New Venture to Advance Development and Deployment of Coal Gasification Technologies in China
SHANGHAI-May 10, 2012-GE (NYSE: GE) announced today the
opening of GE Shenhua Gasification Technology Company Ltd.,
a 50-50 joint venture (JV) with
Shenhua Group to advance the development and deployment
of "cleaner coal" technology solutions in China.
The new company combines GE's expertise in industrial
gasification technologies with Shenhua's expertise in coal
gasification and coal-fired power generation. The JV will
sell industrial gasification technology licenses in China,
conduct research and development to improve cost and
performance of commercial-scale gasification and
Integrated Gasification Combined Cycle (IGCC) solutions
and work to advance to distribution of commercial-scale
IGCC.
Gasification is a technology that converts coal into a
synthesis gas (or syngas) that can then be used to produce
chemicals or other products. Gasification technology has
become a critical tool in the expansion of the Chinese
economy, allowing a wide variety of industrial products and
fuels to be created from low-cost abundant coal resources.
With more than 50 licensed facilities in China, GE's
gasification technology is one of the most widely deployed
in the industry.
Shenhua is one of the world's largest coal and energy
companies, with integrated coal production, power
generation, railway, port and shipping infrastructure.
Shenhua also has a national role in the development of new
coal-related technologies such as coal-to-liquids and
carbon sequestration. The company established the first
demonstration projects for direct coal liquefaction,
coal-to-olefins (MTO) and coal-to-polypropylene (MTP),
utilizing gasification technology. Through these efforts,
the company has built significant expertise in the
development of coal-to-chemicals facilities and in the
operation of coal gasification systems over a range of
technology configurations. Shenhua also has developed deep
expertise in carbon utilization and management through CCS
research and development.
"Both GE and Shenhua have worked together for years in
China on important projects, including the Shenhua Baotou
coal-to-olefins facility, which uses GE's gasification
technology. The collaboration will create a leading
gasification technology business in China with significant
local presence, focus, resources and expertise," said Wang
Xiaolin, deputy general manager of ShenhuaGroup.
"Coal plays an important role in the economies of both the
U.S. and China, and gasification technology allows us to
use this abundant and low-cost resource in a much cleaner
way," said Paul Browning, president and CEO of Thermal
Products, GE Energy. "This joint venture is an evolution of
the strong gasification business GE has in China today.
Each business will contribute technology, operational and
service expertise to create a comprehensive gasification
and cleaner coal technology and service provider in
China."
China and the U.S. are the two biggest energy consumers in
the world. With rising concerns about oil prices (now above
USD $90 per barrel), energy security and global warming,
the world's largest developed country along with the
biggest developing country have much to learn from each
other. Progress can be made by collaborating on
technologies that improve efficiency, reduce harmful
emissions and contribute to the development of a more
diverse and secure energy future.
The collaboration between GE and Shenhua demonstrates
increasing efforts in the United States and China on
working together for cleaner energy solutions, with a focus
on cleaner coal.
The new JV will further strengthen GE and Shenhua's
existing relationship. Jack Wen, GE Energy China CEO
emphasizes, "This is not a market access in exchange for
technology deal. Instead, this will be a two-way technology
win, with both GE and Shenhua benefiting from each other's
expertise." This means both sides will work together to
generate new advanced gasification technology and business
solutions, to better serve existing customers as well as
explore new business opportunities.
About GE
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