New Power Plant in Northern China Powered by GE Energy's Jenbacher Coal Mine Methane Gas Engines


JENBACH, AUSTRIA - October 30, 2007 : - Four of GE Energy's ecomaginationSM certified Jenbacher coal mine methane gas engines are generating electricity at a power plant in Shentangzui, Shanxi Province in northern China as the country expands its installation of distributed power systems to address its pressing energy requirements.

The project ties in with the country's national energy Clean Development Mechanism (CDM) based on certified emissions reduction (CER) credits trading. The power generated by the Jenbacher units will be sold to the regional grid, able to serve the electricity requirements of about 97,000 Chinese homes in that region.

Unlike the typical coal mine methane power plant built at a given mine site, for this new project owned by Shanxi Yang Quan Coal Industry (Group) Co. Ltd., the methane is extracted from an active coal mine and then delivered via pumps, storage tanks and pipelines over a distance of several kilometers to the company's Shentangzui Power Plant in the prefecture-level city of Yang Quan, located 100 kilometers north of Taiyuan city, capital of Shanxi Province - one of the leading coal producing regions in China.

The new Shentangzui Power Plant features four of Jenbacher's JGS 620 GS-S.L. engines, with an electrical output of 3.044 MW each and an electrical efficiency of 40.6 percent. The generator sets were manufactured at GE's gas engine headquarters and manufacturing center in Jenbach, Austria. In addition to the generator sets, GE also provided power plant auxiliary equipment to its local authorized distributor for Jenbacher gas engines, Jebsen & Co. Ltd. The turn-key equipment supply contract for this power plant project - including the coal mine gas pre-treatment and master control system - was awarded to Jebsen & Co. Ltd in 2006.

By capturing and utilizing the coal mine methane gas - a potent greenhouse gas and available energy source in the mining industry - for power generation with Jenbacher gas engines, less of the gas has to be vented into the atmosphere.

In contrast to the dominant method of local power production - coal fired plants - utilizing this "free" waste gas for power generation will contribute to the Chinese government's sustainable development goals for the region - including improved energy security and a more circular economy, a model that effectively balances economic development with environmental and resources protection.

Installation of the Jenbacher engines in Yang Quan was completed at the site in May 2007, and start up and commissioning conducted by GE's Jenbacher business in August 2007.

"Given China's role as the world's leading coal-producing country, we are pleased to cooperate with Shanxi Yang Quan Coal Industry Group on this milestone project between our companies as China continues its efforts on curtailing industrial emissions by increasing the utilization of alternative energy sources, including methane gas from active coal mines," said Prady Iyyanki, CEO of GE Energy's Jenbacher gas engines division.

GE's Jenbacher coal mine methane gas engines are becoming increasingly popular in coal-producing countries, including in China, Australia and throughout Europe. GE's durable, cost-effective technology generates power with existing mine gas and lowers industrial emissions levels thereby lowering operating costs.

Numerous GE Energy products, including GE's coal mine gas and biogas engines, are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.

GE Energy's Jenbacher gas engine business, based in Jenbach, Austria, is a leading manufacturer of gas-fueled reciprocating engines, packaged generator sets for power generation and cogeneration systems as well as gas engines for mechanical drive applications. Jenbacher engines cover an output range of 0.25 to 3 MW, expanding up to 4 MW with its recently introduced world's first 24-cylinder J624 GS engine, which is scheduled to go into serial production in 2009. The entire Jenbacher product portfolio operates on natural gas or a variety of specialty fuels, including landfill and coal mine gas or alternative fuels like biogas, sewage gas and industrial waste gas.

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 2006 revenue of $19 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.

As part of GE's ecomagination initiative GE Energy is constantly focusing on expanding the fuel capabilities of its equipment. GE's Jenbacher engines operating on waste gases provide environmental benefits while providing customers with a technology that can generate carbon credits in certain regions. GE's carbon monetization team provides assistance to our customers in assessing whether monetization opportunities are available to further reduce the operating cost of power generation.

For more information, contact:

Martina Streiter
GE Energy
Jenbacher gas engines
+43 5244 600 2470
martina.streiter@ge.com

Ken Darling or Tom Murnane
Masto Public Relations
+1 518 786 6488
kenneth.darling@ge.com
tom.murnane@mastopr.com

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