General Electric Company (NYSE:GE) Power Services hits two key homeruns with one more meaningful milestone series for its visionary technology: The Advanced Gas Path (AGP) solution. This expansion leaps to the industrial giant’s fifth gas turbine fleet as well as marks GE’s first ever adoption in the cement market. GE’s first triumph points to the Kingdom of Saudi Arabia’s Saudi Cement, opening the tech doors to the 6B gas turbine fleet and the cement industry. In addition to the company’s strategic fifth gas turbine fleet is a victory with Ohgishma Power, GE’s first triumph for its 9F AGP technology in Japan.
“Since 2010, our revolutionary AGP technology has been installed on 435 units across four GE gas turbine fleets in 39 countries on five continents,” said Scott Strazik, president and CEO of GE’s Power Services business. “Now, we are expanding our AGP solution to GE 6B gas turbines to increase output and availability on our fifth gas turbine type. In certain industrial applications, the need for more megawatts, efficiency and flexibility is paramount, and our AGP technology can help cement companies like Saudi Cement’s increase their power capacity.”
In a deal that represents the first time GE’s AGP solution will be implemented to strengthen power generation productivity for the cement industry globally, GE will upgrade Saudi Cement’s three GE 6B gas turbines at its Hofuf plant in the Kingdom of Saudi Arabia. The upgrade will help Saudi Cement increase power output and efficiency while reducing the need to draw power from the national grid in support of the Kingdom’s drive towards greater economic diversification. The AGP upgrade will help scale up the combined output by a total of up to 16.9 percent across the three turbines.
Mohammed AlGarni, CEO of Saudi Cement said, “Power supply is both a key input and one of the major costs in our manufacturing process. Reliable, efficient electricity supply is thus essential to the continuous operations of our facility as well as our competitiveness. GE’s Advanced Gas Path upgrade solution will allow us to improve efficiencies and become more self-sufficient in power production.”
GE also announced two other milestones with its AGP technology:
- GE signed a $52 million agreement with Dubai Electricity and Water Authority (DEWA) to install its AGP technology on three GE 9E gas turbines at the Jebel Ali Power & Desalination Station. The upgrade will be installed next year. The agreement aims to increase energy production, improve efficiency and reduce carbon emissions in the future. It supports efforts to achieve the Dubai Carbon Abatement Strategy, as well as improving DEWA’s production efficiency, which increased by 28.86% between 2006 and 2017. The necessary improvements will be made to extend the life cycle of the gas turbines for an additional 12 years, increase production, improve efficiency and reduce emissions from these turbines.
- In its first 9F AGP installation in Japan, GE signed a service agreement with Ohgishma Power Co. Ltd., a subsidiary of Tokyo Gas Co. Ltd. and Showa Shell Sekiyu K.K, to upgrade three GE 9F gas turbines with AGP, DLN2.6+ and OpFlex* technologies at the Ohgishima Power Station in Kanagawa. The upgrades will help Ogishima to improve efficiency by 2.5 percent and reduce its emissions level to 15 ppm nitrous oxide to help Tokyo Gas remain competitive and profitable in very dynamic power industry”.
- GE’s AGP solution offers customers a range of performance advancements that can be tailored based on their operational, business and energy market needs. It has delivered significant market-based benefits around the globe, including saving customers $775 million a year and providing about 7 gigawatts of additional power capacity. AGP technology is helping to generate nearly 19.4 million additional megawatt-hours of power a year, which is enough to power equivalent of approximately 2 million homes.
TipRanks indicates Wall Street is evenly split between the bulls, the bears, and mostly the sidelined. Out of 12 analysts polled in the last 3 months, 3 are bullish on GE stock, 6 remain sidelined, while 3 are bearish on the stock. With a slight return potential of nearly 3%, the stock’s consensus target price stands at $15.06.