global technology

Globalization Technology

2GE Company Proprietary

GE: More than a century of innovation

114-Year-Old, High-Tech, Growth Company

$150 Billion in Annual Revenues

Only Company Listed in Dow Jones Index Today That Was in Original List in 1896

315,000+ Employees Worldwide

1892

2006


Six businesses, each with a number of business units aligned for growth.

Commercial Finance

Healthcare

Infrastructure

NBC UniversalConsumer Finance

Industrial


GE Global Research: market-focused R&D

c. 1900

2006

• First US industrial lab

• Began 1900 in Schenectady, NY

• Founding principle … improve businesses through technology

• One of the world’s most diverse industrial labs

Cornerstone of GE’s commitment to technology


Global brains

Global Research CenterNiskayuna, NY

China Technology Center

Shanghai, China

John Welch Technology CenterBangalore, India

Global Research – EuropeMunich, Germany

Qatar Innovation Center

• 2,600 research employees

• 26,000 GE technologists worldwide

• GE technology spend: $5.2B

The Energy Challenge


Global energy trends and challenges …

Population … more electricity demand everywhere

Security … heightened concerns

Environment … driving today’s and tomorrow’s decisions


Power gen landscape … next 10 years

N. America China

Rest of Asia

India

W. Europe

Middle East& Africa

Latin America

E. Europe & FSUTotal capacity additions – GW (2006 – 2015)

NuclearRenewablesHydroCoal Gas/Oil

TOTAL

821243559

146

10 Year Avg AnnualCap Adds (GW)

Source: GE Energy Forecast


Power Generation Cost of Electricity

0

2

4

6

8

10

12

14

Simple CycleGas Turbine

CombinedCycle GasTurbine

ConventionalCoal

Cleaner Coal Nuclear Wind

No PTC$10 Gas$8 Gas $6 Gas$4 Gas

¢/k

Wh

CO2 g/kWh: 650 450 1000 900* 0 0*Near zero with sequestration

Market Adopting Portfolio Approach


This environment drives technology development • High fuel prices …

require higher efficiency

• Energy security … requires more diverse solutions

• More stringent environmental standards … require lower emissions, increased use of renewables and nuclear


Portfolio of affordable, reliable &environmentally responsible

technologies

Energy technology objectives

Driving cost of electricity down

Effi

cie

ncy

Reliab

ilit

y

Em

issio

ns

EfficientDiverseNuclearCoalGasWindOil GeothermalBiomassHydroSolar

NuclearCoalGasWindOil GeothermalBiomassHydroSolar

+


Doubling our research investment

Introducing more ecomagination products

Reducing greenhouse gas emissions

Make customers true partners

Keeping the public informed

1

2

3

4

5


Green technology winning in the market

WindNext-gen blades

Advanced drive trains

Innovative controls

'02 ‘06

$200 MM

$3B +


Evolution

Advanced Cooling System

GEVO 12 Engine

Reduced fuel consumption ANDreduced emissions•Reduces emissions by 40% compared to existing locomotives•Increased fuel efficiency by 3% - Saves 9,000 gallons of fuel per locomotive per year*

Common Control Architecture

*Assumes average of 300,000 gallons of fuel consumption per year

Green technology winning in the market

GE’s best bets

on energy

technologies


Gasifier

RadiantSyngasCooler

ParticulateRemoval

MercuryRemoval

Sulfur RemovalFuture CO2

Capture

Gas Turbine

ElectricityTransmission & Distribution

Steam Turbine

HRSG

Cleaner coal

•Converts coal to synthesis gas … cleaned prior to burning•Produces useful by-products•Driving down cost and emissions

– CAPEX approaching pulverized coal– Criteria emissions approaching natural gas

IGCC (Integrated Gasification Combined Cycle)


Nuclear

•Simplified design, increased output, smaller footprint … will reduce CAPEX and OPEX, and shorten construction schedule

•Part of the US Department of Energy 2010 Program, design certification submitted to NRC, selected by NuStart, Entergy & Dominion

•On plan for 2007 Combined Operation License applications

Improved safety & security

Modular & passive design

Advanced new nuclear … ESBWR

18 /GE Global Research

• 3% of Electricity Production

• Significant Growth … ~25% CAGR (’95 – ’13)

• ~40% Global Power Capital Spending

Global Renewable Installed Capacity (GWs)

Growing Demand for Renewables …

World Requiring Renewable Energy

Solutions

182160 Wind 12GW

>50% of Growth

US … 20 % Wind ‘20

UK … 20% Renewables ‘20

Germany … 20% Renewables ‘15

EU … 12% Renewables ‘10

China … 30 GW Wind ‘20

Spain … 20 GW Wind ‘11

India … 12 GW Wind ‘12 ‘05‘04

WindSolar

Biopower

Small Hydro

Geothermal

Aggressive Global Targets

Source: REN21 2006 update


Renewables … WindComplete range of products

Arklow demonstration project … 7 x 3.6s

Largest commercial operation

1.5 MW platform • Full power

conversion

• Simplified servicing

• Larger farms with easier grid integration

Future: 2.5/100 MW

• Capacity factor leadership

• High reliability

• Advanced controls

Future: 5 - 7 MW

• Leading cost of energy

• Utilize GE technology strengths

• Among the most proven and utilized technology

• Over 4,700 units worldwide

• 97%+ availability

2.5 MW platform 3.6 MW offshore


Breakthrough technology– Nano– Concentrators– Other …

Tomorrow

Integrated systems

Optimize– Reduced material– Increase efficiency – Mfg processes

COE 30 ¢/kWh

And Beyond

COE 18 ¢/kWh

Today

COE 10 ¢/kWh

Renewables … SolarDriving cost down


Longer-term Best BetsEnabling technology to deal with environmental challenges

Waste to energy

Liquid fuels

GE Company Proprietary

CO2 Capture

Hydrogen


Future of Energy Technology

•Socio-economic trends demanding technology developments

•Government, academia, industry all have a role

•No silver bullet – a portfolio approach to technologies


Green is green: energy technology that is…

Good for our customers

Good for the environment

Good for our shareholders