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: [email protected] – Didier Laurent EPC Account Executive, Europe. Based in Paris, France. P: +33 1 41 97 56 65. Mail: [email protected] – Pinar Sargin EPC Account Executive, Eastern and Western Europe, Russia and CIS. Based in Istanbul, Turkey. P: +90 212 366 23 36. Mail: [email protected] 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: [email protected] 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: [email protected] Asia & Australia – Seung-chul Gong EPC Account Executive, Korea. Based in Seoul, South Korea. P: +82 2 6201 4010. Mail: [email protected] – Vineet Mohan EPC Account Executive for Southeast Asia and Australia. Based in Singapore. P: +65 9789 2331. Mail: [email protected] – Takeshi Shigeto EPC Account Executive, Japan. Based in Tokyo. P: +813 3588 51 78. Mail: [email protected] Middle East & Africa – Jahan Barghi EPC Account Executive, MEA. Based in Dubai, UAE. P: +971 4 429 6417. Mail: [email protected] 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: [email protected] – Dale Livi EPC Account Executive. Based in North Bergen, NJ, USA. P: +1 201 615 2473. Mail: [email protected] – Talmo Martins EPC Account Executive. Based in Houston, TX, USA. P: +1 713 803 0473. Mail: [email protected] – Robert W. (Bob) McKenzie EPC Account Executive. Based in Houston, TX, USA. P: +1 713 803 0518. Mail: [email protected] – John Muir EPC Account Executive. Based in Mississauga, ON, Canada. P: +1 905 858 5161. Mail: [email protected] – Tom Smith EPC Account Executive. Based in Atlanta, GA, USA. P: +1 678 844 6660. Mail: [email protected] – Vijay Patel EPC Account Executive. Based in Overland Park, KS, USA. P: +1 913 967 6274. Mail: [email protected] – Mike Thuillez EPC Account Executive. Based in Houston, TX, USA. P: +1 713 803 0468. Mail: [email protected] Latin & South America – Andrew Morton EPC Account Executive, Brazil. Based in Rio de Janeiro, Brazil. P: +55 21 3824-0617. Mail: [email protected] 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 [email protected] 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