GE Energy, Bechtel announce alliance for cleaner coal projects

ATLANTA, GA and SAN FRANCISCO, CA, October 4, 2004 — GE Energy and Bechtel Corp. have 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-MW Cool Water plant in California, a demonstration project completed in 1984, and the Tampa Electric Company’s 250-MW Polk Power Station in Florida, which began operation in 1996.

Edward Lowe, general manager of gasification and product line management for GE Energy, said: “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 Corp., said: “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 ( 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.

About Bechtel

Bechtel is one of the world’s premier engineering, construction and project management companies, with 2003 workoff revenues of $16.3 billion. Since 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Bechtel is privately held and has been under the leadership of its founding family for four generations.

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