[The Vector] Renewable Energy – All Eyes on GE

…..continued from earlier post

These same wind turbines have been chosen for the world’s largest wind farm, the 845MW Shepherd’s Flat project in north central Oregon. 338 turbines will be installed; GE says that this turbine yields the highest energy production in its class, building upon its earlier successful 1.5MW turbines (more than 16,000 installed worldwide.) Owned and managed by Caithness Energy, it is estimated that the Shepherd’s Flat farm will power 235,000 average U.S. homes. Operations begin in 2012. GE is a partial financier of the project, along with Google, Sumitoma Corp. and others.  Key components of the new 2.5MW turbines will be manufactured at GE’s plan in Pensacola, Florida.

GE has forged a relationship in China over the years, having previously supplied gas turbines, steam turbines, hydro and wind turbines. Last year, the company announced a new joint venture in China. GE holds 49% and a subsidiary of Harbin Power Equipment holds 51%, and the new company will manufacture GE designed wind turbines for both offshore and near-shore installations in China.

Jack Wen, president of GE Energy China, was quoted as saying. “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.”  Why would mega-force China, that already has the world’s largest wind turbine sales territory, enter into this arrangement? For one reason, it is anticipated that its market will surge by 500%, with installed capacity soaring from 25 GW in 2009 to 150 GW by 2020. This is thanks to a strong renewable energy plan.

What about solar?

While far behind its wind activity, GE is stepping in to solar. CEO Jeff Immelt identified solar as a key growth platform for the company, saying it could generate $3B in sales by 2015, as reported in the Financial Times (April 7, 2011.) GE announced it will build a 400 MW manufacturing facility in the US by 2013 to produce thin film solar panels. Most current solar modules are made with silicon wafers, but thin film solar panels use different materials that are less expensive and more flexible though not yet quite as efficient as silicon. Researchers are working at thin film technology every day.

GE researchers actually set a world record of 12.8% efficiency for thin film solar panels recently. GE invested in small thin film solar startup company, Primestar Solar, back in 2007. By 2010, the research activities were in full swing with a global team in the U.S., Germany, China and India researching and testing. GE fully expects to exceed the 12.8% mark when its commercial-scale factory opens in 2013. “14% to 15% is in the cards,” said Victor Abate at GE, who oversees solar, wind and renewable energy at the Fairfield, CT base.  Abate said that GE is confident that thin film solar has long-term advantages over other solar technologies.

GE is licensing the company eSolar’s technology using flat mirrors to concentrate sunlight to heat up water in a tank on a tower for steam; the steam runs a turbine and to generate electricity, with the design configuration such that each tower has 4MW capacity (at about 12% efficiency.) GE is using the technology in concert with natural gas for a hybrid power solution. The license is exclusive worldwide (except India and China) which also allows the construction of stand-alone thermal power plants. Solar plants cannot produce energy at night so using this technology allows power plants to cut the use of natural gas. “It’s critical for natural gas to pair well with renewable sources,” said Paul Browning, CEO of thermal products at GE Energy.

A few other projects to mention

This year, GE joined an alliance with other companies to develop the U.K. smart meter market, to help meet a government goal to install 53 million smart meters in homes and businesses by 2020. Last March, the U.K. government announced this plan to help cut electricity use and lower greenhouse emissions, which can ultimately save money. This may end up being a $6.2B market, reported Bloomberg news (June 22, 2011.)

LED lights are another interesting story at GE. Walmart engaged GE around the world for LED lighting systems inside and out. “The normally high costs of outdoor lighting can be turned into an energy efficiency bellwether for the company and the industry as a whole,” said Charles Zimmerman, VP at Walmart (GE website.) Lighting can take nearly one-third of a Walmart store’s energy consumption.  To start the project, Walmart made a 22 store in Puerto Rico – all stores now use GE’s LED lights for parking lots, which is expected to save up to 48% of the electricity use previously in place, less maintenance costs and bring a 10 year life, much longer than the traditional lighting that was used before. LED lights are also transforming the retailer’s displays indoors, and is expected to eventually transform the retail industry.

In an open letter to all on the GE website, Chairman and CEO Jeffrey Immelt and Mark Vachon, VP of ecoimagination, write that ecoimagination is working. It is, they say, GE’s business strategy to create new value by solving energy, efficiency and water problems through innovation.

In 2010, it has met each of the goals set including $5B of clean tech research investment, $85B in revenue from ecoimagination products, 30% reduction in water use and $130M in energy efficiency savings.  The company helped drive adoption of electric cars by purchasing 25,000 EVs and launching the WattStation chargers; and of course, it held the ecoimagination Challenge and helped launch 22 new ecoimagination products in 2010.

What are the GE ecoimagination goals set for the next five years?

According to Vachon and Immelt:

• Double green-tech R&D investment to $10B
• Grow ecoimagination revenue at twice the rate of GE revenues
• Reduce energy intensity by 50% and greenhouse gas emissions by 25%
• Reduce water use by 25%

What else does GE’s Immelt see on the horizon?

In a speech in Washington D.C. earlier this year, CEO Immelt weighed in on energy policy and business. He said, “Energy policy is controversial and it’s unlikely that the U.S. will lead. But how many times do we have to watch massive energy price volatility before we do something. I truly believe that the U.S. can achieve energy security through investment in energy infrastructure and R&D, and I also know we can create jobs through energy efficiency retrofit programs and other programs…”

We need, he continued, to “…improve the collaboration between government and business. History I think has proved the superiority of market economies where private initiative and individual choice are the great engines of progress. But business and government can work together to improve our competitiveness. Government should encourage business as it seeks to revitalize our manufacturing competitiveness with incentives for investing in R&D, opening new markets to our goods and trade agreements, and changing tax policies that discourage business from investing over-seas earnings back in the U.S.”

 All eyes will continue to follow GE.