GE Presentation at NARUC Winter Meeting 2013

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1. GE Gas Engines. NARUC Winter Meeting - 2013. Jonathan Hesener. Regional Sales Director. GE Gas Engines. North America. Combined Heat and Power ...
Combined Heat and Power (CHP) & Waste Heat to Power (WHP) GE Gas Engines

Jonathan Hesener Regional Sales Director GE Gas Engines North America

1 GE Gas Engines NARUC Winter Meeting - 2013

What is our path forward?

Today

Tomorrow

2 GE Gas Engines NARUC Winter Meeting - 2013

What is our path forward? Fast Green Today

• Moderate to strong global economic growth • Post-Kyoto international climate agreement reached • Clean tech industry rapidly expands • Renewables flourish 3 GE Gas Engines NARUC Winter Meeting - 2013

What is our path forward? Today

Slow Brown • Weak global economic growth • Weak commodity and fuel prices • Economic concerns take priority over global environment • Protectionism increases • Unconventional gas supplies disappoint 4 GE Gas Engines NARUC Winter Meeting - 2013

What is our path forward? Fast Blue Today

• Global economic growth regains strength • Commodity and fuel prices stabilize • Moderate clean energy technology innovation • Natural gas flourishes

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What Fast Blue may mean in the US Rethinking the role of gas

“Bridge Fuel” …Old Way

“Destination Fuel” …New Way

• Role of gas temporary ‘bridge’ to low carbon economy

• Role of gas key long term solution to achieving a low carbon economy

• Gas supply constrained

• Gas supplies abundant

• Many countries facing future of high import dependency

• Countries facing a more secure energy future

• Development was driven mainly by project economics

• CHP and Waste Heat to Power (WHP) development driven by energy infrastructure dynamics

© General Electric

6 GE Gas Engines NARUC Winter Meeting - 2013

We are prepared for a Fast Blue world GE Aero 16MW-100MW Jenbacher gas engines 335kW to 8.7MW

Waukesha gas engines 119kW to 3.6MW

Clean CycleTM 125kW

© General Electric

7 GE Energy Gas Engines USCHPA Annual Meeting – October 2011

Fuel Flexibility and Tailor-Made Solutions Coal mine gas

Waste Heat to Power

Landfill gas

Sewage gas

Oilfield applications (AP gas)

Island mode

Special gases

Cogeneration (Natural gas) Greenhouse applications

Biogas 8 GE Gas Engines NARUC Winter Meeting - 2013

GE’s definition of “Cogeneration”

CHP and WHP are part of the same family 9 GE Gas Engines NARUC Winter Meeting - 2013

CHP and WHP in the US Existing CHP & WHP Segment • 85 GW installed at 3,364 sites • 10% of total U.S. generating capacity (12% of generation) • 1.9 QBTU’s of fuel use saved per year • 240 Mtons of CO2 emissions eliminated annually US CHP/WHP Segment Potential by Industry and Size Class

Technical Potential for CHP & WHP

80

In Megawatts, MW

64

• 132 GW (64 GW industrial, 68 GW commercial)

60

• 47% (62 GW) is found in sites between 1 – 20 MW in output size

40

• 1 – 20 MW is GE Jenbacher focus

20

68 >20 MW

5 - 20 MW

>20 MW 1 - 5 MW 5 - 20 MW

1 - 5 MW

50 - 1000 kW

50 - 1000 kW

0

Industrial ICF International 1 GW (Gigawatt) = 1000 MW (Megawatt)

Commercial

10 GE Gas Engines NARUC Winter Meeting - 2013

Technical Opportunities for CHP & WHP Top Sectors, 1 – 20 MW Textiles 4% Primary Metals 4% Petroleum Refining 4%

Chemicals 39%

Industrial 36 GW

Data Centers 2% Multifamily Buildings 4% Other 5%

Commercial 30 GW

Hotels 6%

Other 21%

Commercial Buildings 44%

Prisons 7% Paper 15%

Food 13%

Govt. Buildings 8%

Top States, 1 – 20 MW Michigan 3%

Other 48%

New York 4% Wisconsin 4% Georgia 4% Illinois 5% North Carolina 5% Pennsylvania 5%

College/Universities 11%

Hospitals 13%

Other 48%

Ohio 3% Illinois 4%

Industrial 36 GW

Pennsylvania 6% Texas 8%

Ohio 6%

Commercial 30 GW

New Jersey 4%

California 8%

Florida 6% Texas 6% ICF International 1 GW (Gigawatt) = 1000 MW (Megawatt)

California 11%

New York 12%

11 GE Gas Engines NARUC Winter Meeting - 2013

Project Economics and Spark Spread

Venty Velocity Suite – 02.27.12

Darker colors represent higher electric rates (¢/kWh) 12 GE Gas Engines NARUC Winter Meeting - 2013

CHP project economics…payback Payback Analysis, Varying the Price of Natural Gas & Electricity Engines Sizes for Electrical Load

Electricity Price, $/kWh

Natural Gas Price, $/MMBtu

$0.06 $0.07 $0.08 $0.09 $0.10 $0.11 $0.12 $0.13 $0.14 $0.15

$5 9.1 5.2 3.6 2.8 2.3 1.9 1.6 1.4 1.3 1.2

$6 16.2 6.9 4.4 3.2 2.5 2.1 1.8 1.6 1.4 1.2

$7 72.5 10.3 5.5 3.8 2.9 2.3 1.9 1.7 1.5 1.3

$8 -29.2 20.4 7.6 4.6 3.3 2.6 2.1 1.8 1.6 1.4

$9 -12.2 945.4 11.8 6.0 4.0 3.0 2.4 2.0 1.7 1.5

$10 -7.7 -21.3 27.5 8.4 4.9 3.5 2.7 2.2 1.9 1.6

$11 -5.6 -10.5 -85.7 14.0 6.5 4.2 3.1 2.5 2.0 1.7

$12 -4.4 -7.0 -16.8 42.3 9.3 5.3 3.7 2.8 2.3 1.9

$13 -3.6 -5.2 -9.3 -41.0 17.0 7.0 4.4 3.2 2.5 2.1

$14 -3.1 -4.2 -6.4 -13.8 91.7 10.6 5.6 3.8 2.9 2.3

Greater than 5-year payback Less than 5-year payback

13 GE Gas Engines NARUC Winter Meeting - 2013

www.dresserwaukesha.com www.gejenbacher.com www.geheatrecovery.com

Jonathan Hesener Regional Sales Director GE Gas Engines, North America 14 +1 518GE 227 Gas5806 Engines [email protected] NARUC Winter Meeting - 2013