Ge is the most ambitious to join hands with Huadia

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Ge ambition: join hands with Huadian to enter distributed energy

Ge is putting advanced technologies such as aircraft engines into new application fields in China. On June 10, 2015, Duan Xiaoying, senior vice president of Ge and President and CEO of Ge Greater China, told China Business Daily that by joining hands with Huadian Group, GE has now made use of Huadian Tongyong light gas turbine equipment Co., Ltd., a joint venture carrier in Shanghai, China, Taking advantage of the opportunity of China's vigorous development of distributed energy, the company plans to occupy the top position in the development of distributed gas-fired power stations in China

on the same day, Cheng niangao, director and general manager of Huadian Group, who rarely appeared in public with senior executives of foreign enterprises, also made a special trip from Beijing to Shanghai. Cheng niangao frankly said that as a leader in the development of domestic distributed energy, Huadian is confident to gain a greater share of the domestic distributed energy market by holding hands with GE

ge began to exchange technology for market

as a big Mac in multinational companies, Ge rarely publicly expressed its alliance with Chinese central enterprises. In the decades since it entered the Chinese market, this fortune 500 giant, which has made great achievements in many fields such as clean energy, medical treatment, aircraft transportation and industrial interconnection, is known for its technological monopoly

but this time, Ge obviously wants to exchange technology for market. Duan Xiaoying said that the localization rate of the aforementioned aviation modified gas engine based on aircraft engine technology has reached 36% in China, and in the process of cooperation with Huadian, GE and Huadian both intend to improve the localization rate of this key equipment

Duan Xiaoying said that in recent years, GE has been committed to strengthening the localization process, and even the new plan includes the localization of the whole industrial chain in China, and strengthening the in-depth cooperation with Chinese partners is also regarded as the main starting point for GE to accelerate the localization of China. Therefore, the cooperation projects between GE and Huadian and the distributed energy project fully reflect the strategic focus of Ge in China

in terms of the development experience of distributed energy, Ge is the leader of distributed energy in the world. Duanxiaoying said that GE has installed more than 11500 units worldwide and has achieved mature commercial applications. Looking at the world, GE's distributed energy is not only in the United States, but also in Europe, Germany, Mexico and other markets, which also represents that distributed energy itself is widely used and is not limited by geographical restrictions

in reality, China's distributed energy market has just started. In Duan Xiaoying's view, China's development of distributed energy even faces many challenges. For example, in terms of policies, although the central government has issued a series of policies conducive to distributed energy, it still needs a process to implement these policies from the overall framework to the specific implementation details

it is precisely these details that are the most critical to the success of every distributed energy project. Duan Xiaoying analyzed from the perspective of equipment suppliers that how to implement advanced technology in China requires not only progressiveness but also economic benefits. She believes that the price of natural gas in China is still higher than that of coal, but if we look at the whole power generation life cycle, pay attention to environmental pollution in the whole cycle, and consider the comprehensive cost, the advantages of natural gas power generation will be reflected. Therefore, for this market in its infancy, Ge hopes to help China quickly start distributed energy through product localization

Steve Boz, senior vice president of Ge and President of GE power and water treatment group, made a more direct interpretation. He believes that the world power market is undergoing profound changes, and China is at the center of this change. It is expected that China's power consumption will double in the future, and 35% of the world's high-speed rail projects will come from China

borz said that it must be admitted that China is currently in the leading position in the world in terms of new nuclear power and coal-fired power generation, while China is still in its infancy in terms of natural gas cogeneration and distributed energy of different gas. At the moment, GE has nearly 300 gas turbines and internal combustion engines used in natural gas power plants, oil fields, coalbed methane, biogas and other applications in China, which play an important role in reducing carbon and nitrogen emissions and greenhouse gases

The above remarks of Duan Xiaoying and Bozi were released at the theme forum on opening the future of natural gas distributed energy held on the same day. According to the national plan, the installed capacity of natural gas distributed energy in China is expected to reach 50million kW by 2020, while by the end of 2014, the installed capacity of natural gas distributed energy projects that have been built and are under construction in China is only 3.8 million KW, which means that GE may face a ten fold increase in sales opportunities of natural gas distributed energy units in the next five years

I think Ge is holding a high-profile hand with Huadian at the moment, which means that it is more or less trading technology for the market. On the same day, a market person who attended the meeting but declined to be named said that the new power reform plan introduced in March this year has completely cleared the roadblocks of distributed energy, and the expected target of 50million kW means that there are nearly trillion yuan of business opportunities in this market

Huadian seeks to learn technology by hitchhiking

compared with Ge, although it has become a leader in the field of distributed energy in China, Huadian still lacks technology

Deng Jianling, deputy general manager of Huadian Group, made no secret of this. Huadian general light gas turbine equipment Co., Ltd., a joint venture between Huadian and Ge, is a very good embodiment. The management and main production technology backbones of this plant are deployed from GE. Through such cooperation, we hope to realize the localization of aviation modified gas engines as soon as possible. Deng Jianling revealed that the localization rate of aviation modified gas engines is currently only 36%, and the next step is to continuously improve the localization rate. Deng Jianling believes that this is one of the original intentions of the cooperation between Huadian and Ge

as one of the five major power generation groups in China, Huadian Group currently accounts for more than 30% of clean energy, and the installed capacity of hydropower is 2396 kW, maintaining a leading position in the same industry. Among them, the installed capacity of wind power is 680 kW, and the installed capacity of solar energy is 1.36 million KW, while Huadian has accounted for 1/5 of the total installed capacity of natural gas power generation in China, and is in an obvious leading position in the same industry. Cheng niangao revealed that since October 24, 2014, the aviation modified gas unit jointly manufactured by Huadian and Ge was offline, marking a historic step in distributed energy. Now, in order to expand the industrial chain and develop distributed energy, Huadian is actively participating in the industrial layout, and the exploration work of its five shale gas blocks is progressing steadily

Cheng niangao pointed out that the problem of new development facing resource and environmental constraints is becoming more and more obvious. If we accelerate green development and realize the optimization and upgrading of the energy industrial structure, it has become a major proposition for China's power industry and even the whole society. Therefore, natural gas distributed energy, as a typical achievement of energy utilization, has the advantages of high efficiency, clean and environmental protection, and has become a key link in energy development, which is of great significance for energy adjustment and solving the current haze pollution

Cheng niangao said that on the one hand, Huadian Group plans to promote the development of shale gas industry, actively entrusts to promote shale gas development, strives to develop upstream and downstream markets, and achieves coordinated promotion of the whole industrial chain. On the other hand, Huadian will sublimate its strategic cooperation with Ge, accelerate the introduction of key technologies for the modification and maintenance of aviation modified gas turbines, effectively promote the localization process of distributed energy cooperation equipment, and further expand the leading edge of Huadian Group in gas development

Duan Xiaoying responded positively to this expectation. Duan Xiaoying said that GE has not only been following the Chinese government, but also has a very deep cooperation with Huadian, a central enterprise. Its focus is not only on China, but also hopes to serve the world with Huadian

as for the doubts about where there are so many natural gas resources for China to develop natural gas distributed energy, Deng Jianling, deputy general manager of Huadian, believes that this is not a problem

China's shale gas resources can be comparable with those of the United States, with up to 35 trillion reserves and 25 trillion recoverable reserves. In addition, we have rich resources such as coalbed methane, tight gas, combustible ice and deep-sea oil and gas. The problem is that China's existing technology is not in place. Before the mining level is not adjusted, each pad iron should be stressed evenly. Where is the technology? Obviously, it is in the hands of large enterprises in the United States. Deng Jianling said that now China is producing 4 billion tons of coal every year and then stops processing 10 trillion yuan of GDP. With this development, before long, our annual consumption of coal may reach 8 billion tons. The problem is that the total global coal production in 2014 was only 7.7 billion tons

this also shows that with the support of Ge, in order to ensure the promotion of natural gas distributed energy units, Huadian Group may take unconventional oil and gas resources such as shale gas as one of its new directions for transformation and local expansion in the future

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