General Electric Company (NYSE:GE) Power and Marinus Energy are paving an inspired way to make quicker solutions to energy issues a reality. The industrial giant is teaming up with wholly-owned Ghanaian independent power producer on a first-of-its-kind waste gas to power plant project in Sub-Saharan Africa.
This 25-megawatt pilot power plant is primed to use Isopentane gas as a fuel source to power up electricity. The TM2500 power plant in Ghana will run on General Electric’s latest TM2500 gas turbines- where notably, the very Isopentane gas being utilized otherwise would have been flared. This is a big deal, translating to less emissions and a more cost-friendly energy solution; one that is both good for business as well as for the environment.
The new Atuabo Waste to Power Independent Power Project, simply dubbed “Atuabo” will bring to the table the same power needed to supply over 100,00 Ghanaian homes.
“Not only is the Atuabo waste to power plant enabling our company to lead in innovative energy solutions in Ghana, but by using a fuel source which would otherwise have been flared as waste, we are further reducing emissions and costs,” said Mr. Fred Asamany, Strategic Advisor of Marinus Energy. “This is good for our business, the climate and eliminates the potential environmental hazards facing the local community. GE is offering an innovative solution which gives us the confidence to move from pilot to commercial operations” he said.
In the first phase, Atuabo will convert the Isopentane fuel into up to 25 megawatts (MW) of power, generating enough electricity to supply power for more than 100,000 Ghanaian households. As additional gas is brought onshore, the plant is expected to add on additional gas generating units up to a capacity of 100 MW. Additional Isopentane fuel will eventually be stripped off an offshore gas supply and processed at Atuabo by the Ghana National Gas Company. The gas turbine will start on lean gas and transfer to the Isopentane mix over time, and the power plant is intended to operate at base load throughout its life.
“The TM2500 unit will provide unrivalled speed to deployment and flexibility to support the immediate needs of our customer – Marinus Energy, and then seamlessly transition to deliver capacity over the long term as they expand their operations. said Leslie Nelson, CEO of GE’s Gas Power Systems in Sub-Saharan Africa. The Atuabo project will add yet another TM2500 gas turbine to the existing fleet of ten units in the country earlier deployed in 2016” he said.
With more than 200 units deployed and over 5 million operating hours of experience, GE’s TM2500 has proven flexibility can help bridge the power gap for short- and long-term energy planning, stabilize the grid, or reach and power remote locations. The TM2500 mobile power plant – a trailer-mounted gas turbine generator and containerized balance of plant – can be relocated to other power plants during operation, and maintenance outages, or to remote areas. The TM2500 can also achieve full power approximately within 10 minutes making it ideal for providing a base-load bridge to permanent power installations or generating backup power for factories and industries.
In 2017, GE released several announcements reinforcing its commitments to strengthening the power sector in Ghana. The 400MW Bridge power project will be the first LPG fired power plant in Africa and the largest LPG fired power plant in the world, while the 200MW Amandi power plant will be one of the most efficient power plants in the country and will generate the equivalent power needed to supply more than one million Ghanaian homes. In addition, GE will set up an M&D (Monitoring and Diagnostics) center in Ivory Coast which will provide the digital data and analytics service to improve the performance of GE equipment in the region.
GE works with the government, corporate customers and other stakeholders in Ghana to support economic growth through infrastructure development in the power, healthcare and transport sectors. In 2014, GE opened a 200-capacity permanent office in Accra, and now has over 100 employees – 95% of which are Ghanaians.
Shares of General Electric opened today at $15.06, down $-0.10 or 0.67%. GE has a 1-year high of $30.59 and a 1-year low of $14.23. The stock’s 50-day moving average is $16.93 and its 200-day moving average is $20.93.
On the ratings front, General Electric has been the subject of a number of recent research reports. In a report released today, J.P. Morgan analyst Stephen Tusa maintained a Sell rating on GE, with a price target of $14, which represents a potential downside of 7% from where the stock is currently trading. Separately, on February 8, Deutsche Bank’s John G. Inch maintained a Sell rating on the stock and has a price target of $13.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Stephen Tusa and John G. Inch have a yearly average return of 8.9% and 13.6% respectively. Tusa has a success rate of 73% and is ranked #627 out of 4728 analysts, while Inch has a success rate of 77% and is ranked #641.
Overall, 3 research analysts have rated the stock with a Sell rating, 10 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $16.9 which is 12.2% above where the stock opened today.