GE Energy gets $200M pact with Emirates Aluminium

GE Energy on April 6 announced a multi-year contractual service agreement (CSA) with Emirates Aluminium (EMAL) as it nears completion of what will become the world’s largest single-site aluminum smelter complex. The CSA will support EMAL’s recent investment in GE gas turbines and the long-term productivity and efficiency of the turbines.

Under the CSA, GE Energy will supply a wide range of services for the gas turbines, which are equipped with advanced emission control technologies to help EMAL reduce its carbon footprint and meet the regulatory requirements set by the Abu Dhabi Environmental Agency.

Duncan Hedditch, the CEO of Emirates Aluminium, said, “Our partnership with GE underscores how two global players can work in partnership to help create a world-class smelter. This service agreement underscores our commitment to sustainability and the seamless production of reliable, high-quality aluminum using the best available, environmentally-sound technology.”

Valued at more than $200 million, the CSA is designed to support the power requirements of this project, located close to the Arabian Gulf near Al Taweelah, Abu Dhabi and considered to be the UAE’s largest industrial project outside of the oil and gas sector. Phase one of the project will have an installed capacity of more than 2,000 megawatts of electricity to be used in the production of 700,000 tons of aluminum per year, while phase two will increase capacity to 1.4 million tons of aluminum per year.

GE Energy announced last July that it is supplying Frame 9FA gas turbines, C7 steam turbines, heat recovery steam generators and condensers for the project. Equipment shipping began at the end of 2008 in keeping with the project timeline of starting operations in April 2010.

The project will mark one of the first installations of GE’s Frame 9FA technology for an aluminum project. The units will be equipped with GE’s advanced Dry Low NOx (DLN) emissions technology, which will help meet EMAL’s goal of reduced environmental impact from the smelter complex.

“The CSA will provide GE technical experience and support for the EMAL power plant, allowing the customer to focus on its core objective of producing aluminum,” said John Krenicki, GE vice chairman, president and CEO of GE Energy Infrastructure. “The reliable supply of power is key to the overall success of this milestone project, which will set new technology standards for the aluminum industry in the Middle East and help position the UAE as a leading player in this competitive global industry.”

The EMAL project has helped to create new jobs and brings significant economic benefits to the region, while paving the way for expansion and diversification of the UAE’s industrial sector.

“The Middle East is one of the most important growth areas for GE Energy in the world today,” Krenicki said. “Since the end of 2006, we have announced more than $8 billion in equipment and service agreements across the Middle East with over 1,000 gas turbines installed. We continue to build on our capabilities and fulfillment to support the growth of the region.”

The CSA for the power plant at the EMAL smelter covers the supply of parts, repairs and field services for planned and unplanned outages for the gas turbine-generators and accessory equipment, along with performance guarantees. GE’s long-term service agreements are structured to provide customers with predictable maintenance costs, while ensuring a steady revenue flow from power plant operations. To date, GE has long-term service agreements including CSAs in place at more than 600 sites worldwide.