GE Gas Engine Technology to Power China's Largest Landfill Gas Project

GE's Jenbacher Gas Engines to Reduce Carbon Dioxide Emissions by More than 340,000 Tons per Year and Greenhouse Gas by Nearly 19 Million Cubic Meters Each Year ----Project Supports Chinese Government's 12th Five-Year Plan to Invest More than RMB260 Billion in the Waste Treatment Industry by 2015 ----GE Cements Leadership Position in China with Latest Alternative Power-to-Energy Project

SHANGHAI--GE (NYSE: GE) today announced that its ecomagination-qualified Jenbacher gas engines will power China's largest landfill gas (LFG) power generation project. The Laogang LFG project is owned by Laogang Renewable Energy Co., a joint venture formed by Veolia and Shanghai Environment Group, and supports the Chinese government's 12th Five-Year Plan, during which China plans to invest more than RMB$260 billion in the waste treatment industry including waste-to-energy initiatives by 20151.


"Traditionally, landfill methane as a potent greenhouse gas has been released directly into the air," said Chen Hongzhang, general manager, Laogang Renewable Energy Co. "By using GE's gas engines fueled by LFG, we expect to save emissions by over 340,000 tons of carbon dioxide equivalent per year, significantly improving the local environment in Shanghai."

Seven of GE's ecomagination-qualified Jenbacher J420 gas engines, which will provide about 10 megawatts of electricity, will power the new Laogang LFG facility located in Shanghai. Each J420 engine combusts 2.7 million cubic meters (m3) of methane each year, providing an overall yearly reduction of greenhouse gas of around 18.9 million m³ for the seven gas engines. The Renewable Energy Company will sell any excess electricity generated to the grid. This project is an example of how GE's portfolio of innovative distributed power solutions, ranging from 100 kilowatts (kW) to 100 megawatts (MW), gives businesses and communities around the world the ability to generate reliable and efficient power anywhere, whether on or off the grid.

GE's Jenbacher landfill gas engines use the gas—consisting of methane, carbon dioxide (CO2) and nitrogen—created during the decomposition of organic substances in a landfill. Methane has a global warming factor 21 times greater than carbon dioxide, the most widely recognized greenhouse gas affecting climate change. With a calorific value of approximately 5 kWh/Nm³, landfill gas constitutes a high-value fuel for gas engines that can be effectively used for energy generation. One of GE's Jenbacher J420 gas engines running on landfill gas can generate 1.4 MW electricity while saving the emissions of more than 49,000 metric tons of CO2-equivalent per year through methane destruction and displaced grid electricity production; this is equivalent to the annual CO2 emissions of more than 9,500 passenger cars on U.S. roads.

"This important project underscores our commitment to providing alternative energy solutions to help China meet its energy goals and cements our position as a leader in this segment," said Rafael Santana, president and CEO—Gas Engines for GE Energy. "Our Jenbacher gas engines combine high efficiency and reliability with fuel flexibility to meet our customers' needs with positive environmental impact. The seven Jenbacher J420 gas engines running on landfill gas are designed to generate almost 80 megawatt hours of electricity per year, which could power more than 46,000 Chinese households per year2."

The gas engines are scheduled to begin shipping in the second quarter of 2012 with commercial operation expected in December 2012.

This project is the latest in GE's landfill gas solutions using Jenbacher gas engines. On October 31, 2011, GE announced that it had supplied a fourth J420 Jenbacher gas engine to Asja Brasil's new 4.3-megawatt Belo Horizonte landfill-gas-to-energy (LFGTE) project in Brazil, helping to meet the country's goals to increase the production of renewable and alternative energy.

On October 11, 2011, GE announced that it joined government officials and utility representatives at the Golden Triangle Regional Landfill in northeastern Mississippi in the United States to mark the commercial start up of the state's first LFGTE project that will support the regional grid. Owned by the Golden Triangle Regional Solid Waste Management Authority (GTRSWMA), the LFGTE facility uses an ecomagination-qualified, GE J320 Jenbacher landfill gas engine to generate nearly 1 MW of renewable power sold through Tennessee Valley Authority's renewable power initiative—enough to support about 700 average U.S. homes.

GE's alternative gas-to-power portfolio includes its Jenbacher and Waukesha gas engines, which are specifically designed to provide the fuel flexibility needed to accommodate the use of alternative fuels such as landfill gas while offering high levels of electrical efficiency. GE's Jenbacher landfill gas engines are part of the ecomagination portfolio for successfully demonstrating that converting landfill gas to electricity demonstrates both improved value and environmental performance. Ecomagination is GE's commitment to invest in a future that creates innovative solutions to global environmental challenges.

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GE Energy works connecting people and ideas everywhere to create advanced technologies for powering a cleaner, more productive world. With more than 100,000 employees in over 100 countries, our diverse portfolio of product and service solutions and deep industry expertise help our customers solve their challenges locally. We serve the energy sector with technologies in such areas as natural gas, oil, coal and nuclear energy; wind, solar, biogas and water processing; energy management; and grid modernization. We also offer integrated solutions to serve energy- and water-intensive industries such as mining, metals, marine, petrochemical, food & beverage and unconventional fuels.

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