Gasification Business Overview

GE Energy Gasification Business Overview Edward Lowe General Manager, Gasification GTC 2006 October 2006 Growing Gasification In Multiple Segments IGCC/Coal to Power • Low cost fuels/feedstock • Reduced emissions • Fuel diversity Coal to Chemicals Refinery Polygeneration Coal to Liquids (CTL) 2/ Recent Successes: North America North America • Executed License Agreements: –DKRW, Medicine Bow, Wyoming CTL Project –Erora/Tenaska, Christian County, IL IGCC –Synenco Energy, Northern Lights Upgrader, Alberta, Canada –Pet coke to ammonia, Mosaic off take agreement • Executed Heads of Agreement with BP for Global Hydrogen to Power Projects. First gasification project proposed in Carson, CA. 3 / Recent Successes: China • Signed 4 coal-to-chemical licenses in China -Coal Mine Company: Coal to Methanol -Dalian: Coal to Ammonia -Private Company: Coal to Methanol -Shenmu II: Coal to Methanol • Successful startup of 3 coal-to-chemical plants in China -Sinopec Jinling: Coal/pet coke to ammonia -Shenmu: Coal to methanol -Sinopec Nanjing: Coal/pet coke to ammonia China 4 / GE Gasification & IGCC Experience Leadership • Gasification leader since 1948 with 62 facilities operating worldwide • First coal gasification plant in 1978 • 21 gas turbines operating on synthesis gas, 900,000 operating hours • IGCC leader: >3 GW with GE technologies • >6 centuries team gasification experience 24 74 GE’s Gasification Experience ~120 Vessels In Operation Plants Operating Plants in Design or Under Construction Total Plants on All Fuels Total Plants On Solid Fuels 5 / Utilizing a Diverse Global Team … 300 Technologists Irvine China Niskayuna Houston Houston India India Poland Poland Houston, TX – process & product design & IGCC experience Niskayuna, NY – materials, design, system analysis Shanghai, China – materials, chemistry, instrumentation Schenectady, NY/ Salem, VA – controls, simulation Bangalore, India – computational, experimental Greenville, SC – design, adv materials & manufacturing Irvine, CA – gasification modeling & experimental experts Warsaw, Poland – reliability and maintenance analysis … to lower CAPEX, plus increase efficiency & RAM 6/ Investing for Success Step Increases in Product Development 10*$Y $Y 30*$Y (est.) 20*$Y Headcount 300 250 200 150 100 50 g fin taf s Avg/yr ‘01–‘04 0 ‘05 ‘06 ‘07 0 Jun04 Dec05 Dec06 Gasification Technology Power Generation Technology Advanced Technologies 7/ IGCC Launch Plants Status Gary Cleveland Fort Wayne OHIO Columbus Cincinnati INDIANA WEST VIRGINIA Indianapolis Meigs County, Ohio AEP IGCC Project • 9/05 announced FEED study • 4Q06 FEED to be complete • 2012 expected commercial start up Mason County, West Virginia AEP IGCC Project • 08/06 announced project • 12/06 FEED to be completed • 2011 expected commercial start up Edwardsport, Indiana Duke IGCC Project • 03/06 announced FEED study • 1Q07 FEED to be complete • 2011 expected commercial start up* *pending project approval 8 / GE & Bechtel Alliance IGCC Reference Plant Reference plant design cycle system Reference plant status • ASU integration & plant performance models complete • Layout being optimized, MTOs underway • Cost estimates being finalized • Reference plant design 90% complete • Nominal 630MW net plant output • RSC and GT preliminary designs complete Dec ‘06 • 7FB gas turbine combined • Fuel flexibility – Wide range of bituminous coals – Coal/coke blends 9 / Reference Plant … Enhanced Coal Envelope Program Initiated Leveraging from initial Reference Plant product – Gasification & heat recovery technology – Process & power island designs – Integrated plant models & cycle optimization – RAM modeling Economically optimizing for PRB Working with potential launch customer From Energy Information Administration, Quarterly Coal Report, October 2006 1 / 0 GE and BP Signed HOA To Accelerate Use of Low Carbon Power Generation Hydrogen Power Projects • Utilize advantaged fossil fuels (coal, petcoke) • Produce high H2 fuel gas to burn in gas turbines • Capture CO2 (~90%) • Utilize CO2 for Enhanced Oil Recovery (EOR) • Future storage in Saline Aquifers Value Through Collaboration • Combine technology company with an operations company • Leaders in gasification, power and CCS • 10 – 15 projects over next decade • Carson, CA is first gasification project Carson Hydrogen Power Project 1 1/ GE Growing Across the Gasification Segments Power Chemicals CTL Refining Accelerating technology development Partnering with industry leaders Delivering commercial solutions 1 / 2 GE Energy Gasification Business Overview Edward Lowe General Manager, Gasification GTC 2006 October 2006