We are also strong with our Jenbacher products,
winning bids for a project in the north of Brazil.
Elsewhere, we have implemented for the first
time a pilot ethanol-burning turbine — an important innovation as the region focuses more on fuel
flexibility.
In Mexico, we took some major steps, starting
with the first large-scale cogeneration plant in the
country, with Pemex, and more recently, a win with
Manzanillo for a large combined-cycle project.
Our local presence throughout the region has
always been an important part of our success.
GE Energy employs more than 6,500 people here,
and we continue to expand that. As in other parts
of the world, the interest today is in localization,
and we are in a great position to meet that need.
It is very clear that our customers are looking for
more integrated solutions as part of sharing the
challenges they face.
So our EPC relationships are vital, giving us the
ability to develop alliances and create a value
proposition that meets customers’ requirements.
Working with EPC companies is key, which is why
we are holding an EPC Summit here. Without a
doubt, this is where the action is today! 08 l
10 l
12 l
13 l
15 l
Delivering
the nuclear
future
Steam turbines
evolve to meet
changing industry
needs
Providing solutions
across the entire
value chain
Focus on
four countries
A cleaner energy
future with Shaw
Group
Stakes
Technologies
Commitment
Latin
America
USA - Canada
GE Energy EPC Associates Magazine
16/04/10 10:40:01
As today's economic environment remains challenging,
the key to success resides in expanding our activities in new
domains around the world.
2010
A year
of expansion
T
his year is poised to be a year of expansion
for GE Energy and consequently for supporting expansion for our EPC partners as
well. We see this as an expansion of industry segments, relationships, geographical regions, and
technologies.
Why is expansion our key word this year? The
answer is simple: we're committed to driving
growth in a tougher environment.
One of the ways we're spurring development is
by expanding our global footprint. We're actively
seeking out and identifying fresh opportunities in
new regions and across a wider geographic area.
We're also moving into new sectors as different
demands arise in various regions. Increasing our
focus from primarily Utilities and Oil & Gas into
spaces with strong growth potential such as petrochemicals, steel, mining, and food & beverage
industries gives us more diverse options and takes
better advantage of our broad portfolio - creating
more opportunities for our EPC partners as well.
This new strategic focus is supported by our recent
business unit reorganization, the Industrial Solutions business which brings all of the technologies
and capabilities that GE has under one business
within our Energy Services business. This move
will allow us to offer a more comprehensive range
of commercial and industrial applications, therefore leveraging more opportunities with more customers. Throughout the year we will be showcasing this capability in several major Industrial State
of the Art events. Please check our events calendar included in this publication.
16 l
Europe
& North
Africa
A broader
horizon for
EPCs
18 l
Middle East
& Africa
Revitalizing
Nigeria's
infrastructure
19 l
Asia
& Australia
Working for
natural gas
innovation
“We’re actively seeking
out and identifying fresh
opportunities in new
regions and across a
wider geographic area.”
Magued El Daief
Global Account Executive Director
GE Energy
This expanded strategy is already particularly efficient in the fast growing renewable energy segment. To make it successful, we seek to create
more interaction between EPCs and our entire
portfolio of products and services. What does this
all mean for our valued EPC partners? The bottom
line: our sustainable growth enables us to support
our partners' expansion in a number of ways. GE
Energy is dedicated to helping EPCs withstand
industry pressures through sharing best practices and technology knowledge, creating strategic relationships, and developing cutting-edge
solutions with the most efficient and reliable technology available. Thanks to these actions, we're
building a win-win situation for ourselves and
our EPC partners. Through strong relationships
and the continued success of simple integration
of products and teams, we'll continue to help our
customers be successful in this tougher environment - together.
20 l
21 l
22 l
24 l
Managing water
in a high-growth
economy
Solving
a critical
grid issue
in Pakistan
Snapshots of
Barcelona EPC
& engineering
summit
S K Lee,
Executive Vice
President of
Hyundai Heavy
Industries
China
India
Exchange
Number 4 l April 2010connexion
GE EPCmag 4 SR ok.indd 3
Portrait
l 03
16/04/10 10:40:02
EPC teams
Around the world
Europe
Europe
– Thiebaut Bertrand
EPC Development Director.
Based in Belfort, France.
P: +33 3 84 59 35 67.
Mail: thiebaut.bertrand@ge.com
– Didier Laurent
EPC Account Executive, Europe.
Based in Paris, France.
P: +33 1 41 97 56 65.
Mail: didier.laurent@ge.com
– Pinar Sargin
EPC Account Executive,
Eastern and Western Europe,
Russia and CIS.
Based in Istanbul, Turkey.
P: +90 212 366 23 36.
Mail: pinar.sargin@ge.com
Expanding offshore
wind capacities
GE Energy will develop or expand
its wind turbine manufacturing,
engineering and service facilities
in Germany, Norway, Sweden and
United Kingdom, signaling its deep
commitment to the promising European offshore wind sector.
At the core of GE’s European expansion plans is the development
of next generation wind turbine, a
4-megawatt machine designed
specifically for offshore deployment. It will incorporate advanced
drive train and control technologies gained through acquisition of
ScanWind and feature GE’s innova-
India
– Siddhartha Ghoshal
EPC Account Executive, India.
Based in New Delhi, India.
P: +91 124 480 8104.
Mail: siddhartha.ghoshal@ge.com
tive technology that eliminates the
need for gearboxes.
“These announcements lay the
foundation for us to begin scaling
our offshore business, technology
and supply chain locally in Europe
where we see the greatest growth
opportunity.” said Victor Abate, vice
president—renewable energy for
GE Power & Water. The European
Wind Energy Association expects
that Europe’s offshore wind sector
will grow more than 70% in 2010,
with continued growth forecast
over the next several years. China
– Cheng Wen Yang
EPC Account Executive, China.
Based in Beijing, China.
P: +86 10 5822 3956.
Mail: chengwen.yang@ge.com
Asia & Australia
– Seung-chul Gong
EPC Account Executive, Korea.
Based in Seoul, South Korea.
P: +82 2 6201 4010.
Mail: seung-chul.gong@ge.com
– Vineet Mohan
EPC Account Executive
for Southeast Asia and Australia.
Based in Singapore.
P: +65 9789 2331.
Mail: vineet.mohan@ge.com
– Takeshi Shigeto
EPC Account Executive, Japan.
Based in Tokyo.
P: +813 3588 51 78.
Mail: takeshi.shigeto@ge.com
Middle East & Africa
– Jahan Barghi
EPC Account Executive, MEA.
Based in Dubai, UAE.
P: +971 4 429 6417.
Mail: jahan.barghi@ge.com
Middle East & Africa
Reinforced capabilities
for gas-turbine repair
and support
GE and Abu Dhabi Aircraft Technologies (ADAT) announced a
state-of-the-art expansion of the
Gulf Turbine Services L.L.C (GTS)
gas turbine repair facility in Abu
Dhabi, which will offer enhanced
levels of service and support for
gas turbine operators throughout
the region.
“This latest investment further expands our capabilities to provide
quality repair services to meet the
growing needs of our customers
throughout the region,” said Joseph Anis, GE Energy’s president for
the Middle East. “By localizing our
repair capabilities and ensuring
they are located closer to our customers, we can more rapidly respond to their needs in any part of
the U.A.E. and throughout the region,” Anis added.
In addition to bucket repairs, the
4,200 square meter GTS facility offers repairs for other gas turbine
components including power nozzles, fuel nozzles, combustion liners, transition pieces and rotors.
The range of machines serviced by
GTS includes GE Frame 9, 7, 6 and
5 heavy-duty gas turbines. From left to right in front row:
Robert Papp, Region Network
Leader, Middle East & Africa, Parts
and Repairs Services, GE Energy;
Stephanie Mains, General
Manager, Parts and Repairs
Services, GE Energy;
Ahmed Al Moosa, Chairman of the
Board, Gulf Turbine Services, EVP
Industrial Business, ADAT; and
Rami Qasem, General Manager,
Services Sales, Middle East
& Africa, GE Energy.
04 l GE EPCmag 4 SR ok.indd 4
CONNEXION
GE Oil & Gas selected
for GASCO’s
IGD Project
GE Oil & Gas has been awarded a
contract by Hyundai Engineering &
Construction Company (HDEC), to
supply eight gas turbines and related
services for the Abu Dhabi Gas
Industries (GASCO) integrated gas
development (IGD) project at Habshan
in Abu Dhabi, one of the largest gas
processing complexes in the world.
Combined, the eight GE Frame 6B gas
turbine units will provide more than
250 megawatts of power for the
Habshan 5 plant. All eight units will be
equipped with advanced dry low NOx
(DLN) combustors for emissions
control, lube oil systems and other
auxiliary equipment.
“The supply of reliable power for the
plant is obviously critical to the
long-term success of the project.
Selection of GE by HDEC was
approved by us considering its
technology leadership and proven
track record as a long-term partner”,
Abdul Aziz Al Ameri, senior vice
president, GASCO Major Projects
Group, underscored.
The gas turbines are scheduled for
shipment during the first half of 2011,
with commercial operation of the
Habshan 5 facility expected by the
end of 2012.
GE Energy EPC Associates Magazine
16/04/10 10:40:10
EPC teams
Latin America
USA & Canada
Cogeneration Project
in Mexico
First steps
in ethanol-based
generation
GE Energy and Petrobras celebrated the world’s first use of sugar­
cane-based ethanol in a gas turbine system to produce electricity on a full commercial scale. The operation, at the Juiz de Fora
Power Plant, is a significant milestone for Brazil, as ethanol derived from sugarcane is one of the most efficient biofuels in terms
of energy balance and carbon emissions.
The Juiz de Fora Power Plant, a simple-cycle, natural gas plant
with a total capacity of 87MW located in the south of Minas Gerais
state, has two GE LM6000 gas turbines, one of whose combustors has been modified by GE to enable the use of ethanol as well
as natural gas. This dual-fuel combustion enhances the plant’s
energy security and reliability by providing a valuable alternative
fuel source for the power plant, which previously had only one
available fuel.
As the world’s second-largest producer and largest exporter of
ethanol, Brazil will benefit from incorporating ethanol into its
thermal-generation profile.
“GE’s continued investment in research and development enables
the LM aeroderivative gas turbines to lead in technology, performance and operational flexibility,” said Darryl L. Wilson, President,
Aeroderivative Gas Turbines, GE Power & Water. “This kind of collaboration demonstrates the exciting developments that can be
achieved to provide economic, environmental and local solutions
for our customers." GE gas turbine technology will be
used to convert a conventional
power plant into the first largescale cogeneration plant in Mexico,
which will offer increased
efficiency and will supply process
steam to one of the country’s most
important natural gas complexes.
The project supports the Mexican
government’s initiative to promote
cogeneration as a key step in
improving the efficiency of the
country’s energy infrastructure.
GE will supply two Frame 7FA gas
turbines for Nuevo Pemex, a
300MW cogeneration plant located
in the state of Tabasco. GE’s 7FA
gas turbine has the capability of
burning natural gas with high
nitrogen content, which fits the
profile of the available fuel at the
Nuevo Pemex site.
The new cogeneration plant will be
owned by a consortium made up of
Abener and Abengoa Mexico, and
will be able to generate between
550 and 800 tons of process steam
per hour. Abener and GE Energy
have worked together successfully
on a wide range of global projects
to date.
– Cassandra R. Garber
EPC Communications Manager
Based in Atlanta, GA, USA.
P: +1 678 844 5353
Mail: cassandra.garber@ge.com
– Dale Livi
EPC Account Executive.
Based in North Bergen, NJ, USA.
P: +1 201 615 2473.
Mail: dale.livi@ge.com
– Talmo Martins
EPC Account Executive.
Based in Houston, TX, USA.
P: +1 713 803 0473.
Mail: talmo.martins@ge.com
– Robert W. (Bob) McKenzie
EPC Account Executive.
Based in Houston, TX, USA.
P: +1 713 803 0518.
Mail: robertw.mckenzie@ge.com
– John Muir
EPC Account Executive.
Based in Mississauga, ON, Canada.
P: +1 905 858 5161.
Mail: john.muir@ge.com
– Tom Smith
EPC Account Executive.
Based in Atlanta, GA, USA.
P: +1 678 844 6660.
Mail: tom.smith@ge.com
– Vijay Patel
EPC Account Executive.
Based in Overland Park, KS, USA.
P: +1 913 967 6274.
Mail: vijay.patel@ge.com
– Mike Thuillez
EPC Account Executive.
Based in Houston, TX, USA.
P: +1 713 803 0468.
Mail: mike.thuillez@ge.com
Latin & South America
– Andrew Morton
EPC Account Executive, Brazil.
Based in Rio de Janeiro, Brazil.
P: +55 21 3824-0617.
Mail: andrew1.morton@ge.com
Wind success in Brazil
GE will supply wind turbines for wind
farms to be developed in Brazil that will
add more than 400MW of power to the
country’s clean energy capacity. These
projects will mark the debut of GE’s
wind-turbine technology in Brazil.
In December 2009, the Brazilian government
held its first technology-specific energy
auction, focusing on wind power. Dobreve
Energia SA (DESA) was successful in the
auction, winning the bid for supplying
144MW to be built in the state of Rio Grande
do Norte. Renova Energia SA was chosen for
270MW to be built in the state of Bahia. Both
DESA and Renova have selected GE’s
1.5MW-class wind turbines for use at the
projects, which are expected to be in
commercial operation by July 2012.
“This is Renova’s first move into the wind
business and we were concerned about
reliability and efficiency in our choice of
technology,” said Vasco Barcellos, CEO of
Renova. “GE understood our needs and
brought its technical teams to work closely
with us in the final steps of development of
our projects. This, definitely, was key to
placing Renova in a singular competitive
position in the auction.” Number 4 l April 2010connexion
GE EPCmag 4 SR ok.indd 5
l 05
16/04/10 10:40:19
Success story
GE and Benco
Repowering the Amazon
with Cleaner Energy
The Manaus Power Plant
Re-Engineering Project
© ESA
Location: Manaus, Brazil
IPP: Breitener Energética
EPC: Benco
GE equipment: 46 Jenbacher
gas-fired generator sets
Project Awarded: January 2010
Initial Jenbacher generatorset delivery: April 2010
Project to be completed:
September 2010
GE Energy and the Brazilian EPC company Benco are working together to deliver 46 Jenbacher
gas-fired engines to two power plants in Brazil’s Amazon region, meeting an ambitious
installation deadline of just six months. GE
Energy and Benco Energia Ltda
were recently awarded a contract to complete an ambitious clean energy project in
the Amazon-basin city of Manaus for the Brazilian independent power producer Breitener
Energética. Breitener plans to replace the power
generation by heavy fuel-oil engines in two
existing power plants with power from 46 new,
cleaner-burning natural gas engine generator
sets supplied by GE’s Jenbacher division. Benco
will act as the local EPC supplier on the project,
overseeing the installation of the Jenbacher gensets on site.
“The Manaus project is part of a wider alliance that
Benco has with GE Energy to develop oil and gas
projects in Brazil, and we’re thrilled to be working
hand-in-hand with GE to help the Amazon region
minimize the environmental impact of power
06 l GE EPCmag 4 SR ok.indd 6
CONNEXION
production while at the same time meeting
the growing energy needs of the region’s large
population,” said Rodrigo Badin of Benco. “GE’s
advanced Jenbacher gas-fired gen-sets are the
best in the industry, and their fuel-flexible design
will enable Breitener to meet its emission-reduction
goals in a modern, efficient way.”
The Breitener power plant re-engineering project will not only significantly reduce greenhousegas emissions but will also provide a more reliable energy source for Brazil’s northern regions.
GE and Benco were recently awarded the contract
to re-engineer the two power plants based on
the strength of their unique combination of GE’s
advanced-technology, low-emission natural gas
engines and Benco’s on-the-ground engineering
and construction expertise.
The natural gas needed to fuel the new Jenbacher engines at the plants will be delivered by
a newly installed pipeline connecting the oil and
gas fields of Urucu in northern Brazil with the city
of Manaus.
The project is part of a highly ambitious, statesupported program devised by the Brazilian government to reduce the amount of greenhousegas emissions in the country projected for 2020
by between 36.1% and 38.9%. The newly re-­
engineered plants will provide a combined 120MW
of low-emission power to Manaus, northern Brazil’s second-largest city and the capital of Amazonas, Brazil’s largest state, covering more than
1.5 million square kilometers.
“GE Energy has been active in Brazil for decades,
but we only recently began working with local EPCs
like Benco jointly to deliver power-plant projects in
the region,” said Gustavo Nielsen, Area Sales Manager, Jenbacher gas engines in Brazil. “Benco’s
local expertise is a huge asset, and we look forward
GE Energy EPC Associates Magazine
16/04/10 10:40:25
“GE EnERGy hAS BEEn
ACtivE in BRAziL
foR DECADES, But wE
onLy RECEntLy BEGAn
woRKinG with LoCAL EPCs
LiKE BEnCo JointLy to
DELivER PowER PLAnt
PRoJECtS in thE REGion.”
Gustavo nielsen
Area Sales Manager in Brazil,
Jenbacher gas engines
EpC Point of view
to working hand-in-hand with Benco to deliver and
install 46 gas-fired Jenbacher engines at Breitener’s next-generation power plants in Manaus. It’s
a very exciting project, because the re-engineered
plants will bring a much cleaner, more reliable
supply of energy to the city, tapping the Amazon’s
own natural-gas resources in a way that increases
energy independence in the region.”
GE is scheduled to deliver the first four Jenbacher gas engine generator sets in April 2010.
GE’s recently expanded gas-engine manufacturing center in Jenbach, Austria, can easily meet the
engine-production capacity needed to meet Breitener’s delivery and construction schedules.
Benco will begin installation as the units arrive at
the site. working under extremely tight delivery
deadlines, Benco will leverage its on-the-ground
EPC expertise and local workforce to complete
the installation in record time. in fact, Breitener
awarded the contract to GE and Benco based
on their joint ability to deliver a high number of
high-tech gas-fired engines under a very tight
time frame. the first plant will be fully complete
by August, with the second complete one month
later.
“We knew it would be very challenging to install
46 Jenbacher gen-sets during the Amazon rainy
season under such a tight time schedule, but the
close and streamlined cooperation between GE
and Benco is what makes such an accelerated
delivery possible,” said nielsen.
number 4 l April 2010
GE EPCmag 4 SR ok.indd 7
RODRIGO BADIN
CEO Benco Energia Ltda
The Breitener project is a very special one. We have to erect a 120MW
power plant within six months in
Manaus, a very special place to work
in. it’s an island, and being surrounded
by water makes any kind of logistics
harder. we have to face high temperatures, paying extra attention to
engine performance and output, and
heavy rain almost every day makes
the civil works harder to accomplish. And Carnival occurs during this
period, which means losing a week
of work. we cannot forget to mention that Breitener complies to Petrobras' standards, and rules and procedures on working with them are very
severe, demanding extra attention
from our side.
Due to our large experience and credibility with thermal plants, GE contacted us to get to know our company better in order to choose an
EPC to work with in Brazil. After the
final approval, we were ready to go.
A few months later this first opportunity came, and we embraced it, being
confident that we would successfully
bid on this project.
GE has surprised us by paying extra
care and attention to us as the EPC
as well as to the final customer. the
Benco team is very impressed with
the commitment from GE. we have
been graced with a huge team of
specialists in many areas — mechanical, electrical, logistics, etc — which
bring special attention and real-time
solutions to a special business case,
making our job much easier and successful. So with all the challenges
we’re facing together, we’re very
happy with the general evolution of
on-site work and the customer’s satisfaction.
CONNEXION
l 07
16/04/10 10:40:41
Stakes
Delivering
the Nuclear Future
When it comes to the nuclear future, GE Hitachi Nuclear Energy (GEH) holds major
cards: relationships with key manufacturers and EPCs, leading-edge technology
deployed well ahead of the competition and a long-term commitment to its
customers. GEH Senior Vice President Danny Roderick explains. What are the prospects for the
nuclear industry in the coming years?
As we look around the industry, there are three
drivers that stand out right now. The first is climate
change and the need to find alternative energy
sources. Second is energy security. Third is finding
cost-effective energy, and nuclear’s cost is one of
the lowest there is.
These drivers are motivating governments and
private companies to take a hard look at nuclear.
The financial-market situation may have slowed
down some projects, but we still see steady
movement in Europe and Asia. Europe is particularly driven by climate and security. In Asia there
is also strong growth purely from the increase in
08 l GE EPCmag 4 SR ok.indd 8
CONNEXION
demand for energy. Countries in that region need
cost-effective ways to satisfy demand growth.
We are working hard to develop projects in India,
we have projects under construction in Taiwan
and Japan, and now we are seeing growth in the
Middle East. A factor there is the price of oil — they
maybe able to sell the oil and produce electricity
more cheaply with nuclear. We’re very active in
Egypt, Saudi Arabia and Qatar.
Do the same kinds
of factors apply in the US?
The situation in the US is more complicated,
because more private companies were affected
by the financial crisis, and the ability of these
companies to access large capital markets has
more or less dried up. Many companies are finding themselves in financial trouble because they
over-extended themselves, and they need to be
more pragmatic now.
President Barack Obama has now endorsed
nuclear more publicly than before, the government is more actively engaged, and loan guarantees have become available. With that, we will see
a steady, methodical re-start. The nuclear renaissance was never a sprint; it’s a marathon. It takes
persistence and pragmatic thinking.
In Europe, we are looking at 10-15 units in the next
10 years. In the US, it’s a little further out, more
like a 20-year horizon. But drivers will be in place
GE Energy EPC Associates Magazine
16/04/10 10:40:44
Simpler Nuclear,
Broader Portfolio
Following on from the success of its Advanced
Boiled Water Reactor (ABWR), GEH is now ready
to lead the nuclear world again with its highly
innovative Economic Simplified Boiled Water
Reactor (ESBWR).
GEH’s ABWR was the first of its kind built in the
world, and remains the only example of the
technology, with four plants in operation in
Japan and four more under construction —
two more in Japan and two in Taiwan.
The ESBWR brings a number of new features to
provide a range of benefits, including better
plant security, improved safety, more location
options, excellent economics and operational
flexibility that ultimately increases plant availability.
“We feel strongly that the ESBWR is going to be
a showcase product for us,” said Catherine
Stengel, Communications Leader for GEH.
“Having the two products, with different technologies and different sizes, allows us to cover
a market range of utilities from 1300-1600MW,
and that opens up the whole high-end market
to us.”
to replace the 104 operating reactors the US has
today and to meet new load demand.
How is the changing energy
scene affecting the EPCs?
Many of our customers are now wanting full EPC
contracts, and we are working very hard with several companies around the world on that. There is
a bigger need to go with local constructors, and
the local part of the product can be very challenging. Most significantly, customers are now wanting to find ways they can share the risk of labor.
Variances in productivity and labor costs around
the world make for a lot of uncertainty. Customers
want to find ways to share that risk with the EPC.
We have several worldwide relationships working, and we are looking to see we have the right
ones for each area — it’s hard to find one shoe that
fits all. Worldwide, the driver is to have local labor
supply, which causes each job to be a special consideration. On each job, you end up having to start
from the very beginning. But governments, utilities and private companies all know that in addition to being a solution to climate change, nuclear
does create a lot of construction and manufacturing jobs.
Some places have allowed contract language that
doesn’t hold the EPC contractor liable, others do
the opposite. But the labor risk factor can be huge,
and labor costs vary widely. Construction costs
and labor costs have traditionally balanced 50-50.
Now there is a large pool of skilled labor in India
and China, and we are seeing equipment accounting for about 70% of costs and labor 30%. The difference overall is literally billions.
What advantage does GEH hold?
We have a great technology with the Economic
Simplified Boiling Water Reactor as well as
Advanced BWR designs. Both are at the highest
standards of nuclear safety. We are the only company in the world that has actually put a Generation Three nuclear reactor design (the ABWR) into
operation.
GEH is fully committed to nuclear. We have been
in this business for more than 50 years, actively
building projects and actively developing new
technology. Now, in addition to our new-plant
business, we are actively at the front end of new
technologies. We are looking at new technologies
to be able to recycle nuclear fuel. We are developing technology for new enrichment methods.
As the market decides that the emphasis has to be
on climate change, it’s going to drive a lot of decision-making towards nuclear, and we are ready
for it. ALLIANCE
with hitachi
pays dividends
The global nuclear alliance
between GE and Hitachi
has been running for nearly
three years now and is
working to the benefit
of both companies —
and their customers.
The alliance plays to the
strengths of both companies.
For more than 50 years,
GE has been a leading
innovator in nuclear energy
technology, while Hitachi
has extensive manufacturing
experience and supply
chains for nuclear
components. Hitachi is also
a leader in the development
of many advanced modular
construction techniques.
“We continue to grow and
to learn from each other,”
said Catherine Stengel,
Communications Leader,
GE Hitachi Nuclear Energy
(GEH). “We were looking for
the most effective way to
get to the customers, and
we have found it. We bid
as an alliance, and we are
more successful that way.”
Cooperation between the
two companies is deep and
detailed. The GEH part of
the alliance, based in North
Carolina, is the formation
leader throughout the
world except in Japan,
where Hitachi GE Nuclear
Energy operates. Both
companies are committed
to selling plants for the
long-term value stream,
and the alliance has
also been particularly
effective in developing a
sustainable business for
both fuels and services.
Number 4 l April 2010connexion
GE EPCmag 4 SR ok.indd 9
l 09
16/04/10 10:40:50
tEChnoLoGiES
GE has been manufacturing steam turbines
for more than 100 years. over that time, the
energy industry has changed significantly,
and GE has adapted its steam turbine product
portfolio to meet those needs.
sTEAM tuRBinES
A TECHNOLOGY THAT EVOLVEs
TO MEET CHANGING INDUsTRY NEEDs
5,600
GE units
operating around
the world
110,000
hours
of commercial service for
the installed fleet of hEAt
steam turbines
2,400
PSi
(165 bars) operating
pressure
I
n the mid-1990s, the surge for new power
generation sparked the introduction of a large
number of combined-cycle power plants. “In
response to our customers, GE has continuously driven steam-turbine technology advancement to deliver higher efficiency and improved
operability of combined-cycle steam turbines,”
said tom Gadoury, Combined-Cycle and Renewables Product Leader.
GE has taken a systems-engineering approach
to challenge constraints in key areas affecting
performance and operability. this approach,
coupled with GE’s extensive experience in providing combined-cycle contractual services,
enabled the development of solutions like its
Rapid Response controls enhancement for A
and D series combined-cycle steam turbines.
“In addition to advanced combined-cycle steamturbine products, GE continues to offer a full
range of steam turbines for fossil-fired, integrated
gasification/combined-cycle, industrial, petrochemical, nuclear and renewable applications.
The operating GE steam turbine fleet exceeds
5,600 units around the world across this extensive application range,” Gadoury said.
Rapid Response
in a continued effort to improve performance
and operability of our combined-cycle technol10 l
GE EPCmag 4 SR ok.indd 10
CONNEXION
ogy, GE has introduced Rapid Response capability, which allows the gas turbine to be decoupled
from the steam turbine during plant startup, reducing gas turbine startup emissions, enabling
faster steam turbine output and enhancing
steam turbine operational flexibility. this capability is available on the GE 107A, 207D, 109A
and 209D combined-cycle steam turbines.
from a combined-cycle perspective, Rapid Response enables the gas turbine to reach its desired load before loading the steam turbine during plant startup. this system supports the
management of gas turbine exhaust energy to
enable improved steam-turbine loading. using
a systems-based approach, major changes to
the steam turbine design are not required to
support this capability.
Plants with Rapid Response capability provide
greater operational flexibility compared to
conventional plants. through the use of the
concept of an allowable turbine operational
space — which defines operational boundaries —
dynamic-control loading rates and split pressuretemperature loading are utilized, allowing
enhanced startup and operational flexibility.
in summary, GE’s Rapid Response technology
opens up opportunities for improving customer
value through innovative design and operation
of combined-cycle equipment.
tom Gadoury,
Combined-Cycle and
Renewables Product
Leader
GE Energy EPC Associates Magazine
16/04/10 10:41:07
what’s new ?
Looking to the future, GE has
teamed up with Mitsubishi
Heavy Industries Ltd (MHI) of
Japan to co-develop a nextgeneration steam turbine
for use in combined-cycle
power plants. Development
of a new, advanced steam
turbine is viewed by both
companies as a key step
in meeting customer
requirements for increased
combined-cycle efficiency
and performance worldwide.
Under the agreement, which
was finalized in 2009, GE and
Mitsubishi will separately
manufacture and sell the codeveloped steam turbine in
support of their respective
natural gas-fired, combinedcycle power generation
product lines. The new
steam turbine will enter
commercial service coupled
with the GE frame fB and
HEAT: High-Efficiency AdvancedTechnology steam Turbines
introduced in 2002, the GE hEAt steam turbine
offers improved efficiency and output for
f-class combined-cycle power plants, resulting
in a lower cost of producing electricity — a critical requirement for success in today’s highly
competitive power generation industry. A product certified under GE’s corporate-wide
ecomagination initiative recognizing advanced
technologies that help customers meet pressing operational and environmental challenges,
number 4 l April 2010
GE EPCmag 4 SR ok.indd 11
the hEAt steam turbine provides higher efficiency, directly translating into improved environmental performance through the reduction
of plant emissions.
twelve hEAt steam turbines are in commercial
operation in natural gas-fired, combined-cycle
power plants in the uS and Europe, in both 60hz
and 50hz applications.
the installed fleet of hEAt steam turbines has
surpassed 110,000 hours of commercial service,
with two units surpassing 20,000 hours of operation, widely regarded as an industry milestone for validating the reliability of steam turbines. those
milestone machines are operating in Burbank, California and
County Galway, ireland. in addition, four plants using GE’s hEAt
technology have received Power Plant of the year awards from
leading trade publications over
the last several years.
“Our HEAT steam turbine is a reheat technology developed for
our combined-cycle products,
also providing broad application
potential across our product
portfolio,” says Gadoury. “It incorporates numerous advances
the MHI G-class gas turbines
in the 50Hz segment of the
global power-generation
market. These gas turbine
models typically are used for
combined-cycle power plants
in the range of 850-1,000MW.
“GE has a long history of
working with other suppliers
and manufacturers to
accelerate the pace at
which advanced technology
products are brought
to market. Under this
agreement, GE and MHI are
sharing best practices and
development activities to
bring a next-generation,
high-performance steam
turbine to the combinedcycle market faster than
either company could
individually achieve,”
said Tom Gadoury, GE’s
Combined-Cycle and
Renewables product Leader.
over earlier GE steam turbines, including a reaction-based, high-pressure turbine design capable of 2,400 psi (165 bar) operating pressures,
with integral covered blades and nozzles contributing to improved steam turbine performance.
Abradable and brush sealing technologies, developed in conjunction with our GE Global Research Center, provide minimal losses while
maintaining critical operational flexibility. Extensive analysis and validation testing prior to its
first application secured the reliable operation of
the HEAT steam turbines from the first application.”
GE is at the leading edge of this technology and
continues to develop innovative steam turbine
solutions to support the world’s diverse powergeneration needs. Combined-cycle power
plants have provided and will continue to provide a competitive, economic and environmentally responsible contribution.
CONNEXION
l 11
16/04/10 10:41:08
CoMMitMEnt
At the end of 2009, GE Energy saw its business, geographic footprint and employee
headcount dramatically expand with the realignment of three existing GE businesses
into its Energy Services portfolio.
PRoviDinG SoLutionS ACRoSS
THE ENTIRE VALUE CHAIN
D
igital Energy, headquartered in Markham,
Canada, has been integrated into Atlantabased transmission & Distribution, bringing
all of GE’s Smart Grid assets into one offering.
Digital Energy’s products and services increase the
reliability of electrical power networks and critical
equipment for utility, industrial and large commercial customers worldwide, and the integration into
t&D will also help GE build critical mass in technology development. the Sensing & inspection technologies business, located in Billerica, MA, was combined with the Minden, nv-based optimization and
Control business to form a new unit called Measurement & Control Solutions. the new business shares a
diverse customer base, including power, oil and gas
and industrial segments, so there is strong potential for future collaboration. the unit’s expanded set
of complementary sensing, inspection, monitoring
and control technologies allows GE Energy to offer a
broader solution portfolio to its customers.
A new Industrial solutions business
the largest realignment was of nearly 12,000 employees in more than 40 locations worldwide under GE
Consumer & industrial’s management to form a new
Energy business. Specializing in providing an array of
low-voltage circuit breakers and distribution equipment, motor-control solutions and medium- and
low-voltage switchgear, Consumer & industrial created a great fit with the existing industrial Services
business. the new business, called industrial Solutions and based in Plainville, Ct, is an integral part
of GE Energy’s portfolio. industrial Solutions is led by
Luis Manuel Ramírez, previously vice President of
GE Energy Services’ Contractual Services unit.
12 l
GE EPCmag 4 SR ok.indd 12
CONNEXION
Ramírez told his employees in the December realign- ment projects, building construction and expansion
ment announcement: “Combined, the new Industrial into infrastructure and industrial sectors. This inteSolutions business will offer customers a more com- gration into GE Energy affords us the opportunity to
prehensive range of solutions and
deliver our core competencies as
services for a broader range of comwell as develop growth beyond the
portfolio. It is a great privilege to be
mercial, industrial and residential
leading this new business.
applications, beyond the traditional
products we offer now.
“Our footprint in the Americas, EMEA
“GE is an industry leader in integrated
and Asia — with dedicated local
equipment, systems and service. We
teams and regional headquarters —
provide cleaner, smarter and more
makes us a force to be reckoned with
efficient solutions through innovain the global industrial space.
tive technology to help our custom“Our existing GE customers will now
ers meet their business goals today
have access to the broad range of
as well as future growth expectacleaner, smarter and more efficient
Luis Manuel Ramírez
solutions GE is renowned for, and as
tions.”
we identify new offers in the greenthe business includes product vice President, industrial
management, sales, manufactur- Solutions, GE Energy
energy space, create alliances and
ing and specialized engineering
strategic agreements with others in
and around the GE Energy family, I
facilities in 11 nations to support its
global customers. its major engineering centers are am strongly confident that we will grow both our busialso R&D centers of excellence, supporting key tech- ness and reputation as the solutions provider of choice
nologies for electrical, industrial, motor, service and for our customers.”
repair solutions. in a market already served by multi- GE Energy is now one of the pre-eminent providers of
ple players, GE Energy’s reputation for innovation and solutions across the entire value chain. from power
customer-centric solutions will be a differentiator.
generation, through transmission and distribution,
“Already we are taking advantage of the fast-grow- and now into residential and commercial utilization,
ing renewable-energy segment and introducing prod- GE Energy can help customers, consumers and regucts and solutions specifically to help connect these ulators meet many of the energy, economic and envinew sources to the grid,” said Ramírez. “Being part of ronmental challenges they face today. As Ramírez
the GE Energy family is an exciting opportunity for us and his leadership team complete the integration
to develop products and innovative solutions to serve of the new industrial Solutions business, continued
our collective customers in the residential, commercial, growth and greater customer focus are the next
industrial and utility sectors.
chapter in this fast-moving GE Energy story.
“We see growth in Smart Grid, eco-friendly developGE Energy EPC Associates Magazine
16/04/10 10:41:15
razil
nuclear
LAtin AMERiCA
hydro
foCuS on
brazil
Chili
fouR CountRiES
Thermal
nuclear
oil
hydro
MEXiCo
Chili
exico
coal
Generation (2008) 234.1 TWh
Consumption (2008) 184 TWh
Thermal
gas
ENERGY MATRIX
thermal
81%
hydro
11%
nuclear
4%
others
4%
oil
biomass
coal
geotherm
GE INsTALLED BAsE
Gas turbines
7,527Mw
Steam turbines
2,996Mw
Jenbacher
22Mw
exico
rica
gas
wind
biomass
CoStA RiCA
Generation (2007)
Consumption (2007)
8.8 TWh
8.0 TWh
geotherm
a rica
ENERGY MATRIX
hydro
75%
Geothermal 13%
thermal
8%
wind
3%
Biomass
1%
wind
brazil
GE INsTALLED BAsE
Gas turbines
nuclear
237Mw
hydro
ChiLE
Chili
BRAziL
Generation (2008) 56.8 TWh
Consumption (2008) 55.8 TWh
brazil
ENERGY MATRIX
hydro
41%
Coal
27%
oil
24%
natural gas 6%
others
2%
Thermal
oil
coal
GE INsTALLED BAsE
Gas turbines
2,741Mw
Steam turbines
1,360Mw
Jenbacher
3Mw
exico
Chili
gas
Generation (2008)
497.4 TWh
Consumption (2008) 428.7 TWh
KEy
ENERGY MATRIX
hydro
82%
natural gas 6%
others
5%
oil
3%
nuclear
3%
Coal
1%
GE INsTALLED BAsE
Gas turbines
6,494Mw
Steam turbines
376Mw
Jenbacher
108Mw
wind turbines (2012) 423Mw
nuclear
hydro
thermal
oil
hydro
Coal
natural gas
nuclear
Thermal
Biomass
Geothermal
wind
oil
CONNEXION
number 4 l April 2010
l 13
biomass
coal
GE EPCmag 4 SR ok.indd 13
geotherm
16/04/10 10:41:29
LAtin AMERiCA
AN EMERGING OIL
SuPERPowER
the colossal oil fields discovered
in 2006 off Brazil’s southern coast
in the main Santos Basin area
represent a complete turning of the
page for the country’s oil industry
and have made Brazil a focal point in
the global oil and gas industry.
L
ying beneath ultra-deep waters, some
300 kilometers off the southern Brazilian coast and under layers of sand, rock
and 2,000-meter-thick salt deposits, the so-called
pre-salt or sub-salt fields of the Santos Basin may
transform Brazil’s status from self-sufficient producer into one of the world’s major crude exporters. one of these fields, tupi, is the world’s biggest
oil find since 2000 and the largest find ever in deep
waters.
CO2 re-injection challenges
“GE oiL & GAS
iS thE onLy
CoMPAny thAt
CAn AChiEvE
thESE hiGh
inJECtion
PRESSuRES in A
RELiABLE PuMP.”
fernando Martins,
vice President, Latin
America, GE oil & Gas
14 l
GE EPCmag 4 SR ok.indd 14
CONNEXION
this opportunity comes with some formidable challenges. first, the drilling platforms will be situated a
great distance from the Brazilian coast, presenting
enormous logistical and supply challenges.
Second, the tupi field lies 5,000-7,000 meters below
sea level. “This will require long drill-penetration
times unknown anywhere else in Brazil and indeed
in few other places on earth,” said fernando Martins,
vice President, Latin America, GE oil & Gas.
third, large quantities of Co2 will be extracted with
the oil and gas. Co2 combines with water to form
carbonic acid, which requires the use of special
steel alloys to prevent corrosion. Moreover, large
quantities of Co2 can’t be allowed to escape into
the atmosphere. So the Co2 will be re-injected into
the wells. Doing so will also help to reduce the viscosity of the oil, enabling higher recovery rates.
GE oil & Gas, which provides technology equipment and services for all segments of the oil and
gas industry, is already playing a critical role in
the development of the tupi field by providing
Co2-re-injection pumps that can operate at pressure of 540 bars, more than twice the usual figures and the highest pressure ever reached by a
liquid-Co2 pump.
Since rotordynamics and vibration are also critical,
Co2 re-injection pumps therefore need to be a combination of a pump and a compressor.
“Traditional pump manufacturers do not make
compressors and thus lack the engineering knowhow required for such high-pressure applications,”
explained Martins. “GE Oil & Gas is the only company that can leverage its centrifugal-compressor
expertise to achieve these high injection pressures
in a reliable pump.”
supplying oil companies
GE oil & Gas cutting-edge technology has already
been rewarded with large contracts from Petrobras, the national oil company, and oGX Petroleo
e Gas Ltda, the largest independent oil company in
Brazil. it will supply products such as MS-700 and
MS-800 wellheads systems and large bore RL-4
casing conductors.
As exploration and exploitation of these oil fields
continue, there will be more opportunities with local
and international companies in the coming years
for all the products in GE oil & Gas portfolio. EPC
contractors should also see many opportunities in
the meantime.
GE Energy EPC Associates Magazine
16/04/10 10:41:42
uSA & CAnADA
THE sHAW GROUp AND GE ENERGY BUILDING
A CLEAnER EnERGy futuRE
the Shaw Group is one of GE’s leading EPC partners. the two
global companies are working together on projects that set the
stage for a sustainable energy future.
T
he Shaw Group
has grown exponentially since it
was founded as a pipefabrication company in
1987, and today it is a
global provider of engineering, construction
and technology services
in the energy, chemicals,
environmental, infrafred Buckman
structure and emerPresident of Shaw’s
gency-response indusPower Group
tries.
Shaw and its legacy
companies have worked
hand in hand with GE Energy for more than 50 years,
and today, the two companies are plotting a course for
cleaner energy through the construction of power plants
around the globe. in the energy industry, Shaw has crossfunctional expertise in fossil fuels, nuclear and renewables, and it shares GE Energy’s goal of combining the
best of these sectors to provide integrated solutions to
meet the world’s growing power needs sustainably.
“Shaw and GE Energy share a common vision of the importance of energy to global economic growth and prosperity,
enabling that vision through the deployment of advanced
power-generation technologies that reduce environmental emissions,” said fred Buckman, President of Shaw’s
Power Group. “We’ve worked together successfully on
several combined-cycle gas turbine projects representing
thousands of megawatts of capacity and are committed
to continuing that success.”
number 4 l April 2010
GE EPCmag 4 SR ok.indd 15
the relationship between Shaw and GE is symbiotic. in
the past decade, Shaw and GE have collaborated on several CCGt projects, with GE providing gas and steam turbines and Shaw providing design integration, construction, commissioning and testing of GE equipment. on the
flip side, Shaw is also a supplier of both pipe and structural steel fabrication to GE.
through a legacy subsidiary, Shaw has also worked with
GE since the beginning of the commercial nuclear industry. As constructor of record for nine Mile 1, Shaw worked
in tandem with GE on the project, with GE providing a
boiling-water reactor (BwR). the plant began commercial operations in 1969. Shaw and GE then built five other
BwRs through the late 1980s, and GE’s BwR nuclear technology now is being used at 36 commercial reactors in
the uS. Shaw’s long-standing relationship with GE also
includes environmental services, and the two companies have worked together on more than 200 environmental projects.
Shaw purchases GE goods and services each year for
its power, chemical and environmental businesses. with
some 28,000 global employees, Shaw generated revenues of $7.3 billion in 2009.
Looking forward, Shaw and GE both plan to continue
working on power plant projects, including plant retrofits and new clean energy plants that leverage nuclear,
gas, biomass and geothermal energy.
The vastness
of shaw’s and GE’s
footprints in the
various segments
in which we pursue
projects, not only in
power generation, but
also in infrastructure
and oil and gas, make
working together
a natural fit. The
opportunities to work
together with all the
adjacent products
and services the
two companies have
in their respective
portfolios provide for
extremely creative
and competitive
offerings.
Robert w. McKenzie
Account Executive
GE Energy
CONNEXION
l 15
16/04/10 10:41:47
Europe & North Africa
Broader horizon beckons
for European EPCs
The financial crisis of a year ago impacted Europe more than some other parts
of the world, but despite this there are still opportunities that European EPCs can
explore. Didier Laurent, EPC Account Executive for the region, looks ahead to
how GE Energy and its EPC suppliers can both benefit through a broadening and
deepening of their relationship. What is the outlook in the near future for
GE Energy in Europe and North Africa?
Didier Laurent
EPC Account Executive Europe
GE Energy
16 l GE EPCmag 4 SR ok.indd 16
CONNEXION
The key thing to understand is that last year’s
financial crisis has caused project financing to
drop drastically in Europe, and energy has been
one of the most affected industries. A gap has
been created that will impact the coming years in
terms of construction. This is going to create difficulties. We are not even certain that the situation
will recover as early as next year. This year we are
seeing projects coming up, but we are not seeing
much finance yet available. There is still some
delay in bid dates and in project start dates.
There are projects coming up in Europe, mostly
in the UK, Ireland, Benelux, Germany and France.
In North Africa, you will see projects in Algeria, in
Tunisia and in Libya. There is still a lot of activity
all over the region, but only a small portion of it is
coming to reality. This is clearly an issue not just
for us but also for EPC companies.
What are the implications for GE’s European
EPCs?
We would like to cooperate with EPCs in three
directions. First, we want to create more interaction with the entire GE product portfolio. Up until
now, the focus has been mostly on large combined-cycle projects, but there are plenty of other
projects where we can go with, for example, Jenbacher engines or steam turbines.
Second, we can grow with the EPCs who have the
willingness to go outside of Western Europe, into
areas such as Latin and Central America and the
Middle East, where there are projects coming up.
GE Energy EPC Associates Magazine
16/04/10 10:41:49
5
IMpORTANTs
PRoJECtS
“thE EPCS
ARE A KEy
ELEMEnt of
ouR StRAtEGy
AS wE Go to
MARKEt.”
UNDER
CONsTRUCTION
Montoir de Bretagne, france
Customer:
GDf-suez
EpC:
Tecnicas Reunidas
Capacity:
430 Mw
Technology:
109fB combined cycle
Port de Barcelona, Spain
Customer:
GAs NATURAL
EpC:
Didier Laurent
UTE
Capacity:
2 x 425 Mw
Technology:
2 x 109fB combined cycle
Moerdjik, netherlands
it’s an opportunity for us and the EPCs to work on
other projects outside of western Europe.
third, we can look to develop together in other
types of industries, working with the EPCs in, for
example, industrial areas like mining, food and
beverages, chemicals, fertilizers, water and so on.
the combination of the GE products with the EPCs'
expertise in some of these industries will lead to
fruitful developments.
How is GE’s relationship with the EpCs changing and how are they responding?
we need to see how we can work more effectively
together, build more efficient offerings together
and establish closer relationships between our
teams. we need to push further the boundaries
of our collaboration outside of Europe in places
where we can find new opportunities to win. for
example, Spanish EPCs already have good business leads in Latin America, and there are other
EPCs with good links to the Caribbean. in the oil
and gas sector, the Middle East is clearly a target,
and even if the EPC has its hQ in western Europe,
we would like to help them develop outside that
area.
for us, EPCs are a key element of our strategy as
we go to market. we need to work with good EPC
partners! we have around 25-30 of them, and
we are working with them in a very collaborative
way.
the key challenge is to maintain the level of information between us. this is a key issue every day.
we have to make sure we know what’s going on
number 4 l April 2010
GE EPCmag 4 SR ok.indd 17
with qualified EPCs and to understand the projects which match their skills and they would like
to work on, even outside the region. our global
team helps to maintain this level of information
and communication across regions.
Customer:
Which parts of GE’s portfolio of technologies
can help the EpCs adapt?
Technology:
Jenbacher is an example; we are trying to develop
large power plants and EPCs are needed. or
aeroderivatives engines, for Combined heat &
Power solutions. we can also expand in offshore wind, where their support will help us do
the engineering and construction, or in the Smart
Grid, where we are looking for other types of EPC
skills .
we want to expand in terms of product portfolio
as well as in terms of industries. we want to bring
more of GE’s technology into the EPCs, combining
products that we didn’t try to combine in the past.
we would like to see how we can blend solutions.
Most of our business with them has been with
combined cycle. to maintain the work load on
them, it will help a lot if we can find other paths
for joint growth. the world changes all the time,
and we all have to change with it. As a business,
we need to find new solutions, and EPC companies are part of those solutions.
Essent
EpC:
Tecnicas Reunidas
Capacity:
426 Mw
109fB combined cycle
Lares, Portugal
Customer:
EDp produao
EpC:
Cobra / CME
Capacity:
862 Mw
Technology:
2 x 109fB combined cycle
Koudiet Eddraouch, Algeria
Customer:
shariket Karhaba Koudiet
Eddraouch spa
EpC:
Iberdrola Ingenieria y
Construccion
Capacity:
1.200 Mw
Technology:
3 x 109fB combined cycle
CONNEXION
l 17
16/04/10 10:41:51
MiDDLE EASt & AfRiCA
the recently awarded
Kaduna Power
Plant project will
play a major part in
realizing nigeria’s
goal of revitalizing its
infrastructure. Daniele
Scenarelli, Region
Sales Executive, SubSaharan Africa, GE oil
& Gas, talks about its
importance.
GE OIL & GAs AND ROCKsON ENGINEERING
REvitALizinG niGERiA’S
infRAStRuCtuRE
GE
oil & Gas has teamed up with
local EPC Rockson Engineering to
deliver best-in-class power solutions for revitalizing nigeria’s infrastructure.
together, they won a $230 million contract for
the installation and commissioning of a dualfired (low-pour fuel oil/gas) 150-200Mw power
plant in Kaduna, in central northern nigeria.
the project is a distinctive one for several reasons. “The Kaduna plant supports the Nigerian government’s initiative to meet the country’s growing power needs,” explained Daniele
Scenarelli, Region Sales Executive, Sub-Saharan Africa, GE oil & Gas. “Nigeria’s population continues to increase and is expected to
double over the next 30 years. If the quality of
life for millions of Nigerians is going to improve,
the supply of electricity must also substantially
increase.”
Best-in-class solutions
Collaborating with Rockson Engineering has
enabled GE to meet the specific needs of the
Kaduna project better. Rockson will supply
engineering, balance of plant, erection, commissioning, site works and a 132Kw substation
on the project.
18 l
GE EPCmag 4 SR ok.indd 18
CONNEXION
Rockson’s experience complements GE’s
long-standing presence both in the country
and the Sub-Saharan region of Africa. “There
are more than 200 GE employees in Nigeria,
based in offices in Lagos, a GE Oil & Gas Service Center in Port Harcourt and a facility in
Onne port,” said Scenarelli.
in an effort to help nigeria meet its growing
demand for electricity, GE has supplied more
than 100 gas turbines to the country. from
custom solutions in the oil and gas, energy
and healthcare industries to local inspection and servicing facilities, GE has fostered
growing relationships with both the government and private business, helping the
country reach its potential.
A global framework
for enhanced collaboration
this landmark project was developed
required close cooperation between GE
and the government of nigeria. “The Kaduna
project is a part of GE’s Country to Company
agreement with the federal government,”
said Scenarelli. “This agreement encourages
active collaboration between the two parties
in developing critical infrastructure, support-
ing Nigeria’s strategic 2020 Vision plan.”
the Country to Company strategy aims to
promote infrastructure projects across the
entire spectrum of GE’s expertise, leveraging GE’s global capabilities in these crucial
areas, which include oil and gas processing,
development and rehabilitation, distribution and transportation networks, electricpower generation, water and wastewater
treatment, healthcare, aviation and security systems.
“thE KADunA PLAnt
SuPPoRtS thE niGERiAn
GovERnMEnt’S initiAtivE
to MEEt thE CountRy’S
GRowinG PowER nEEDS.”
Daniele Scenarelli, Sub-Saharan Africa
Region Sales Executive, GE oil & Gas
GE Energy EPC Associates Magazine
16/04/10 10:41:58
ASiA & AuStRALiA
woRKinG foR
NATURAL GAs
innovAtion
founded in Japan in 1928, JGC Corporation is one of the
world’s largest EPC companies. GE and JGC have been working
together for 30 years — bringing a successful synergy of
engineering and technology to every joint project.
JGC
Corporation is not only one of Japan’s
most successful EPC companies, but
one of the most well known in the
world. the company has completed more than 20,000
technologically advanced engineering projects in 70
countries, in the fields of gas, oil, petrochemicals and
general industry. As part of its commitment to delivering the best technological and engineering solutions to
global customers, JGC has worked hand-in-hand with GE
on many projects over the last three decades.
“All of the projects JGC has done with GE have been very
large and required massive capital investments by their
owners. Therefore, on-time completion and stable production is of the utmost importance,” said Keiji Akiyama,
Chief Engineer of JGC. “GE and JGC have had for many
years a relationship built on trust and shared expertise —
from the corporate management level down to the project
staff level — that enables us to complete complex projects
together in a timely and professional way.”
number 4 l April 2010
GE EPCmag 4 SR ok.indd 19
one of GE Energy and JGC’s earliest joint projects was
the liquefied natural gas northwest Shelf Project in Australia in 1985, the world’s first use of gas turbines with
helper motors. the two companies quickly went on to
complete an LPG extraction project at the Arun LnG
Plant in indonesia the same year. Since then, GE and JGC
have worked together on oil and gas projects in Algeria,
nigeria, Malaysia, thailand, Saudi Arabia and Libya.
“JGC is one of the most respected names in the EPC industry — for their focus on customer satisfaction, cuttingedge engineering and on-time completion records,” said
taketoshi Machida, north Asia (Japan, thailand, vietnam) Sales Leader, turbomachinery, GE oil & Gas. “We
recognize a great EPC partner when we see one, and JGC
is in a league of its own.”
JGC and GE oil & Gas share many of the same core
values, including a commitment to the best technology,
a systematic approach, smart product structuring and
lean installation. they also share a drive to innovate. for
example, GE and JGC were the first to introduce singleshaft gas turbines to drive refrigerant compressors in an
LnG plant in Malaysia. Advances the two companies are
working on today include cleaner energy technologies
such as eLnG, floating LnG, modularization, micro-LnG
plants and better efficiency.
“GE shares our mission to continuously
improve plant performance through the
use of best-in-class technologies,” said
Akiyama. “Applying new technologies to
large-scale projects takes close collaboration between an EPC contractor and
its suppliers. Together, GE and JGC are
always innovating.”
A PRofiLE
of tEAMwoRK:
THE GORGON
LNG pROJECT
JGC is part of a
consortium that won the
aUD2.7 billion contract to
engineer, procure and
manage construction of
the downstream and
logistics portion of the
Chevron-operated
Gorgon LNG project in
australia. GE Oil & Gas will
provide $400 million
worth of advanced LNG
technology for the
development of Gorgon,
one of the world’s largest
untapped natural-gas
fields. GE’s technology will
also be used in the largest
ever CO2-sequestration
technology project at
Gorgon. The innovative
project will result in about
45 million tonnes less
greenhouse gas
emissions compared with
coal, or the equivalent of
taking around two-thirds
of all australian vehicles
off the road.
CONNEXION
l 19
16/04/10 10:42:10
ChinA
MANAGING WATER
in A hiGh-GRowth EConoMy
very few countries around the world are facing the water
challenge that China is. Major investments will be needed
in the coming years to face the looming crisis. Economic
growth and public health may be at stake.
B
eing home to about 20% of the world’s
population, China’s water deficits are
inevitable considering that the country has only 7% of global water resources.
the per capita share of fresh water in China,
at 2,200 cubic meters, is only one-quarter of
the world average. By 2030, when China’s
population reaches 1.6 billion, per capita
water resources will drop to 1,760 cubic
meters, close to the internationally recognized benchmark for water shortages, 1,700
cubic meters per person.
the challenge is even greater in the northern
provinces, where 42% of China’s population
lives. the area has 60% of China’s cultivated
land but access to only 14% of the country’s
water. if northern China were counted as
a separate country, its water availability —
757 cubic meters per person — would be
comparable to that of parts of north Africa,
lower, for example, than the water resources
of Morocco.
As a result of this natural water scarcity,
combined with a high-growth economy,
there are classic symptoms of water stress
looming.
Surface-water pollution is a regular issue.
water use across the “3 h” rivers — the
huang, huai and hai-Luan — actually
exceeds sustainability by a large margin.
Aquifers are being depleted faster than they
are being replenished.
however, current stress levels mainly reflect
past incentives for unsustainable water-use
patterns. “Water scarcity in China, coupled
with environmental-protection concerns, has
led the government to incite industries and
communities to develop aggressively waterreuse concepts. While the rest of the world
20 l
GE EPCmag 4 SR ok.indd 20
CONNEXION
on average reuses only 4% of water, China is
already reusing 14% of water and is looking
at 25% reuse in 2015,” observed Michel Mercusot, GE's water Partnership Leader.
China is fully aware of its water challenges,
and the government has adopted a voluntary approach in recent years. on the supply
side is the south-north water-transfer program to divert more than 40 billion cubic
meters of water — more than the total flow
of the Colorado River — to industrial and
urban regions in the hai basin, a distance of
more than 1,000 kilometers. on the demand
side, the focus is on realigning water use
with ecological capacity.
these efforts are paying dividends, but there
is still a lot of work.
“These measures were needed, but a lot
remains to do in water treatment and to
ensure clean-water availability in the future.
By combining GE's cutting-edge technologies for water purification, reuse, zero liquid
discharge and EPC companies’ engineering
capabilities, we are in a position to provide
efficient solutions to China in the short term,”
said Mercusot.
Source for all figures: united nations
Development Program, 2006
Macao MsR Water Treatment plant
A blueprint for water treatment in China
the Macao MSR water treatment Plant, commissioned in April 2008, has been built in
a nine-month span. Degremont and GE worked together to deliver the state-of-the-art
facility on a reduced footprint by combining the most advanced flotation (Aquadaf®
DAf by Degremont) and immersed ultra-filtration technology (zeeweed® 1000 by GE).
the plant is able to treat 60,000 cubic meters of clean water per day — capacity will
soon be increased to 120,000 m3/d — solving a critical issue for Macao’s water supply.
“This project certainly shows how GE and EPC companies like Degremont are able to
deliver efficient solutions with limited commissioning time. We really look forward to
using the project as a blueprint for helping China’s cities solve their water issues,” said
Michel Mercusot, GE's water Partnership Leader.
GE Energy EPC Associates Magazine
16/04/10 10:42:19
inDiA
sOLVING
A CRitiCAL GRiD iSSuE
in PAKiStAn
Karachi, one the world's largest cities with 16 million residents,
has a total peak demand on the grid of around 2,400Mw but
a generation capacity of about 1,600Mw — a critical issue for
Pakistan's economic capital.
T
o address this issue, Karachi Electric Supply Company Limited (KESC) announced it planned to
develop a number of new power projects in 2008,
including the "fast track" construction of two power plants
featuring GE's J620 Jenbacher gas engine generator
sets. KESC signed its milestone gas engine order with GE
in november 2008. the two new plants are designed to
supply Karachi's electrical grid with a total of about 180
Mw of urgently needed power. KESC stated it had selected
the Jenbacher engine technology for its durability and efficiency track record in Pakistan, which has a total installed
Jenbacher engine base of more than 800 Mw.
to help KESC fulfill its commitment to quickly deploy the
new power plants, a consortium of GE and its local Jenbacher engine distributor -- orient Energy Systems (oES)
- began site mobilization at the end of January 2009.
GE Power & water supplied the gas engines and related
equipment and also provided comprehensive engineering
and engine commissioning support as well as on-site project coordination with KESC. orient Energy Systems was
responsible for installing the engines and providing local
customer service support.
number 4 l April 2010
GE EPCmag 4 SR ok.indd 21
"working on a 'fast track' project is always challenging.
you need to work with someone you know you may rely
one. that's exactly the kind of relationship we have with
orient Energy System" says Leon van vuuren, head of
Sales Africa, Middle East, india, Pakistan, Bangladesh for
Jenbacher gas engine.
the first section of the SGtPS-2 gas engine site was turned
over to KESC on June 23, 2009, while all 64 engine units
were installed less than a year after KESC and GE first
announced the extended-scope gas engine order.
JEnBAChER
IN INDIA
We have more than 200
Jenbacher engines delivered.
The 2MW biogas powergeneration plant at Kanoria
Chemicals & Industries in
ankleshwar was the first
successfully implemented
biogas-based power plant in
India, back in 1998. and the
cow-manure methane-toenergy plant for PEDa in
Ludhiana was in 2007
awarded Best Green Power
Plant at PowerGen asia.
Until recently, however, the
tariff structure for power did
not favor development of
Jenbacher-based projects.
This situation is currently
improving, with several states
implementing reasonable
tariffs. Carbon credits are
providing to be an additional
impetus to many Indian
companies to invest in such
projects, further driving the
prospects for Jenbacher both
in the area of biogas and in
industrial applications that
use blast furnace and waste
gas, like in the steel industry.
GE's commitment to help the modernization of Pakistan's
infrastructure and economy has recently been strengthened with the signing of a Memorandum of understanding (Mou) with this country's Government last february.
the agreement focuses on the development of Pakistan's
energy resources to meet projected demand of 54,000
megawatts by the year 2020.
Siddhartha Ghoshal
EPC Account Executive
GE Energy, india
CONNEXION
l 21
16/04/10 10:42:27
EXChAnGE
Magued El Daief
,
account Execut Global
ive Director
GE Energy and
Jo
axpe Oyon from se Luis
Cobra
Installationes y
Servicos Sa .
rojects
Global P
elle, VP er & Water.
v
a
L
n
h
Jo
n GE Pow
Operatio
A year after the first
EPC Summit held in
istanbul, Barcelona
was another great
opportunity for EPC
companies and GE
Energy to meet and
discuss the landscape
and challenges of the
energy market.
sNApsHOTs Of
BARCELonA EPC
& EnGinEERinG
John Lavelle, adolf
o Martinez Virto Reunidas Energy
Division and Magu Director of Técnicas
ed El Daief.
22 l
GE EPCmag 4 SR ok.indd 22
CONNEXION
alberto Matucci,
GE Oil & Gas.
GE Energy EPC Associates Magazine
16/04/10 10:43:30
SAvE thE DAtE
GE ENERGY 2010
EvEntS
Peter W
eston,
Senior
Pr
Debt E esident & He Vice
urope,
a
GE Ene d of
rgy.
sao paulo, Brazil
April 28 & 29
EpC summit & sOA Latin America
Theme:
"Growth through technology & Partnering"
Audience: EPCs & o&G Customers
Houston, Texas
o, CEO
ir Brikh
June 14 & 15
lc.
aMEC P
Industrial summit & sOA Us
Sam
Theme:
"industrial Growth & Competitiveness"
Audience: EPCs & industrial Customers
Beijing, China
July 20 - 22
EpC summit & sOA China
Theme:
"Creating a Community of Partners"
Audience: EPCs
Round table about securing project financing.
SuMMit
New Delhi, India
August 24 - 26
Industrial summit & sOA India
Theme:
E Energy
ordoba, G
Ricardo C r Western Europe
.
fo
President and North africa
John Lavelle
,M
and Evren Er agued El Daief
su
Director for Ga , Managing
Ma Power Sy
stem.
"Growth through Local Partnering"
Audience: EPCs, industrial Customers
seoul, Korea
october 11 - 13
EpC summit & sOA Korea
Theme:
"Growth through technology & Partnering"
Audience: EPCs
Dubai, UAE
november 3 - 5
Global Engineering & EpC summit
Theme:
"Growth through innovation"
Audience: EPCs
nces and
Video recordings from the confere
on website:
nexi
Con
on
le
ilab
ava
are
roundtables
s://www.geenergy-connexion.com/
http
number 4 l April 2010
GE EPCmag 4 SR ok.indd 23
Please contact Cassandra Garber
at cassandra.garber@ge.com for more
details regarding these events.
CONNEXION
l 23
16/04/10 10:44:09
PoRtRAit
SK LEE
a PORTRaIT OF HHI’S
POWER PLaNT DIRECTOR
S K Lee is the Executive vice President of
hyundai heavy industries, one of the largest
engineering companies in the world. here,
he talks about his career — and the benefits
of working with GE on power-plant projects
around the world.
hyundai heavy
industries
by the numbers
Headquarters
ulsan, South Korea
Employees
25,240
2009 sales
$18.2 billion
2010 projected sales
$19.6 billion
Worldwide footprint
16 overseas
branch offices
and 20 overseas
subsidiaries
024 l
GE EPCmag 4 SR ok.indd 24
H
yundai heavy industries was founded in 1972, successes together in the Middle East in the last three
and just six years later, a young recruit joined years,” said Lee. “Together, we won the Saudi Arabia
the fast-growing company. S K Lee, now Exec- Marafiq IWPP in 2007, Bahrain Al Dur IWPP in 2008 and
utive vice President of hhi, first joined the compa- now the groundbreaking Kuwait Sabiya CCGT in 2009.
ny’s contract-administration department to coordi- We have found an excellent and harmonious coopernate with shipbuilders during the “blue ocean” period ation between GE and HHI in bidding as well as projfor global shipbuilding when it was just emerging as a ect execution.”
massive worldwide industry, with hhi at its helm.
Growing up in Seoul, Lee wasn’t sure what he wanted
“Joining HHI in the 1970s was like joining a rocket ship as to be until he entered college at the city’s hanyang unithe company was taking off as the largest
shipbuilding company in the world,” said
Lee. “The chance to get involved in such an
exciting company making history was an
opportunity I couldn’t pass up.”
of course, hhi went on to become one of
the largest heavy-industry companies in
the world, a major player for shipbuilding,
engineering, construction, electric systems, and engine and machinery manuS K Lee,
facturing. today, after 32 years at hhi, Lee
Executive vice President of hhi
directs the company’s global power-plant
EPC projects — a role that puts him in close
contact with GE Energy.
the two companies have completed many large-scale versity. there, he discovered a passion for industrial
power projects as EPC partners around the world, engineering that led him to seek out a lifelong career
including the Saudi Aramco 1,088Mw cogeneration building complex solutions to real-world problems.
plant and the 210Mw Shaybah power-generation “I love my job, because I get to work with the smartest
plant in Saudi Arabia, as well as the 1,245Mw Al Dur people to design projects that meet large-scale global
power challenges,” said Lee.
integrated water and power plant in Bahrain.
Currently, GE and hhi are working to complete the $2.7 “The people at GE share my passion for finding innovabillion, 2,000Mw Sabiya combined-cycle gas turbine tive technology solutions to the world’s energy needs,”
plant in Kuwait. the power-plant project, one of the he added, “and we share the same discipline, respect
most ambitious in the Middle East, will play a critical and business values. I look forward to working hand in
role in satisfying Kuwait’s electricity demand, which is hand with GE on future projects.”
growing at over 8% per year.
“GE and HHI have experienced a series of tremendous
“wE hAvE founD An
EXCELLEnt AnD hARMoniouS
CooPERAtion BEtwEEn GE
AnD hhi in BiDDinG AS wELL
AS PRoJECt EXECution.”
• Edited by GE Energy Europe Communication & EPC GLoBAL CoMMuniCAtion – 20, avenue du Maréchal Juin – BP379 – 90007 Belfort CEDEX
– 01 53 09 39 00 – www.entrecom.com
• publishing Director and Editor-in-Chief: Cassandra Garber • Design and production:
• Coordination: Nicolas Moreau • photo credits: GE / Getty / thinkstock / fotolia / hot Pixel Action / James Cohn • special thanks to Alyson Clark.
CONNEXION
GE Energy EPC Associates Magazine
16/04/10 10:44:22