Major Italian Utility Hera and GE Energy Inaugurate Model Sewage Gas-to-Energy Jenbacher Cogeneration Project


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CESENA, ITALY-November 6, 2008-Hera Forli-Cesena, one of Italy's leading multi-utilities, has selected GE Energy's Jenbacher gas engine technology for its newest cogeneration plant. The plant will utilize sewage gas to generate electricity and thermal power at a wastewater treatment facility in the northern city of Forli.

Headquartered in Bologna in the northern region of Emilia Romagna, Hera SpA is a leader in environmental, water and energy services.

The Forli project, in the province of Forli-Cesena, is one of only a few sewage gas-to-energy plants of its kind in Italy, making Emilia Romagna one of Italy's leading regions in this innovative energy application.

GE's expertise in specialty gas technology and the performance of the Savignano and Cesena cogeneration plants resulted in Hera selecting the Jenbacher engine for the Forli plant as well.

The project is designed to help reduce the treatment facility's energy costs by utilizing an available renewable energy source in support of Italy's energy and environmental priorities. As a result, the project is eligible to participate in Italy's Certificati Verdi (green certificate) trading system, which supports the production of renewable energy.

"Hera has always believed in environmental policies and practices. Technology is allowing regions of every size in Italy to act this way on behalf of their citizens," according to a statement from Hera Forli-Cesena's Technical Networks. "We are very satisfied with this project and it is our wish that our best practice is expanded to have wider community benefits instead of remaining a single success story."

The new Forli cogeneration plant features one of GE Energy's Jenbacher JMS 208 GS-L.L engines, which will use sewage gas to generate an output of 330 kWel and 400 kWth to support the wastewater treatment plant's operations. The engine is similar to the Jenbacher units operating in Hera's other sewage gas-to-energy plants in Savignano and Cesena, which are also within the Forli-Cesena system.

Sewage sludge is created as a waste product in the mechanical/biological process stages of sewage treatment plants. The sludge is dried, then transferred to a digester where the anaerobic fermentation process takes place. The fermentation produces biogas, so called sewage gas, consisting of 60 to 70 percent methane and 30 to 40 percent carbon dioxide.

The sewage gas then is sent to GE's Jenbacher engine to produce electricity, which is utilized for the operation of the whole facility. The thermal energy is used for heating the sewage sludge (37°). The engine will supply up to 50 percent of the water treatment facility's onsite power needs, thereby reducing their need for grid power.

"Our enduring collaboration with Hera is important to us and we are pleased to provide solutions that meet their needs in terms of energy savings, environmental benefits, operating flexibility and efficiency," said Mario Artoni, general manager for GE Energy's Jenbacher gas engine business in Italy. "Over the years, GE's Jenbacher engines have been selected by Hera not only for its other treatment plants in Savignano and Cesena, but also for different applications, such as a district heating project in Bologna and several waste-based power generation projects in Bologna, Forli and Ravenna."

Like the Savignano and Cesena plants, the engines at the Forli plant were installed by CPL Concordia, the company that, within the scope of a global service agreement with Hera, also will be providing maintenance and replacement spare parts to keep the plant running at optimal levels.

GE has already installed more than 800 Jenbacher units in Italy, underscoring the engines' durability, reliability and fuel flexibility needed for a variety of applications.

About Hera

Hera Group, established in 2002 by the union of 11 public utility companies in Emilia Romagna, has continued its territorial growth over the years, acquiring AGEA of Ferrara in 2004 and closing, with Meta, the first Italian merger between publicly traded multi-utility companies in 2005. In 2006 and 2007, Hera realized many other M&A activities to expand its core business.

In 2007, the group was the leading Italian multi-utility in the waste industry in terms of waste collected and treated (about 4.4 million tons treated); the second leading multi-utility in the water business before interest, taxis, depreciation and amortisation, or "Ebitda" (119 ml in 2007) and of volumes sold (241 million mc of water); the third leading player in the Italian gas business in terms of gas sold (2,337 million mc of gas); and the eighth leading company in Italy's electricity sector in terms of electricity sold (4,335 Gwh).

The group has more than 6,000 employees and operates in the provinces of Bologna, Ravenna, Rimini, Forli-Cesena, Ferrara, Modena and Imola.

Hera Forli Cesena is a company of Hera Group. Its activities focus on integrated management of water resources; integrated management of energy resources; energy plant management; planning, implementation and maintenance of public parks; environment services management; and management of other services related, or connected to, environmental protection.

About GE Energy's Jenbacher Gas Engines

GE Energy's Jenbacher gas engine business, based in Jenbach, Austria, is a leading manufacturer of gas-fueled reciprocating engines, packaged generator sets and cogeneration systems for power generation.

Jenbacher engines cover an output range of 0.25 to four MW and operate on natural gas or a variety of specialty fuels, including flare gas and coal mine gas or alternative fuels like biogas, landfill gas, wood gas, sewage gas and industrial waste gas. Patented combustion systems coupled with advanced engine and plant management systems enable customers to meet stringent international emission standards while offering high levels of efficiency, durability and reliability.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2007 revenue of $22 billion. Based in Atlanta, Georgia, GE Energy works 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.

Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges. In addition to various cogeneration applications, GE's Jenbacher biogas, landfill gas and coal mine methane engines previously received ecomagination certification, underscoring the environmental and economic benefits offered from the utilization of generating energy from high methane content waste streams.

About GE

GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com. GE is Imagination at Work.

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