China is Expected to Expand Its Wind Power Capacity by 500% by 2020
GE Extends Its Commitment to Delivering Cleaner, Efficient, Reliable Technology for Its Customers
BEIJING - September 28, 2010 - GE (NYSE:GE) today announced a joint venture with Harbin Electric Machinery Co., Ltd. (HEC), a subsidiary of Harbin Power Equipment Co., Ltd. (HPEC), to manufacture and supply wind turbines to its customers in China. The deal enhances GE's ability to compete in China's $13 billion wind industry segment.
China, already the world's largest wind turbine sales territory, is projected to grow an additional 500 percent as the country's installed wind capacity increases from the 2009 level of 25 gigawatts to 150 gigawatts by 2020. Overall, China's electricity demands are growing at a rate of 12 percent per year and the government's supportive renewable energy policies played an important role in GE's decision to invest in the joint venture.
"This is an important investment in China for GE and one that will enable us to participate in the tremendous growth potential of the Chinese wind turbine segment," said Jack Wen, president and CEO of GE Energy China. "By teaming up with Harbin, GE can deliver our advanced wind power solutions to our local customers in China to help meet the country's need for cleaner energy."
The new company will manufacture GE-designed wind turbines for near-shore* and offshore applications in China. Under the new joint venture, HEC will own 51 percent and GE 49 percent of the company. As part of the overall wind partnership, HEC is purchasing a 49 percent interest in the existing GE Shenyang Wind factory, which will continue to manufacture land-based wind turbines.
"We're proud of our long-standing relationship with GE," said Mr. Gong Jing Kun, chairman of Harbin Electric Corporation. "Since 2004, Harbin Power Equipment Co., Ltd. has partnered with GE to provide 9FA heavy duty gas turbines and related services in China. This new joint venture will combine our capabilities as a supplier of power generation technologies with GE's capabilities as a premier wind turbine generator technology provider to allow us to deliver superior wind technologies to customers."
GE will work with the new joint venture to develop wind turbines for offshore projects in China using direct drive technology. The joint venture will also provide customer and sales support, as well as commissioning and maintenance service to help customers maintain their fleet.
With 14,000 wind turbines installed worldwide comprising more than 21 gigawatts of capacity, GE's current wind product portfolio includes onshore and offshore wind turbines with rated capacities ranging from 1.5 to 4.0 megawatts. The workhorse of the GE fleet, the 1.5-megawatt wind turbine, is the most widely deployed megawatt-class wind turbine in the world. GE has been active in China's energy sector for nearly a century and has supplied the country with a wide range of products including more than 270 gas turbines, 70 steam turbines, more than 300 hydro turbines and 935 wind turbines.
Near-shore wind turbines are classified as wind turbines installed on land within three kilometers of the nearest shoreline, or lying on the water within 10 kilometers of the shore.
Harbin Electric Corporation (HE) is the first power equipment enterprise China established since 1949, having more than 60 years history. It has become the biggest production and export base for power generation equipment, warship driving devices and complete set of power equipment in China. At recent years, HE expanded its portfolio to renewable energy field, covering nuclear, wind, bio-gas, tide, etc. Based on self-innovation, it has successfully developed the first land-based 1.5 MW wind turbine using 'direct drive' technology.
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's website at www.ge.com.
GE serves the energy sector by developing and deploying technology that helps make efficient use of natural resources. With nearly 85,000 global employees and 2009 revenues of $37 billion, GE Energy www.ge.com/energy is one of the world's leading suppliers of power generation and energy delivery technologies. The businesses that comprise GE Energy-GE Power & Water, GE Energy Services and GE Oil & Gas-work together to provide integrated product and service solutions in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels.
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Masto Public Relations
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Masto Public Relations
Phone: + 1 518 786 6488