GE’s Distributed Power on-Site Technologies Supporting Algeria’s Soaring Energy Needs

With more countries in Africa expanding their use of natural gas-fueled on-site power technologies to address their domestic energy demands, GE’s Distributed Power business (NYSE:GE) today announced orders for eight trailer-mounted GE TM2500+ aeroderivative gas turbine-generators and the first Jenbacher gas engine project in Algeria.

The new orders are the latest in a series of major power generation technology supply agreements announced over the past year between GE and Algeria’s energy industry. Energy demand in Algeria is estimated to be growing at an average annual rate of approximately 14 percent, rising from about 12 gigawatts (GW) to 24 GW by 2017. The government is aggressively investing in the energy sector to boost power generation capacity.

The projects mark the third order with GE’s TM2500+ aeroderivative gas turbines for subsidiaries of Algeria’s national electricity and gas company Sonelgaz and the first order for Jenbacher gas engines for an industrial plastic goods factory owned by Plastpaper. Both projects underscore the region’s push to deploy faster, more flexible power generating capacity.

“With best-in-class efficiency and operator flexibility, our TM2500+ aeroderivative gas turbines will demonstrate how on-site power technology can help ensure the availability of electricity for municipal and industrial customers throughout Algeria,” said Lorraine Bolsinger, president & CEO—GE Power & Water’s Distributed Power. “GE is committed to being the country’s growth partner by supporting the development of the country’s energy infrastructure and supporting local employment and training opportunities.”

TM2500+ Units Helping the Algerian Electricity Generation Company Meet Peak Power Demands

Under the terms of a $161 million contract, GE’s Distributed Power business is helping Algeria address its peak power demands and strengthen local grid reliability by supplying Sonelgaz with a fleet of eight TM2500+ aeroderivative gas turbine-generators on an expedited basis. The eight units are scheduled to begin commercial operation at the beginning of August 2014. The highly reliable, fast-start, economical and efficient TM2500+ units are being installed in multiple locations near existing electrical substations. They can operate on either gas or liquid fuel and will supply electricity to support peak demands and to increase grid reliability. The contract also includes related services, which GE will supply in combination with partner Power Projects Limited, the Turkish subsidiary of METKA S.A., a leading international engineering contractor.

Known as GE's “Power Plant on Wheels,” the TM2500+ is derived from jet-engine technology powering the world’s airlines. Engineered for flexibility and quick dispatch, it is ideal for providing a baseload bridge to permanent power installations or for generating additional or backup power in support of periods of high electrical demand, disaster relief, plant shutdowns or equipment maintenance. It is available for 50hertz and 60hertz applications, reaches full power in 10 minutes or less, offers low emissions and has a small footprint for sites where space is limited.

First Gas Engine Order for GE in Algeria

GE’s 1-megawatt (MW) Jenbacher J320 natural gas engine will be supplied to Plastpaper’s industrial plastic goods factory in the city of Oran. Plastpaper is installing the gas engine to ensure the factory has a more reliable supply of electricity and to prevent grid disturbances from affecting the facility’s plastics extrusion production process. This marks the first Algerian on-site power project with gas engines in the country. The project will showcase how GE’s gas engines are a cost-effective alternative to diesel generators for grid support and industrial energy security.

GE’s Distributed Power orders are the latest in a series of contracts GE has received to help expand Algeria’s domestic power generation capacity. For example, in September 2013, GE announced several contracts with Sonelgaz valued at a total of US$2.7 billion for combined-cycle gas power plant equipment and TM2500+ aeroderivative gas turbines. The two companies also announced a joint venture to build a new gas and steam turbine production facility in Algeria that will eventually produce more than 2 GW of power generation equipment annually.

GE Power & Water’s Distributed Power business is a leading provider of power equipment, engines and services, focused on power generation at or near the point of use. Distributed Power’s product portfolio includes GE’s aeroderivative gas turbines and reciprocating engines, which generate 100 kilowatts to 100 MW of power for numerous industries globally. Headquartered in Cincinnati, Ohio, Distributed Power employs about 5,000 people around the world.

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About GE Power & Water

GE Power & Water provides customers with a broad array of power generation, energy delivery and water process technologies to solve their challenges locally. Power & Water works in all areas of the energy industry including renewable resources such as wind and solar, biogas and alternative fuels; and coal, oil, natural gas and nuclear energy. The business also develops advanced technologies to help solve the world’s most complex challenges related to water availability and quality. Power & Water’s six business units include Distributed Power, Nuclear Energy, Power Generation Products, Power Generation Services, Renewable Energy and Water & Process Technologies. Headquartered in Schenectady, N.Y., Power & Water is GE’s largest industrial business.

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