Stock Update (NYSE:GE): Korea’s GS Power Selection of 7HA Gas Turbine Marks 17th General Electric Company HA Order

In the peak of summer, Korea’s GS Power is preparing for winter. The company has selected General Electric Company (NYSE:GE)’s high efficiency 7HA.02 gas turbine, and associated clutched steam turbine, for a new combined-cycle power plant in Anyang, Korea. This marks the 17th order for GE’s HA gas turbine technology, which also celebrates its first commercial shipment to Électricité de France this month, and the first U.S. groundbreaking for two future Exelon plants in Texas.

District Heating for Korea
Anyang, a suburb outside of Seoul, experiences temperatures as low as -18 degrees Celsius, or zero degrees Fahrenheit, in the winter months. District heating, a network that distributes centralized heat to a concentrated population, helps mitigate these cold conditions and is GS Power’s primary application for the HA technology in Korea. One hundred percent of the steam generated by the new plant has the potential to be used for district heating in winter months.

“GE’s 7HA technology has the largest steam exhaust energy output in the world, which will help us maximize our district heating needs in Anyang,” said Eung-Hwan Kim, Vice President, GS Power. “This output is a huge advantage for our customers, especially as we use this technology to replace the 23 year old aging plant.”

GE’s 7HA.02 gas turbine is the world’s largest and most-efficient 60-hertz gas turbine. In full power mode, it achieves more than 61% efficiency and in district heating mode it achieves more than 91% efficiency. The plant will have the capacity to generate 935 megawatts of power in combined cycle mode, the equivalent output needed to power 900,000 Korean homes.

“We’re proud to work with GS Power to help serve Korea’s district heating need as efficiently and cost-effectively as possible,” says Vic Abate, president & CEO, power generation products at GE Power & Water. “As the world’s largest and most efficient gas turbine, our HA technology is flexible to help serve very specific needs, like district heating in Korea, around the world.”

First Commercial Shipment and U.S. Site Ground Breaking
On June 29, GE shipped its first commercial HA gas turbine, a 9HA.01, to national French utility Électricité de France (EDF). The voyage from GE’s facility in Belfort, France to EDF’s future site in Bouchain, France, spans just over 330 miles. During this journey, the entire convoy – which is 109 meters long (358 feet), 6.65 meters wide (22 feet) and 5.7 meters high (19 feet) – must navigate roads, railroads and bridges to deliver the unit safely and on time to EDF. Read more about the journey here.

Concurrently, last week GE joined Exelon in Texas to celebrate the groundbreakings for the first HA power plants in the United States.  Exelon will add more than 2,000 megawatts of capacity to the Texas grid using four GE 7HA.02 gas turbines, and associated steam turbines and generators. The combined-cycle gas turbine plants will be built at Exelon’s existing Wolf Hollow site, near Dallas, and Colorado Bend site, near Houston.

With the GS Power project, 17 HA units have been ordered and 61 HA units have been technically selected* by customers around the world. In addition to Korea, GE’s H-class technology has been embraced by customers in Japan, the United Kingdom, Brazil, the United States, France, Russia, Germany, Turkey, Egypt and Argentina.

GE’s latest HA gas turbines build off the learnings of both its operating fleet of more than 4,500 air-cooled heavy-duty gas turbines with accumulated operation of more than 180 million hours and its decade of steam-cooled H-class gas turbine operating experience. GE technology advancements are fueled through the long history of its Aviation business and innovations from its Global Research Center. (Original Source)

Shares of General Electric opened today at $26.98 and are currently trading up 0.64% at $26.94. GE has a 1-year high of $28.68 and a 1-year low of $23.41. The stock’s 50-day moving average is $26.93 and its 200-day moving average is $25.75.

On the ratings front, General Electric has been the subject of a number of recent research reports. In a report issued on June 26, William Blair analyst Nicholas Heymann reiterated a Hold rating on GE, with a price target of $30, which represents a potential upside of 11.2% from where the stock is currently trading. Separately, on June 18, Deutsche Bank’s John G. Inch maintained a Hold rating on the stock and has a price target of $29.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Nicholas Heymann and John G. Inch have a total average return of -4.0% and 12.8% respectively. Heymann has a success rate of 25.0% and is ranked #2991 out of 3707 analysts, while Inch has a success rate of 83.3% and is ranked #808.

Overall, 3 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $33.00 which is 22.3% above where the stock opened today.


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