GE AND ITS TURBINES GETTING BIGGER

Want to know what the potential of New Energy is to change the U.S.? Check out GE Energy.

The company got into the wind turbine manufacturing business in 2002. It has already become the biggest U.S. turbine supplier and is the 2nd biggest in the world. Its 1.5-megawatt turbine, with 11,600 sold or committed, is considered by many in wind energy to be the industry standard.

In January, GE reached total revenues of $3 billion. By July, total revenues were $4 billion. (See GE ANNOUNCES ITS FIRST $4 BIL FROM WIND) GE's goal is $6 billion by 2010. Even with the world’s economy slowing, there is every reason to believe the company can beat that goal, especially now that the U.S. Congress has extended the production tax credit for another year.

GE has recently expanded its production facilities in Germany, opening a “European Renewable Energy Center of Excellence” in Salzbergen to build more of its new 2.5xl turbines. The Salzbergen expansion brings some 160 blue collar, training and service jobs to the city. This is the kind of economic bounce GE will bring to manufacturing centers around the U.S. as it expands production of its new turbine domestically.

The 2.5xl is GE's most advanced technology, with improved power, efficiency, reliability and grid connection capability. If the new turbine is as successful as the 1.5-megawatt machine, GE may generate enough revenue to offer Wall Street a bailout package. Come to think of it, New Energy IS a sort of Wall Street bailout package.

click to enlarge

GE Energy Invests More Than $100 Million to Launch 2.5xl Wind Turbine and Services, Expands Manufacturing Operations in Europe
October 1, 2008 (Business Wire via MarketWatch)

WHO
GE Energy (Victor Abate, vice president-renewables & Ricardo Cordoba, president, GE Energy Western Europe and Northern Africa)

WHAT
GE announced it already has more than 1-gigawatt of commitments for its 2.5xl wind turbine.

View the full GE chart at Wikinvest

WHEN
- The 2.5xl orders extend over the coming year and a half into early 2010.
- GE Energy got into the wind business in 2002.

WHERE
- The bulk of GE’s 2.5xl orders are from Germany, the only country in the world with as much wind capacity as the U.S.
- GE made the announcement about passing the 1-gigawatt mark in 2.5xl orders from its new Salzbergen, Germany, manufacturing facility. Based in Atlanta, Georgia, GE Energy
- GE Energy is based in Atlanta, Georgia.

WHY
- The Salzbergen plant allows GE Energy to focus on serving the strong and growing demand for wind energy in Europe.
- Europe has been and continues to be one of the world's strongest regions for wind energy development, with a six-fold increase in installed wind capacity since 2000.
- GE expects strong European wind energy growth to continue. (Ex: A recently completed contract is for 12 turbines for an installation in Serra, in southern Italy (the 1st GE 2.5xl machines in Italy), demonstrating Italy’s move toward increased wind capacity.
- The 2.5xl: Rotor diameter of 100 meters; Advanced grid integration technology; Meets the most current stability and availability standards for European distribution networks.
- The 2.5xl is designed to meet the European need to get more power from each turbine due to the lack of available land.
- The Salzbergen plant expansion: 28,000 square meters of added property, revamped production hall and LEAN six sigma manufacturing processes to meet ramped up production of the 2.5xl wind turbines.

click to enlarge

QUOTES
- Victor Abate, vice president-renewables, GE Energy: "GE has invested more than $100 million in launching its 2.5xl wind technology, services and expanding its Salzbergen facility…"
- Abate, on the European market: "The expansion further enhances our capability to provide reliable, timely support for our customers throughout Europe…It illustrates our commitment to be a leading supplier of renewable energy technologies for Europe, operating from a local base and developing local talent."
- Ricardo Cordoba, president, GE Energy Western Europe and Northern Africa: "Across Europe, power producers increasingly are turning to cleaner, innovative ways to meet their energy needs…To meet this growing demand, GE continues to enhance our diverse portfolio of energy options, including wind, as illustrated by the expansion of the Salzbergen facility."