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GE’s bet on natural gas, renewable energy pays off

By | September 26, 2012, 1:56 PM PDT

General Electric announced today nearly $1.2 billion in new orders from power producers in the U.S., Japan and Saudi Arabia for heavy-duty gas turbines designed to start up or slow down rapidly to allow more renewable energy to be integrated into the grid.

The orders are all from GE’s FlexEfficiency 60 power generation portfolio, a series of four models of gas turbines. The company’s flagship model is the FlexEfficiency 60 combined cycle power plant, which has the capability to reach greater than 61 percent thermal efficiency, saving fuel and money and reducing emissions, the company said.

The power plant avoids 56,000 metric tons of carbon emissions per year relative to existing technology, GE said. Replacing one coal plant of similiar size would offset 2.6 million metric tons of carbon emissions annually, equivalent to taking 500,000 U.S. cars off the road.

The $1.2 billion in new sales is comprised of orders for 19 gas turbines for Japanese utility Chubu Electric Power, the Riyadh Power Plant in Saudi Arabia, the Cherokee Clean Air Clean Jobs project in Colorado, Hess Corp., and an unidentified customer in the United States. The gas turbines will be manufactured at GE’s Greenville, South Carolina plant.

GE unveiled its first FlexEfficiency natural gas power plant in May 2011, which was designed to operate at 50 Hz, the power frequency most used in countries around the world, including Europe and large swaths of Asia. At the time, GE said it would eventually release a 60 Hz version of its FlexEfficiency plant, which could be used in the U.S., much of South America, Saudi Arabia, southern Japan, Korea and Taiwan.

The company’s expansion into North America and other 60 Hz markets signals utilities and other industrial users’ shift away from coal and towards natural gas. It also illustrates a growing interest in bringing on more solar and wind energy onto the grid.

Solar and wind suffers from variability. Meaning, when the wind stops blowing and the sun sets, renewable power sources drop off, creating headaches for grid operators trying to maintain a a steady electricity supply.  GE designed its combined-cycled power plants to accommodate those fluctuations, helping to smooth out the electricity supply, save wasted energy, increase efficiency and allow for more renewable energy to be integrated into the power grid.

Photo: GE

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Kirsten Korosec

About Kirsten Korosec

Kirsten Korosec is a contributing editor for SmartPlanet.

Kirsten Korosec

Kirsten Korosec

Contributing Editor

Kirsten Korosec has written for Technology Review, Marketing News, The Hill, BNET and Bloomberg News. She holds a degree from Northwestern University's Medill School of Journalism. She is based in Tucson, Arizona.

Follow her on Twitter.

Kirsten Korosec

Kirsten Korosec

Kirsten does not have financial holdings that would influence how or what she covers.

She writes for SmartPlanet and is not an employee of CBS.

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Natural Gas Is Carbon Fuel
This attempt for power generation efficiency is a wager on the estimate of long term availability of low cost natural gas. Unfortunately it is a losing bet for fighting climate change that even Obama now is willing to take. The sources of the natural gas are shown to have environmental issues in addition to the carbon from burning the fuel. From the GE corporate perspective it will provide profits supplying technology to an international market. The higher the profits the less likely needed efforts will be made to reduce carbon, only reduce the rate of production. And that is not likely to be as much as suggested as world power loads are increasing.
Posted by tamikenn57
27th Sep
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Yes it is ...
However it's going to take a couple of decades at least to build out the renewable energy infrastructure and in the mean time natural gas is a better alternative than coal.
Posted by riverat1
27th Sep
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