Transcript Document
Green is Green Mark Little Senior Vice President GE Global Research November 2006 GE: More than a century of innovation 114-Year-Old, High-Tech, Growth Company $150 Billion in Annual Revenues Only Company Listed in Dow Jones Index Today That Was in Original List in 1896 1892 315,000+ Employees Worldwide 2006 2 GE Company Proprietary Six businesses, each with a number of business units aligned for growth. Infrastructure Commercial Finance Industrial Healthcare NBC Universal Consumer Finance 3 GE Company Proprietary GE Global Research: market-focused R&D • First US industrial lab • Began 1900 in Schenectady, NY • Founding principle … improve c. 1900 businesses through technology • One of the world’s most diverse industrial labs 2006 Cornerstone of GE’s commitment to technology 4 GE Company Proprietary Global brains Global Research Center Niskayuna, NY John Welch Technology Center Bangalore, India China Technology Center Shanghai, China • 2,600 research employees • 26,000 GE technologists worldwide • GE technology spend: $5.2B Global Research – Europe Munich, Germany Qatar Innovation Center 5 GE Company Proprietary The Energy Challenge Global energy trends and challenges … Population … more electricity demand everywhere Security … heightened concerns Environment … driving today’s and tomorrow’s decisions 7 GE Company Proprietary Power gen landscape … next 10 years Total capacity additions – GW (2006 – 2015) E. Europe & FSU W. Europe China N. America Middle East & Africa India Latin America Rest of Asia 10 Year Avg Annual Cap Adds (GW) Nuclear Renewables Hydro Coal Gas/Oil TOTAL 8 21 24 35 59 Source: GE Energy Forecast 146 8 GE Company Proprietary Power Generation Cost of Electricity No PTC $10 Gas $8 Gas $6 Gas $4 Gas 14 12 10 ¢/kWh 8 6 4 2 0 Simple Cycle Gas Tur bine CO2 g/kWh: 650 Combined Cycle Gas Tur bine 450 Convent ional Coal 1000 Cleaner Coal 900* Nuclear 0 Wind 0 *Near zero with sequestration Market Adopting Portfolio Approach 9 GE Company Proprietary This environment drives technology development • High fuel prices … require higher efficiency • Energy security … requires more diverse solutions • More stringent environmental standards … require lower emissions, increased use of renewables and nuclear 10 GE Company Proprietary Energy technology objectives Reliability + Emissions Nuclear Coal Gas Wind Oil Geothermal Biomass Hydro Solar Efficient Efficiency Diverse Driving cost of electricity down Portfolio of affordable, reliable & environmentally responsible technologies 11 GE Company Proprietary 1 Doubling our research investment 2 Introducing more ecomagination products 3 Reducing greenhouse gas emissions 4 Make customers true partners 5 Keeping the public informed 12 GE Company Proprietary Green technology winning in the market Wind Next-gen blades $3B + Innovative controls Advanced drive trains $200 MM '02 ‘06 13 GE Company Proprietary Green technology winning in the market Evolution Common Control Architecture Advanced Cooling System Reduced fuel consumption AND reduced emissions •Reduces emissions by 40% compared to existing locomotives •Increased fuel efficiency by 3% - Saves 9,000 gallons of fuel per locomotive per year* GEVO 12 Engine 14 *Assumes average of 300,000 gallons of fuel consumption per year GE Company Proprietary GE’s best bets on energy technologies Cleaner coal IGCC (Integrated Gasification Combined Cycle) • Converts coal to synthesis gas … cleaned prior to burning • Produces useful by-products • Driving down cost and emissions – CAPEX approaching pulverized coal Electricity Transmission & Distribution – Criteria emissions approaching natural gas Gasifier Steam Turbine Sulfur Removal Future CO2 Capture HRSG Gas Turbine Mercury Removal Radiant Syngas Cooler Particulate Removal 16 GE Company Proprietary Nuclear Advanced new nuclear … ESBWR • Simplified design, increased output, smaller footprint … will reduce CAPEX and OPEX, and shorten construction schedule • Part of the US Department of Energy 2010 Program, design certification submitted to NRC, selected by NuStart, Entergy & Dominion • On plan for 2007 Combined Operation License applications Improved safety & security Modular & passive design 17 GE Company Proprietary Growing Demand for Renewables • 3% of Electricity Production … • Significant Growth … ~25% CAGR (’95 – ’13) • ~40% Global Power Capital Spending Global Renewable Installed Capacity (GWs) Aggressive Global Targets US … 20 % Wind ‘20 UK … 20% Renewables ‘20 160 182 Wind Solar Geothermal Biopower Wind 12GW >50% of Growth Germany … 20% Renewables ‘15 EU … 12% Renewables ‘10 China … 30 GW Wind ‘20 Spain … 20 GW Wind ‘11 Small Hydro '04 ‘04 '05 ‘05 Source: REN21 2006 update India … 12 GW Wind ‘12 World Requiring Renewable Energy Solutions 18 / GE Global Research Renewables … Wind Complete range of products 1.5 MW platform • Among the most proven and utilized technology • Over 4,700 units worldwide • 97%+ availability 2.5 MW platform 3.6 MW offshore • Full power conversion • Simplified servicing • Larger farms with easier grid integration Future: 2.5/100 MW Arklow demonstration project … 7 x 3.6s Largest commercial operation • Capacity factor leadership • High reliability • Leading cost of energy • Utilize GE technology 19 strengths GE Company Proprietary • Advanced controls Future: 5 - 7 MW Renewables … Solar Driving cost down Today Tomorrow And Beyond Integrated systems COE ¢/kWh 30 Optimize – Reduced material – Increase efficiency – Mfg processes COE ¢/kWh 18 Breakthrough technology – Nano – Concentrators – Other … COE ¢/kWh 10 20 GE Company Proprietary Longer-term Best Bets Enabling technology to deal with environmental challenges CO2 Capture Hydrogen Liquid fuels Waste to energy 21 GE Company Proprietary Future of Energy Technology • Socio-economic trends demanding technology developments • Government, academia, industry all have a role • No silver bullet – a portfolio approach to technologies 22 GE Company Proprietary Green is green: energy technology that is… Good for our customers Good for the environment Good for our shareholders 23 GE Company Proprietary 24 /