Transcript Document

Green is a Business
Opportunity
2008 Business Future of
America's Conference
Lorraine Bolsinger
June 27, 2008
Challenges & Opportunities…
Gross Domestic Product
Resource Scarcity
1B+ water…grows to 5B+
Raw material inflation
Energy Security + Cost
Increasing demand…fossil
fuels under pressure
Flat world…wealth disparity
2006
Regulation
2030
G7 Countries
E7 Countries
Near consensus on climate
change… legislation nearly
certain
2 /7/7/2015
Impacting Our Customers…B2B
Operations
- Resource Costs
EHS, Gov’t. Relations Regulations
Demand
Growth
Resource
Constraints
Strategy, Finance
- Risk & Uncertainty
Human Resources
- Employee Attitudes
Communications
- Public Opinion
R&D, Marketing
- Market Demand
Every function involved
3 /7/7/2015
Global Recognition
4 /7/7/2015
GDP…CO2
2.0
USA
EU
Japan
India
FSU
China
Indexed Growth
1.5
1.0
0.5
2.0
1.5
1.0
0.5
1980
1990
2000
1980
1990
2000
1980
1990
2000 2005
per-capita GDP
CO2 emissions
How do we de-couple?
5 /7/7/2015
Modified Source: Raupach, Michael R. et al. (2007) Proc. Natl. Acad. Sci. USA 104, 10288-10293
CO2 legislation/”carbon cost” inevitable
Global tons carbon/yr (billions)
}
14
Projected
growth
7
1
= 1B tons of carbon/year
• 7 “wedges” required
Historical
• 16 “wedges” identified
• GE plays big in 12 of 16
0
2005
Source: Princeton Univ.
2055
6 /7/7/2015
…GE’s big plays
Low carbon power Low carbon fuels
Efficiency
Renewables
Buildings
Water Treatment
Appliances
Lighting
Transport
Wind Turbines
Solar Power
Biogas Engines
Energy Finance
Natural Gas
Aircraft Engines
Locomotives
CO2 Capture
BP H2 Joint Venture
Synfuels Technology
Biomass
Energy Finance
Water Treatment
Large-Frame Turbines
LM Turbines
Fuel Cell H2
Base Load
Coal Plants
Energy Services
Water Treatment
Forests & agriculture
IGCC Cleaner Coal
ESBWR Nuclear
Broad participation in “carbon management”
7 /7/7/2015
ecomagination…a business strategy
1.Grow revenues to $20B
2.Double R&D to $1.5B
3.Reduce GHG
4.Inform public
8 /7/7/2015
Revenue…$20B by 2010
$25B
Revenues ($B)
Eco products in every
business
23
21
$20B Rev by ’09
17
• Cross-business offerings
14
–Green hospital
–Eco homes
11
9
–Waste water-to-value
'05
'06
'07
'08
'09
'10
9 /7/7/2015
R&D…$1.5B by ‘10
R&D Investment ($B)
• >$1B “clean tech” fund
• Product portfolio
–’05-’07 17
1.5
1.4
60
1.2
• Future Technologies
1.1
0.9
–CO2 capture
–Zero liquid discharge
0.7
–Alternative fuels
–Waste to Energy
–Demand Side Mgt
'05
'06
'07
'08
'09
'10
10 /7/7/2015
Lower Emissions & Energy
• Beating all emissions &
energy targets
• 700 kT CO2 reduced
–(-8%) from ‘04
• $100 MM ’07 energy
savings
C&I Biomass Waste Heat Recovery
Gas engine
waste heat
Biomass heat
Compressor
waste heat
Out of service
blds.
Hungary
• Engaged teams
• Lean, “Treasure Hunts”
& GE solutions
Jenbacher Gas Engine
11 /7/7/2015
Outreach…public policy influence
Legislation
Advocacy
EU
Korea
Middle East
Thought-Leadership
Friedman
Schwarzenegger
12 /7/7/2015
Outreach…PR impact
Press
Award-winning ads
Website
13 /7/7/2015
Time to step-up…5th goal
• Adding a fifth goal…20%
water use reduction ’06-’12
• Highlight the growing issue
and opportunities for savings
• Influence potential industry
standards
• Showcase our customers &
GE sites
14 /7/7/2015
Business impact …
Brand
Reputation
Scale
Rank Company
Revenue
($millions)
172 Avnet
14,254
173 ConAgra Foods
14,172
174 Fluor
14,079
176 Chubb
14,003
177 Enterprise GP Holdings 13,991
178 Qwest Communications 13,923
15 /7/7/2015
Green is a Business Opportunity
Global Carbon
Markets
Green Buildings
Alternative Energy
Venture Investment
US Green-Inclined
Consumers
US Crude Oil Spot
Price
Hybrid
Vehicle Sales
From energy to real estate, businesses are facing the very real
opportunities and challenges of climate change and the environment
16 /7/7/2015
Water…portfolio approach
Desalination Solutions:
Municipal Solutions:
Product Water:
Residential Products:
Drawing on the ocean’s virtually limitless
water resources, GE’s desalination
technologies are helping water scarce
regions to create new freshwater
sources that can quench growing
demand.
Facing unprecedented growth and water
demand, cities are turning to GE’s
advanced membrane and water quality
measurement technologies to tackle
increasingly stringent water and
wastewater regulations and the threat of
new, virulent pathogens in our lakes and
rivers.
Consumers use the products they trust –
whether it is pharmaceuticals, food, or
beverages. As brands expand globally,
GE technologies ensure high quality
ingredient water for manufacturing
regardless of a plant’s location or its
water source.
GE point-of-use and point-of-entry
filtration systems are enabling
homeowners to produce higher quality
water from every tap in the home. This
same technology is helping developing
countries to leapfrog traditional, costly
infrastructure and provide safe water to
those who need it most.
Desalination
Solutions
Municipal
Solutions
Utility Solutions:
GE is optimizing system efficiency &
increasing uptime in cooling towers and
boilers by reducing energy usage and
greenhouse gas emissions. Advanced
monitoring systems reduce the risk of
pathogen growth, such as Legionella, in
cooling systems.
Utility
Solutions
Product
Water
Process Chemicals &
Separations:
Process
Chemicals &
Separations
Silently working in pipes, tanks and
process fluids, GE’s advanced chemicals
protect valuable production assets from
corrosion and fouling faced in day-to-day
operations, while improving overall
manufacturing efficiency and quality.
Residential
Products
Industrial Wastewater:
Once considered a by-product, GE’s
water reuse technology is transforming
industrial wastewater into a sustainable,
new water source that can often be used
many times over—dramatically reducing
the strain on our precious water
resources.
Industrial
Wastewater
17 /7/7/2015
Water…creating new sources
“1 Billion people are impacted by water
scarcity today…5+ Billion by 2025”
Sulaibiya plant in Kuwait City
Water produced for irrigation
Frees up fresh water for human
consumption
375,000 cubic meters/day
World’s largest membrane based
wastewater filtration project
18 /7/7/2015
Water…helping industry
Beverage Manufacturing
–GE installed 28 systems that recover
50-70% of reject/brine
–Customers include:
•Cadbury-Schweppes •Nestle
•Nor-Cal Beverage
•Niagara Water
•Coca-Cola •Pepsico
–28 systems recover more than 750
million gallons per year
19 /7/7/2015
Energy…diverse portfolio to meet any
outcome
Gas
Biomass
Wind
Nuclear
Cleaner Coal
Solar
Environmental
Services
T&D
Asset
Optimization
20 /7/7/2015
Wind
Products
Industry installation forecast
1.5 MW
platform
(GWs)
~32
Asia
Pacific
32%
2.5 MW
platform
North
America
29%
15.0
7.8
Europe
37%
3.6 MW
offshore
~$6B+ in ‘08
ROW 2%
‘03
'03
‘06
'06
’09E
'09e
Source: BTM Consult, March ‘08
21 /7/7/2015
Wind … most economic large scale
renewable
Cost of Electricity nearing mainstream
20 year levelized
US ¢ per kWhr
20
15
~8
Gas
10
~7.5
~6 ~8.0
~30+
~10
Coal Nuclear Wind Biomass Solar
Basis: $8.00/MMBtu NG
5
‘85
‘95
‘05
• Fixed cost of electricity
• Energy security
• Zero air emissions
22 /7/7/2015
GE Company Proprietary
Solar
Cost-shared, three-year
cooperative agreement with
the U.S. Department of
Energy
Thin film investment
Minority equity interest in
emerging thin film company,
PrimeStar Solar, Inc.
Research & development key
Technology driving cost of electricity
Solar America initiative
Today
Integrated systems
On and off-grid
applications
Tomorrow
Optimize
– Material science
– Increase efficiency
– Value chain
And beyond Breakthrough
technology
– Thin film
– Nano scale materials
23 /7/7/2015
Biomass
Bio power growth
Global installed
capacity (GW)
16
Asia & rest
of world
Europe
3.5
U.S.
'02
'20
0.25MW to 4MW
Source: Frost&Sullivan
Gas engines
(Unit volume)
Efficiency, reliability
& fuel flexibility
1200
8,000 units installed
– 2,600 biogas, landfill
& sewage gas
480
‘03
‘07
24 /7/7/2015
Fuel options
Keeping costs down by using readily available resources …
diversity of supply and increasing efficiency
Fossil fuels
natural gas and oils
Synthetic & industrial
lower caloric value
Biofuels
Biodiesel and ethanol
Flexibility in aviation, marine, gas engines, turbines and locomotive
25 /7/7/2015
Energy…cleaner, greener steel
Jenbacher Gas Engines
• Utilize waste gases for cogen
• Maximize CO2 fuel efficiency
Blast Furnace Gas
•
•
•
•
Frame 9E gas turbine…fuel flexibility
Reduce 2MM tons CO2
2.4B kWh of electricity/year
160 tons of steam/year
26 /7/7/2015
Cleaner energy…greener steel…in the news
The market value of these carbon credits is estimated at 150 million euros.
Fulvio Conti, Enel CEO, said the company purchased the credits at about 8
euros per ton … The reduction of CO2 emission will be achieved through
five energy-efficient projects, including combined cycle power plant, in
which the waste heat is used to generate additional electricity, thus
enhancing the efficiency of electricity generation.
27 /7/7/2015
Waste to Value
Brewery Example
Solution
• Recycled wastewater: conserves
fresh water intake and reduces
disposal costs
• Biogas generation: reduces
electricity and natural gas expenses
• Renewable credits: derived from
clean power and recycled water
Potential Impact
• Recovered water : >94%
• CO2 reduction : 13,000 tons/yr
• Biogas generation : 400 kW
• Anticipated Payback : 3-4 Years
ZeeWeed
Membrane Bioreactor
+
Jenbacher
Bio-gas Engine
Gasification…cleaner trash
Market
Germany:
$120/ton
~77k t/d
US Overall:
$35/ton
>600k t/d
Japan:
$250/ton
~120k t/d
US Northeast:
$71/ton
>110k t/d
Korea:
$350/ton
80k t/d
India:
>500k t/d’
Process
High Energy Electrical
Plasma Breaks Down
Hydrocarbons into
Fundamental Constituents
Recycled Metals
from Gasifier
Vitrified
Slag – Unrestricted
Use
• 2.3MM tons/day of MSW worldwide,
growing to 5.1MM tons/day by 2020
• $125B market needs alternatives to
landfill and incineration
• Large GHG/CO2 market opportunity
• High Temperature Gasification
(1500C)
• 250:1 volume reduction
• Syn Gas converts to : chemical
feedstock, liquid fuels, or electricity
• Energy positive 900 kWh/ton,
~15-20% electricity need
29 /7/7/2015
Financial services
Carbon management
Verification
• GE AES Greenhouse Gas Services
– Global market ~ $1-5B by ’12
$3+ Billion Renewable Energy Portfolio
Projects
• $6B by ’10
Geothermal 2%
Biomass
5%
Solar
6%
Venture Capital 1%
Hydro
6%
Wind 80%
7000+ MW
Market Segment Diversity
Energy Tech Equity
• Diverse technologies, sectors, geography
• A step toward partnership
Oil & Gas
Technology
Energy
Smart Grid
(5%)
Efficiency (11%)
Technologies
(8%)
Battery
Technologies/
Energy Storage
(30%)
Renewable
Energy (46%)
30 /7/7/2015
Customer collaborations
31 /7/7/2015
Green is a Business Imperative
“Any company that develops
technologies based on a lower
carbon footprint and on the
more-efficient use of scarce
resources will have greater
access to and acceptability in
the markets that will develop
across the world”
Dr. Rajendra Pachauri
Chairman, IGPCC & 2007
Nobel Peace Prize recipient
32 /7/7/2015
33 /7/7/2015