GE Energy Jenbacher Plant Utilizes Waste Gas from Spanish Steel Factory


JENBACH, AUSTRIA - November 3, 2005 - GE Energy's Jenbacher gas engines have now operated for more than one year at one of the world's first cogeneration power plants to utilize waste gas generated by the production of steel.

The power plant consists of 12 Jenbacher units with a total power output of 20.4 megawatts (MW), and is located within the Aceralia factory in Avilés, Spain. Commissioning of GE's first commercial converter gas plant was completed in September 2004.

Through the end of September 2005, the 12 engines had operated at Aceralia's steel plant for a total of 98,050 operating hours.

Based on its positive prior experience with Jenbacher gas engines, GENESA (Generaciones Especiales I, S.L.), which is part of the HC Energía Group (previously HidroCantábrico), proposed the installation of Jenbacher engines to Aceralia as a solution for utilizing Aceralia's waste gas.

Aceralia is part of Arcelor S.A. of Luxembourg, the world's largest steel producer that was created by the merger of the companies Aceralia, Arbed and Usinor.

By initially investing in the installation of a Jenbacher test engine, GENESA made it possible to develop this plant, which is one of GE Energy's largest gas engine projects in Europe. GE Energy supplied 12 of its 1.7-megawatt, JMS 620 GS-S/N.LC cogeneration modules to Sidergás Energía, a company founded by GENESA for the development of the project.

The plant utilizes LD gas, which is the waste gas produced in the Linz Donawitz (LD)
steel manufacturing process, to generate electricity and steam. The electricity produced by the Jenbacher gas engines is sold to the public power grid. The steam generated from the exhaust gas is used in the steel production process of Aceralia and meets a significant portion of Aceralia's steam requirement.

"Utilizing LD gas for power generation provides steel companies worldwide the opportunity to reduce both energy costs and emissions," said Barry Glickman, general manager for GE Energy's Jenbacher gas engine division. "GENESA and Aceralia have been outstanding on this project, and we appreciate their cooperation."

Jenbacher gas engines were chosen, in part, due to their ability to burn the toxic and residual LD gas both safely and efficiently. Through the highly-efficient utilization of this low-calorific value gas for power generation, other fossil energy resources can be preserved. This project keeps the plant's NOx emissions below 500 mg/Nm3 (reference: at 5% O2). Therefore, in addition to the benefits of an independent power source, this new class of power plants can provide significant environmental benefits.

Apart from the engines, the Jenbacher team supplied the nitrogen-scavenging system, relief valves, catalytic converter, and a range of service including commissioning, operator training and maintenance for engines.

GE Energy's gas engine business has a long history in Spain and Portugal, where approximately 500 of Jenbacher's 5,000-plus engines are in operation. The business is a leader in the use of special gases, such as residual gases or gases from batteries used in coke production.

Jenbacher gas engines range in outputs of 0.25 to three MW and are equipped with patented combustion systems, engine controls and monitoring technology, allowing them to meet all relevant international emission standards, while offering high levels of efficiency, durability and reliability. GE's Jenbacher gas engine operations are based in Jenbach, Austria.

About GE Energy
GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2004 revenues of $17.3 billion. Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, transmission and distribution, distributed power and energy rental industries.

For more information, contact:
Dennis Murphy
GE Energy
+1 678-844-6948
dennis.murphy@ps.ge.com

Ken Darling or Tom Murnane
Masto Public Relations
+ 518 786 6488
kenneth.darling@ps.ge.com
tom.murnane@mastopr.com

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