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GE Energy, Bechtel Announce Alliance for Cleaner Coal Projects

San Francisco, CA - October 4, 2004 GE Energy and Bechtel Corporation today announced their intent to establish an alliance to develop a standard commercial offering for optimized integrated combined-cycle gasification (IGCC) projects in North America.   IGCC systems convert coal and other hydrocarbons into synthetic gas, which after cleanup is used as the primary fuel for a gas turbine in a combined-cycle system. IGCC systems offer significant environmental benefits compared to traditional pulverized coal power plants.

The alliance will integrate the development, marketing, commercialization and implementation of GE's IGCC process with Bechtel's engineering, procurement and construction (EPC) expertise.   Bechtel is one of the world's leading EPC contractors, with significant experience in the design and construction of gasification plants.

GE Energy is a leading supplier of gas turbines for IGCC applications, having provided gas turbines for more than 60 percent of the world's operating IGCC plants. The company also recently purchased the ChevronTexaco gasification technology business, whose technology has been applied to many of the world's IGCC power plants.  

GE Energy has worked with Bechtel on a number of IGCC projects, including the 100-megawatt Cool Water plant in California, a demonstration project completed in 1984, and the Tampa Electric Company's 250-megawatt Polk Power Station in Florida, which began operation in 1996.  

Edward Lowe, general manager of gasification and product line management for GE Energy, said: "We look forward to our alliance with Bechtel, which will enable both companies to integrate their complementary strengths and resources. The IGCC alliance will benefit our clients through commercialization and execution of IGCC projects, based on a standard GE IGCC product." Lowe added, "The alliance will initially focus on establishing successful IGCC ventures for the power generation market in the U.S., establish a leadership position in the production of cleaner power from coal and petroleum coke, and bring value to a wide range of customers."  

Scott Ogilvie, President of Bechtel Power Corporation, said: "We are very excited to be aligning Bechtel's and GE's expertise and resources to further advance gasification technology, and to provide competitive gasification solutions to the industry. This alliance can significantly improve prospects for developing cleaner coal projects and will enhance the competitiveness of IGCC in the areas of price, performance, schedule, availability and emissions."  

About GE Energy  

GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2003 revenues of nearly $18.5 billion.   Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, oil and gas, transmission and distribution, distributed power and energy rental industries.