GE Energy, a subsidiary of General Electric Company, recently signed three separate agreements with power and utility companies in Algeria, Turkey and South Africa under which GE would help the companies improve their output and efficiency. The first agreement was signed with South African gas and oil company, Sasol (Johannesburg), under which GE will provide round-the-clock monitoring and diagnostics of Sasol's new power plant in Secunda.
In another deal, GE Energy signed an agreement with leading Turkish utility company, Enka Power (Istanbul, Turkey), under which GE will supply Enka with up to 10 of GE's most modern fuel-efficient 9FA gas turbines to two of Enka's most important power plants in Adapazari and Izmir. The upgrades will enable Enka to meet the requirements of Turkey's new energy initiative to enhance efficiency and productivity. Turkey's domestic energy demand increased by almost 9 percent in 2007, and increasing the efficiency of the nation's electricity production is a critical goal of the Turkish government. GE also signed service agreements with Algeria's state-owned power company, Sonelgaz (Alger, Algeria), to help increase the efficiency, reliability, and output of 51 turbines installed in 13 Sonelgaz power plants spread across Algeria.
Sasol's new 280-megawatt power plant in Secunda will be the first plant in South Africa to install GE's Energy Frame 9E gas turbines. The plant will be located at the site of Sasol's synthetic fuels facility in Secunda and will provide the power required for the production of synfuels. The excess electricity will be sold to South Africa's state-owned utility company Eskom (Sandton). The plant will not only increase Sasol's on-site power generation capacity, but will also decrease the load on Eskom, which has struggled to maintain peak supplies to industry. Sasol's 15-year contractual service agreement with GE covers all maintenance activities for the two turbines. The agreement will improve Sasol's long-term reliability and plant performance, thus helping the company fulfill the conditions of its power purchase agreement with Eskom and being assured of a steady revenue stream. The improved plant operations will also contribute to an improvement in emissions performance. The gas turbines will run on natural gas initially, but they will later use low-BTU gas or flare gas for further emission reduction. This CSA is a continuation of Sasol's business relationship with GE since Secunda already runs 22 of GE's steam turbines.
With the signing of the agreement, Enka Power is set to become the first global customer to invest in GE's latest fuel-saving technology for gas turbines. GE has developed a new cooling optimization package for the 9FA gas turbines. The new development enhances the efficiency of the gas turbines by more than 1 percent and this will help Enka save significantly in terms of fuel costs per kilowatt of electricity generated. The upgrades will increase the total output of five combined-cycle blocks by around 35 MW, which is enough power for an additional 150,000 households in Turkey. The carbon released per MW produced will also be reduced by 1 percent. The power plants at Adapazari/Gebze and Izmir were respectively supplied with six and four Frame 9FA gas turbines in 2000. The combined capacity of the plants is 3,800 MW, which was progressively added to the national grid in 2002 and 2003. Six of the turbines were upgraded in 2008 and the remaining four will be upgraded in 2009 during a scheduled outage of the units. While GE will supply the components, Enka's subsidiary, CIMTAS (Istanbul, Turkey), will take care of the piping fabrication and installation. The new upgraded Mark Ve processors in the control system will enable Enka to reduce fuel consumption and harmful emissions as well.
GE's service agreements with Sonelgaz are worth more than $1 billion and they involve a number of programs. GE will supply three F-class gas turbines to the new Koudiet Eddraouch power plant in the El-Tarf province, and an 18-year contractual service agreement for the plant is one of the provisions of the agreements, which also consist of a six-year maintenance program covering 48 gas turbines located at 12 other Sonelgaz power plants across Algeria. The agreements also include the supply of "value packs" with upgraded Mark VI control systems that can improve the output of gas turbines. The GE value pack is an upgrade service that enhances the efficiency, configuration, reliability, performance, and safety of the equipment. Algeria's economy is growing rapidly, and the country's power needs are expected to reach 14,000 MW by 2010, while its current generating capacity is about 7,900 MW. The Koudiet Eddraouch power plant is expected to boost Algeria's generation capacity and thus help Sonelgaz meet the growing power needs of the nation.
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