GE's Biogas Engines to Power China's Largest Ethanol Production Plant

o GE's Jenbacher Biogas Technology to Help China Boost Ethanol Production and Generate Renewable Electricity for Regional Grid

o Technology Reducing Carbon Emissions by 1.1 Million Tons per Year

JENBACH, AUSTRIA - Supporting China's efforts to increase the use of biogas for renewable energy production and in motor vehicles, GE (NYSE: GE) is supplying its ecomagination-approved Jenbacher biogas engine technology to power China's largest ethanol production plant under construction in the city of NanYang, Henan Province. Owned by Henan Tianguan Group, China, the new ethanol production plant will produce 500,000 cubic meters of biogas per day, based on organic material from cassava[1] plants.

A 36-megawatt (MW) onsite power plant featuring GE's Jenbacher engines is being built in multiple phases to support the ethanol plant's operations. Both new facilities are being built adjacent to the company's existing ethanol production facility, which uses a biomass digester system to convert cassava- instead of grain[2]-into ethanol in China.

For the 11-MW first phase of the new onsite power plant, GE is supplying four of its J620-biogas engine units. The gas engines will utilize the ethanol production facility's waste methane biogas to generate renewable electricity, which Henan Tianguan Group plans to sell to the regional grid. GE's biogas engines also will use methane gas created by the anaerobic digestion of cassava biomass to produce renewable electricity for the site.

With an impressive overall 82.8 percent efficiency rate (electrical efficiency, 42.8 percent; thermal efficiency, 40 percent), the new biogas power plant will provide Henan Tianguan Group with crucial operational and energy savings.

By using biogas instead of traditional fossil fuels to generate electricity for the ethanol facility, when the 36-MW biogas power plant is fully operational, it is expected to reduce the equivalent of 1.1 million tons of carbon emissions a year.

"Installing GE's Jenbacher biogas engines at our ethanol production facility will offer clear environmental benefits and help us achieve significant energy efficiency gains to help us generate more profits and become more competitive throughout the region," said Zhang, Xiaoyang, chairman of the Henan Tianguan Group.

In addition to the power sold to the grid, Henan Tianguan Group also will receive financing support through the sale of carbon credits since the project has been registered with the Clean Development Mechanism, an international carbon trading program.

"The Henan Tianguan ethanol project represents a milestone application for gas engines in China's growing ethanol segment," said Prady Iyyanki, CEO-gas engines for GE Power & Water. "While GE's Jenbacher engines have already been used for numerous landfill, animal waste and coal mine methane projects in China and throughout Asia, our fuel-flexible technology is ideally suited to help China and other countries around the world rapidly expand the use of biogas in addressing their energy security and environmental concerns."

For example, Iyyanki noted that GE's biogas engine technology is positioned for growth in countries like Brazil, where ethanol already plays an important role in the country's fuel options.

GE's Jenbacher engines and associated equipment were scheduled to be delivered to the project site starting in April 2011. After completion of engine installation and commissioning, the biogas power plant is scheduled to begin operating in July 2011.

About GE

GE (NYSE: GE) is an advanced technology, services and finance company taking on the world's toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at

GE also serves the energy sector by providing technology and service solutions that are based on a commitment to quality and innovation. The company continues to invest in new technology solutions and grow through strategic acquisitions to strengthen its local presence and better serve customers around the world. The businesses that comprise GE Energy Power & Water, GE Energy Services and GE Oil & Gas-work together with more than 90,000 global employees and 2010 revenues of $38 billion, 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; as well as other alternative fuels and new grid modernization technologies to meet 21st century energy needs.

[1] Cassava is a shrubby, tropical, perennial plant that is used in a variety of food products, the same way potatoes are used in the United States.

[2] According to the WorldWatch Institute, the National Development and Reform Commission (NDRC)-China's top policy planning agency-the country has been replacing its use of grain as the main feedstock for ethanol production with more economical plant materials. The switch is expected to alleviate rising concerns over food security as Chinese use of grain for ethanol threatens to compete with domestic food production needs.

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