GE Energy

GE’s Gasification Developments

Edward LoweGeneral Manager, Gasification

Gasification TechnologiesCouncil

October 10, 2005

2

GE Acquired ChevronTexaco’s Gasification Business June 30, 2004

GE Discusses ‘Clean Coal’ Plants in Bid to Market New Technology

3

GE Is Delivering Gasification Solutions WorldwideLicensing to Turnkey IGCC Plants

Electricity (IGCC) Polygeneration

Coal to Chemicals -Coal to Liquids

4

Recent Successes: North America

North AmericaNorth

America

• Executed two detailed IGCC site feasibility studies

• Initiated FEED with major US utility

• Beginning FEED discussions with major US utility

• Technology license signed & engineering effort started for non-utility, coal-based IGCC plant

• Submitted detailed polygeneration (power, H2, steam) plant technical & commercial proposal

5

Recent Successes: Europe & Middle East

Europe & Middle EastEurope &

Middle East

• Refinery polygeneration studies

• IGCC studies & proposals

• Process engineering for existing licensee capacity expansion

6

Recent Successes: China

Orders

• Wison (Nanjing) Chemical Co., Ltd.: coal to methanol + carbon monoxide, TBC 1H 2007

• Major coal company: coal-to-methanol, TBC 1H 2007

• Shanghai Coking & Chemical Co., Ltd: coal to methanol + carbon monoxide, TBC 1H 2008

• Sinopec Qilu Company: coal/petcoke belnd to synthesis gas, TBC 2H 2008

Startups

• Sinopec Jinling Petrochemical Company: coal/petcoke blend to syngas for ammonia & hydrogen

• Shaanxi Shenmu Chemical Company, Ltd.: coal tosyngas for methanol

China

7

World-Class Operating Experience

Gasification Experience Solid Fuels Only

60

12

# Gasification Plants # Gasification Plants

1,132

760

1,120

Syngas Power Syngas & Power

>3 GW GE IGCC Experience

(MWs)

8

GE’s Corporate Commitment to Gasification

•GE’s 2004 Annual Report

• EcomaginationSM

•Significant media presence

• Jeff Immelt global city tours

•National TV commercial

9

US Energy Policy Act of 2005

Significant incentives for gasification

• IGCC 20% ITC, up to $800 MM in credits

• 80% Federal loan guarantees, advanced technology projects

• “Clean Coal Power Initiative”, $1.8B FY 2006-2014

•“Clean Power Projects”, many specific applications identified

Energy Policy Act Will Accelerate the Widespread Application of Gasification Technologies…Especially IGCC

10

Multiple IGCC OfferingsIGCC Reference Plant – GE and Bechtel’s IGCC Alliance

• Structured product – nominal 630 MW

• Lower CAPEX/shorter cycle time

• Single point solution – full wrap & performance guarantees

IGCC Non-Reference Plants

• Custom IGCC power plants

• Co-production – polygen applications (power, steam, H2, methanol, FT liquids)

• Performance guarantees

• Multiple EPCs

IGCC Power Block Supply

• All gasification technologies

NGCC to IGCC Fuel Conversion Projects

• Under-utilized assets

• IGCC performance guarantees possible w/GE power blocks

11

IGCC Commercial Status

2005

GE acquires CVX gasification technology

June2004

• CAPEX too high (20 - 25%)

• COE too high (+10%)

• Poor Initial RAM

•No system guarantees or warrantees – only license

• Drive technology synergies

• Provide single-point offering with strong contractual guarantees

• Step increase investment in product development – CAPEX, COE, RAM

120MW

Oct2004

AEP & Cinergy announcements

GE & Bechtel form IGCC alliance

Barriers to Commercialization

GE’s IGCC Solution

12

IGCC Reference Plant Status• Plant configuration – 630MW

• Configuration optimized for COE, RAM, performance & capex

• Capex premium being reduced by 50% for launch projects

• COE parity for launch projects

• Preliminary 2D/3D plot plan

• Space included for carbon capture

• Preliminary PFDs

• Major equipment lists

• Design to be complete 4Q 2006

13

Cost of Electricity: GE & Bechtel Reference Plant

SCPC

SCPC

GE & Bechtel IGCC Ref

Plant

Base NOx/SOx Hg Total IGCC4

5

6

SCPC

SCPC

Cost

of Ele

ctricity

, ¢/k

wh

CO2

CO2

PRB

5.665.64

7

8

8.29

6.90

5.21

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Global Gasification Resources

Global Research Center Headquarters

Niskayuna, NY

John F. Welch Technology Centre

Bangalore, India

China Technology CenterShanghai, China

GE Energy’s Gasification Business Headquarters

Houston, TX

GE Energy’s Greenville Manufacturing Site

Greenville, SC

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Commitment to Success

‘05 ‘06

$ Y

Avg/yr ‘01–‘04

‘07

$15Y

$10Y est.

$15Y

15X Product Development Budget

Jun04

Sep05

Dec05

Staffing For Growth

5X

• Syngas Cooler Advanced Design

• Advanced Feed Injectors

• Low Rank Coal Design

• High Efficiency Sulfur Removal

• Advanced Quench Ring

• Advanced Refractory

Gasification Programs

~50

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Site – Edwardsport, IN

Cinergy IGCC Project

• 2Q05 completed IGCC feasibility study (GE & Bechtel reference plant)

• 9/22 Cinergy announced it would begin contract negotiations with GE & Bechtel for FEED

Site – Meigs County, Ohio

AEP IGCC Project

• 2Q05 completed IGCC feasibility study (GE & Bechtel reference plant)

• 9/29 announced FEED study with AEP

• 3Q06 FEED will be complete

• 2010 expected commercial start up

IGCC Launch Plant Status

17

Major Global Growth Potential for Gasification

GE’s annual sales potential from gasification technology

• $200MM in the next few years

• $1B by the end of the decade

September 29, 2005

October 4, 2004

GE Energy

GE’s Gasification Developments

Edward LoweGeneral Manager, Gasification

Gasification TechnologiesCouncil

October 10, 2005