GE And Toshiba Sign Memorandum Of Understanding To Form Global Strategic Alliance To Establish A Joint Venture In Combined-Cycle Power Projects And Technology
GE (NYSE: GE) and Toshiba Corporation (TOKYO: 6502) signed today a
memorandum of understanding (MOU) to form a global strategic alliance,
under which the two companies would jointly develop select
GE (NYSE: GE) and Toshiba Corporation (TOKYO: 6502) signed today a memorandum of understanding (MOU) to form a global strategic alliance, under which the two companies would jointly develop select combined-cycle power generation projects around the world. In addition, under the MOU, the two companies will explore the formation of a strategic joint venture for the development of next-generation combined-cycle power projects with higher levels of thermal efficiency. Toshiba and GE have cooperated in gas turbine combined-cycle power generation systems since 1982 and have existing agreements to pursue 50-Hz and 60-Hz projects together in Japan and in key regions in Asia. Today’s announcement builds on that long, successful history of collaboration by targeting projects around the world that the companies can jointly develop and by exploring joint development of future combined-cycle technology. GE and Toshiba won a contract in 2012 to supply the new FlexEfficiency* technology to Chubu Electric Power’s Nishi Nagoya Thermal Power Plant in Japan. This system is being jointly configured to achieve the world’s highest thermal efficiency of 62 percent (at site conditions). Based on today’s MOU, GE and Toshiba will look to extend winning collaborations such as this to customers around the world. Combined-cycle power generation systems combine gas turbines and steam turbines to achieve very high fuel efficiency and reduced CO 2 emissions as compared to conventional thermal power plants. Exhaust heat from the gas turbine is recovered and used to produce steam that drives the steam turbine and generates more electricity. GE’s FlexEfficiency technology portfolio harnesses natural gas and enables greater use of renewable energy. The FlexEfficiency portfolio combines record-breaking efficiency, which will reduce emissions and save money (compared to prior GE configurations), along with unprecedented flexibility, which will enable utilities to deliver power quickly when it is needed and to ramp down when it is not, balancing the grid cost-effectively.