Chinese Coal Group Turns to GE Energy to Support Initiative to Reduce Greenhouse Gases

GE’s Coal Mine Gas Engines to be Installed at New Power Plant in First Quarter 2009

GE Energy today announced that two of its ecomaginationTM-certified Jenbacher coal mine methane (CMM) gas engines will contribute to China’s efforts to reduce the amount of methane-rich greenhouse gases that escape from the nation’s coal mines. The technology has been selected by the Sichuan Coal Group for its Furong project that will utilize the mine gas to generate onsite power for the active mine.

The new alternative energy power plant is located in XunChang Town, Gongxian County, 40 kilometers from YiBin City, in the Sichuan Province.

Sichuan Coal Group Furong CMG Utilization Company Power Plant will feature two of GE Energy’s Gas engines, each providing an electrical output of 3.048 megawatts. The plant also will utilize the gas engines’ exhaust gas to produce steam, which will be used in a steam turbine to generate additional power for the site.

GE’s Jenbacher units are scheduled to be in operation by the end of March 2009.

“We have provided Jenbacher gas engines in China for a long period of time for various applications. Our technology was recognized by Chinese customers and with the recent resources and capability we invested in China, we hope to strengthen customer service and broaden our reach into different regions in the country,” said Jack Wen, President and CEO of GE Energy China.

China has been adopting stricter environmental policies that are driving the development of more CMM power projects. In April 2008, to curtail the nation’s greenhouse gas emissions, China’s Ministry of Environmental Protection prohibited coal mines from releasing gases containing more than 30 percent methane, which is the second largest global contributor to greenhouse gas emissions after CO2 and has 21 times the greenhouse warming potential of CO2.

In addition to power generation, Sichuan Coal Group Furong CMG Utilization Company Power Plant is eligible for carbon credit trading under the United Nations-backed Clean Development Mechanism program, providing Sichuan Coal Group with additional financial support for the project.