Rapid economic growth across Asia Pacific has led to the demand for power to soar, fuel prices to rise and environmental and financial regulations to tighten. As a result, generators are looking for ways to improve efficiency and flexibility while reducing costs and environmental impact, and they are increasingly turning to companies such as General Electric Company (NYSE:GE) for solutions. Today at the POWER-GEN Asia conference, GE announces more than $1 billion in orders from customers across the region, demonstrating the growing demand for GE’s power generation systems and software.
“Customers in this region are challenged to generate high-efficiency power and reduce emissions,” said Ramesh Singaram, president of Power Generation, Asia Pacific, GE Power & Water. “With GE technology, they have the opportunity to add power to the grid as quickly as possible, safeguard the environment and still realize critical life cycle cost savings.”
GE’s current Asia Pacific gas turbine fleet consists of more than 1,000 units across 15 countries, comprising the largest gas turbine portfolio in the region. GE units can deliver from 16 megawatts (MW) of power up to 510 MW, the equivalent power that would be needed to supply more than 1 million homes in countries such as Japan and Korea.
Singaram said that GE is well-positioned to help Asia Pacific customers, with more than 18,500 GE professionals working in the region and accessibility, resources, service and sales support in more than 10 countries. GE has repair centers in Japan, Indonesia and a repair center of excellence in Singapore. GE’s comprehensive solutions, he said, help customers throughout Asia Pacific manage such issues as fuel prices, environmental regulations and the need for fuel flexibility.
Customers across Asia Select GE Power Solutions
In Thailand, GE is announcing six new LM6000-PF+ aeroderivative gas turbines for Gulf Energy Development (GED). The units will be used for three combined-cycle plants to help increase efficiency and generate additional power. The LM6000-PF+ has reached its highest efficiency yet, 56 percent, and can go from zero to full power in less than 10 minutes.
“We have faith in GE and believe that by choosing the LM6000-PF+, which is recognized for its increased performance and flexibility, it should serve our requirements fittingly for the specific project conditions. Moreover, it is a bonus for us to be the first country in the world to get this product,” said Ravi Kurmahorita, GED’s EVP Business Development.
Additionally, the Electricity Generating Authority of Thailand (EGAT) will be utilizing GE’s suite of upgrade solutions on four 9F gas turbines at two of its power stations in Bangkok to increase output, enhance efficiency and reduce fuel consumption costs while lowering emissions. Collectively these measures both increase the reliability of the power supply and reduce electricity costs for Thailand’s residents.
“By working with GE to increase the flexibility and efficiency of our power plants at EGAT North and South Bangkok, we are strengthening power security for our country in the event of different gas compositions while also improving air quality around Bangkok and reducing fuel consumption,” said Mr. Charin Kanjanarat: EGAT Assistant Governor—Generation 1. “Energy efficiency and environmental protection are priorities that support Thailand’s growth policies, and we implemented strong measures to reduce and control our environmental impact.”
In Vietnam, GE will be providing two high-efficiency, supercritical steam turbines and generators for Petrovietnam’s Long Phu 1 coal-fired power plant. This technology is more environmentally friendly as compared to conventional subcritical boiler technology.
“Long Phu 1 power plant will serve the growing demand in the south of Vietnam and help improve transmission efficiencies for the whole of Vietnam by locating much needed power closer to the demand,” said Dr. Nguyen Tien Vinh, general manager of power division, Petrovietnam. “Working with GE, we look forward to implementation of this project and ongoing success.”
In Japan, GE is announcing its largest-scale replacement project at Tepco Yokohama Thermal Power Station where it will replace and upgrade the components of eight gas turbines ranging from 9FA.01 to 9FA.03 models. Additionally, Chubu Electric will be utilizing GE’s Advanced Gas Path (AGP) solution to upgrade eight 7F gas turbines at Joetsu Thermal Power Station. Combined, the two power plants generate a total of 5,180 MW, the equivalent power that would be needed to supply 1.4 million homes in Japan. The plants account for 2.5 percent of the country’s energy supply and underscore the important role that natural gas is expected to play in Japan in the coming years.
“GE’s proven AGP solution gives us the ability to improve thermal efficiency by 0.7 percent and reduce the fuel costs and CO2 emissions of our Joetsu Thermal Power Station,” said Chubu Electric Power’s Akira Kuriyama, Executive Officer, General Manager of Thermal Power Department Power Generation Division. “In addition, the AGP solution contributes to improved durability of the equipment itself and extends maintenance intervals from three years to four years, which helps to improve our competitiveness by reducing operational costs and shortening downtime for maintenance.”
The products and services that GE will spotlight at POWER-GEN Asia include:
- GE’s high-efficiency HA gas turbines. The world’s largest and most efficient turbines, the largest model can generate 510 MW. They lead the industry in total life cycle value. Eight HA turbines are on order for companies in Japan and Korea, and GE has seen heavy bidding from countries such as Thailand, Malaysia, Singapore, Indonesia, Taiwan and the Philippines. GE has received a total of 17 HA orders and 64 HA technical selections globally in 12 countries.
- GE’s latest LM6000 PF+ aeroderivative gas turbine. Ideally suited for customers needing flexible power as quickly as possible, it offers the highest output (52 MW) and combined-cycle efficiency (56 percent) in the LM6000’s 25-year history and can be installed in half the time as earlier models.
- GE’s D850 high-efficiency supercritical steam turbines. These help demonstrate how efficiently coal can be used as part of an environmentally sound energy mix.
- GE’s high-performance AGP. GE is expanding its AGP program in the Asian region to more effectively control the overall fuel and life cycle maintenance costs of gas turbines. GE also provides crucial technologies and services to upgrade the output and efficiency of existing combined-cycle power plants while lowering emissions. (Original Source)
Shares of General Electric closed yesterday at $24.82. GE has a 1-year high of $28.68 and a 1-year low of $19.37. The stock’s 50-day moving average is $25.85 and its 200-day moving average is $26.17.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on August 24, Deutsche Bank analyst John G. Inch maintained a Hold rating on GE, with a price target of $29, which implies an upside of 16.8% from current levels. Separately, on July 20, UBS’s Shannon O’Callaghan reiterated a Buy rating on the stock and has a price target of $32.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John G. Inch and Shannon O’Callaghan have a total average return of 11.5% and 16.6% respectively. Inch has a success rate of 78.6% and is ranked #669 out of 3742 analysts, while O’Callaghan has a success rate of 79.5% and is ranked #102.
The street is mostly Bullish on GE stock. Out of 7 analysts who cover the stock, 4 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $33.00, which implies an upside of 33.0% from current levels.