Green is Green

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• Green is Green

Mark Little Senior Vice President GE Global
Research November 2006
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GE More than a century of innovation

• 114-Year-Old, High-Tech, Growth Company
• 150 Billion in Annual Revenues
• Only Company Listed in Dow Jones Index Today That
  Was in Original List in 1896
• 315,000 Employees Worldwide

1892
2006
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Six businesses, each with a number of business
units aligned for growth.
Infrastructure
Industrial
Commercial Finance
Healthcare
NBC Universal
Consumer Finance
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GE Global Research market-focused RD

• First US industrial lab
• Began 1900 in Schenectady, NY
• Founding principle improve businesses through
  technology
• One of the worlds most diverse industrial labs

c. 1900
2006
Cornerstone of GEs commitment to technology
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Global brains
Global Research Center Niskayuna, NY

• 2,600 research employees
• 26,000 GE technologists worldwide
• GE technology spend 5.2B

John Welch Technology Center Bangalore, India
China Technology Center Shanghai, China
Global Research Europe Munich, Germany
Qatar Innovation Center
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The Energy Challenge
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Global energy trends and challenges
Population more electricity demand everywhere
Security heightened concerns
Environment driving todays and tomorrows
decisions
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Power gen landscape next 10 years
Total capacity additions GW (2006 2015)
E. Europe FSU
W. Europe
China
N. America
Middle East Africa
India
Latin America
Rest of Asia
10 Year Avg AnnualCap Adds (GW)
Nuclear Renewables Hydro Coal Gas/Oil TOTAL
8 21 24 35 59 146
Source GE Energy Forecast
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Power Generation Cost of Electricity
/kWh
CO2 g/kWh 650 450 1000 900 0 0
Near zero with sequestration
Market Adopting Portfolio Approach
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This environment drives technology development

• High fuel prices require higher efficiency
• Energy security requires more diverse
  solutions
• More stringent environmental standards require
  lower emissions, increased use of renewables and
  nuclear

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Energy technology objectives
Efficient
Diverse
Nuclear Coal Gas Wind Oil Geothermal Biomass Hydr
o Solar
Emissions
Reliability
Efficiency

Driving cost of electricity down
Portfolio of affordable, reliable
environmentally responsible technologies
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Doubling our research investment Introducing more
ecomagination products Reducing greenhouse gas
emissions Make customers true partners Keeping
the public informed
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Green technology winning in the market
Wind
Next-gen blades
3B
Innovative controls
Advanced drive trains
200 MM
'02
06
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Green technology winning in the market
Evolution
Common Control Architecture
Advanced Cooling System

• Reduced fuel consumption ANDreduced emissions
• Reduces emissions by 40 compared to existing
  locomotives
• Increased fuel efficiency by 3 - Saves 9,000
  gallons of fuel per locomotive per year

GEVO 12 Engine
Assumes average of 300,000 gallons of fuel
consumption per year
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GEs best betson energytechnologies
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Cleaner coal
IGCC (Integrated Gasification Combined Cycle)

• Converts coal to synthesis gas cleaned prior to
  burning
• Produces useful by-products
• Driving down cost and emissions
• CAPEX approaching pulverized coal
• Criteria emissions approaching natural gas

Electricity Transmission Distribution
Gasifier
Steam Turbine
Sulfur Removal Future CO2 Capture
HRSG
Gas Turbine
Mercury Removal
Particulate Removal
RadiantSyngas Cooler
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Nuclear
Advanced new nuclear ESBWR

• Simplified design, increased output, smaller
  footprint will reduce CAPEX and OPEX, and
  shorten construction schedule
• Part of the US Department of Energy 2010 Program,
  design certification submitted to NRC, selected
  by NuStart, Entergy Dominion
• On plan for 2007 Combined Operation License
  applications

Improved safety security
Modular passive design
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Growing Demand for Renewables

• 3 of Electricity Production
• Significant Growth 25 CAGR (95 13)
• 40 Global Power Capital Spending

Aggressive Global Targets
Global Renewable Installed Capacity (GWs)

• US 20 Wind 20
• UK 20 Renewables 20
• Germany 20 Renewables 15
• EU 12 Renewables 10
• China 30 GW Wind 20
• Spain 20 GW Wind 11
• India 12 GW Wind 12

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• Wind 12GW
• gt50 of
• Growth

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Wind
Solar
Geothermal
Biopower
Small Hydro
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Source REN21 2006 update
World Requiring Renewable Energy Solutions
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Renewables Wind
Complete range of products
2.5 MW platform
1.5 MW platform
3.6 MW offshore

• Arklow demonstration project 7 x 3.6s
• Largest commercial operation

• Full power conversion
• Simplified servicing
• Larger farms with easier grid integration

• Among the most proven and utilized technology
• Over 4,700 units worldwide
• 97 availability

• Future 2.5/100 MW
• Capacity factor leadership
• High reliability
• Advanced controls

• Future 5 - 7 MW
• Leading cost of energy
• Utilize GE technology strengths

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Renewables Solar
Driving cost down
Today
Tomorrow
And Beyond
Integrated systems

• Optimize
• Reduced material
• Increase efficiency
• Mfg processes

• Breakthrough technology
• Nano
• Concentrators
• Other

COE 30 /kWh
COE 18 /kWh
COE 10 /kWh
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Longer-term Best Bets
Enabling technology to deal with environmental
challenges
CO2 Capture
Hydrogen
Liquid fuels
Waste to energy
GE Company Proprietary
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Future of Energy Technology

• Socio-economic trends demanding technology
  developments
• Government, academia, industry all have a role
• No silver bullet a portfolio approach to
  technologies

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Green is green energy technology that is

• Good for our customers
• Good for the environment
• Good for our shareholders

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