GE Energy and Mitsubishi to Develop New Steam Turbines for Combined-Cycle Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--GE Energy (Atlanta, Georgia), a division of General Electric Company (NYSE:GE) (Fairfield, Connecticut), has signed a memorandum of understanding with Mitsubishi Heavy Industries Limited (TYO:7011) (Tokyo, Japan) to develop steam turbines to be used in combined-cycle gas turbine (CCGT) power plants. Under the agreement, the firms will leverage each other's technology expertise to develop a new steam turbine with increased efficiency, performance and reliability. The product is likely to come into commercial use by 2011-12.

GE and Mitsubishi will firm up the basic design and specification of the turbines and then proceed toward a possible agreement for co-development. Each firm will manufacture the new generation steam turbines, which will be used in their respective CCGT power projects.

The companies plan to extend the collaboration to co-develop a steam turbine for nuclear power projects and leverage their alliances with global leaders in the nuclear power sector to promote their products. Mitsubishi has an alliance with Areva SA (EPA:CEI) (Paris) to develop nuclear power plants. GE has integrated its operations in the nuclear power sector with those of Hitachi Limited (TYO:6501) (Tokyo, Japan). GE and Mitsubishi will also explore the feasibility of setting up a joint venture to promote mutual cooperation in co-development activities and to engineer advanced manufacturing processes for the co-developed products.

The firms are looking to tap into the increasing demand for CCGT power plants, which are known for higher efficiency and cleaner power generation, compared with conventional power plants. CCGT power plants operate on gas turbines as well as steam turbines that utilize exhaust gas heat captured from gas turbines. This results in efficient generation of clean energy with reduced emissions of greenhouse gases. Steam turbines form the backbone of the global power generation industry and are used in the generation of more than 80% of the world's electricity.

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