Southeast Asia and India

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1 GE Energy bacher gas engines Issue 3/2009 More Power Significant increase in type 6 engine efficiency Southeast Asia and India The need for more power Lifetime Services Plus The right service at the right time

2 editorial Content 02 editorial CEO story 03 Investing in the future technology & product news 05 Latest development from bach: J6F 07 J624 The future has already begun 09 Type 6 engines now available in ntainer Dear Customers and Readers! industry news 11 Pushing the envelope: Cogeneration in Europe 13 Smart Grid Empowering smarter energy choices 15 Multiple-engine approach applications and solutions 17 Promising electricity supplier for the future: Biowaste distributors and service providers 21 News from the Champions League 23 Ultimate ambition: Maximized customer satisfaction region special 25 Southeast Asia and India: The need for more power 33 Turning waste into energy service 35 Investing in tailored solutions: Lifetime Services Plus 37 In top form 39 So far, so near: Connecting customers remotely in Asia 40 Faster and smarter: Digitizing field service 41 New from old: Major overhaul of Strass wastewater treatment plant supply chain 43 The re mponent from Tyrol personality story 45 An interview with Michael Wagner, Marketing Leader 47 feedback and masthead home base 48 From the city to the mountain-top A great deal has changed since the last issue of Co, our magazine for bacher customers and all those interested in gas engine technology. The development of the world enomic situation has us all waiting with bated breath, and it is still not clear what the situation will be in the short term. Nevertheless, from the point of view of the gas engine industry, we are cautiously optimistic, since the business foundaments are strong and we can see that worldwide demand for flexible, decentralized energy solutions will ntinue to be high in the medium to long term. We should therefore like to use this latest issue of Co to tell you more about interesting technical developments and worldwide trends in the gas engine industry. A new version of the series 6 engines developed in bach and now available in series production offers increased efficiency and power output, and hence greater profitability for the plant. Besides, there is naturally news about the J624 the world s first 24-cylinder gas engine. Also in this issue, we examine the latest trends in the energy industry, and have also been fortunate enough to obtain some interesting guest ntributors on the subjects of mbined heat and power and smart grid, a particularly relevant ncept for intelligent, demand-oriented electricity networks. In this issue of Co, we also introduce one of our international distributors Clarke Energy, who has notched up impressive successes in fourteen years as bacher distributor. In the Regional Special, this time we analyze the interesting region of Southeast Asia, where the expansion of the electricity grid has beme a real driver of enomic growth. In the Service focus of the magazine we take a look at our new Lifetime Services Plus ncept with active life-cycle management for our customers. As always, we attach great importance to your feedback on our magazine, which is why we are asking you please to take part in our survey. This time there is also a very special prize to be won: a weekend for two in Innsbruck, Tyrol. At this juncture we should like to thank all those who took part in the survey in the last issue of Co. The winners of our Retro Radios were Jacques- Yves Bourgon of ArcelorMittal, France, and Elvinas Zabas of our distributors Filter in Lithuania. Finally, on behalf of the entire editorial team, I wish you an interesting read and look forward to your feedback on Co! Martina Streiter bacher Communications 02

3 CEO storyen JCEO story Global setup for worldwide success. From 2008 to 2009, the global bacher network of distributors and service providers grew significantly from 45 to now 60 operating mpanies worldwide. Recent additions to the network include additional distributors in such key untries as China and Russia. We strengthen our global distribution network in Investing in the future order to provide our customers with more localized solutions, much-needed local engineering expertise and nsultancy on the technical as well as mmercial side, Iyyanki explains. We strengthen our global distribution network in order to provide our customers with more localized solutions. The current enomic situation is resetting the entire world enomy. Many industries face challenging times as financing issues delay numerous projects in nearly every region. Rising to this challenge is GE Energy s bacher team, which has found that the recipe for success is really not that mplex: Continuous investment in the future is the key to emerging from this situation stronger than before. An unprecedented enomic environment is putting pressure on almost every industry today. Although predictions for the near future are hard to make, GE s bacher team is nvinced it is in the right business with its gas engines. We do not see projects being cancelled. Postponements due to mainly financing issues is what we currently face as a challenge, says Prady Iyyanki, CEO of GE s bacher gas engine business. In the mid- to long-term, we feel very nfident that the gas engine business will ntinue to grow. In the mid- to long-term, we feel very nfident that the gas engine business will ntinue to grow. Even if project owners and customers are facing enomic pressure, the need for power and decentralized highly efficient power solutions based on gas engine technology has not disappeared. In addition, growth assumptions for global power needs doubling until 2030 still appear valid. In order to me out of this current situation stronger than before, we have taken some actions in our business to remain mpetitive, build our strengths and foster innovation, Iyyanki says. GE s gas engine team follows three key initiatives in which it strongly invests: service, technology and globalization. GE s bacher gas engine team invests in three focus areas: service, technology and globalization. But the third-party network is not the only area of growth for the bacher organization. In addition, it is expanding on a global basis. We are just about to open a new Service hub in South Africa that will serve the southern part of the African ntinent with original bacher spare parts as well as highly experienced technicians who can also be a valuable resource for our distributors and service providers in the region, Iyyanki says. A new service shop in Singapore is operational since last year, and recently the decision was made to move some bacher technicians into GE s Kaluga Service Shop that will be built up in Russia. All moves aim to be closer to the customers, addressing questions and issues in the local language with local expertise, Iyyanki says. All moves aim to be closer to the customers, addressing questions and issues in the local language with local expertise. Lifetime Services from GE. Guiding customers through the entire life cycle of their engines is one of the key principles that the new bacher Service organization is following. Enhanced Remote Service capabilities, strong global verage in terms of field technicians, and new mmercial as well as technological service offerings are designed to help our customers make the most of their GE equipment, benefiting plant enomics as well as taking a lot of workload from our endusers, Iyyanki says. The enhanced approach is reflected in a new marketing ncept Lifetime Services Plus for bacher gas engines. The campaign will provide customers with on-hand information on new service offerings, ntract models and upgrade ncepts. Technological innovation for future growth. In line with its strong history of innovation, GE s bacher team is now designing the innovations for the future success of its customers. Just recently the new J624 engines reached full mmercialization. The newly released J6F version of the bacher series 6 engines, mmercially available since early 2009, is significantly increasing output and efficiency. Our efforts in innovation are focusing on what our customers need to work more efficiently and achieve better plant enomics, Iyyanki says. Innovation is a growth tool not only for us at GE, but foremost for our customers. Our efforts in innovation are focusing on what our customers need to work more efficiently and achieve better plant enomics. Besides enhancements of our existing product lines, we are working on additional projects to expand our product portfolio, but also to enhance our service offerings, Iyyanki says. Among these enhanced offerings are financing opportunities that the team wants to create. Strong operation with the GE Capital division and financing partners with global reach has been kicked off to help customers receive muchneeded funding for fundamental projects. The significant investment being made in the future will certainly pay off in the long run, allowing GE s gas engine business to me out of the current enomic situation even stronger than before. Our efforts in innovation are focusing on what our customers need to work more efficiently and achieve better plant enomics. Until the world enomy picks up again, nscious st management and a strong focus on execution on customer mmitments paired with the investment in technology are how the bacher team secures its business and best serves its customers._ 03 04

4 technology & product news technology & product news Latest development from bach: J6F GE s bacher team has another milestone from product development to report in this issue of Co. In the wake of the J cylinder gas engine, the latest innovation from GE Energy s gas engines division is referred to as the J6F, a designation standing for the new, improved engine type based on decades of experience with the tested and successful series 6 engines. Significant power increase. For GE, the new bacher J6F series represents an extremely mpetitive gas engine that sets new standards for engines with speeds of up to 1,500 rpm, undersring the mpetitiveness and technology leadership of GE Energy s gas engines division. The remarkable feature of the J6F is a 10% increase in power output to 3.3 MW for the 20-cylinder engine. The increase in electrical efficiency depends on the application, but can be improved by up to a whole percentage point to approximately 45%. Overall, this represents a significant increase in engine efficiency. At the same time, thanks to its optimized mbustion, the J6F also produces fewer unmbusted hydrocarbons (HC). A heart of steel. The new engines of the J6F series take advantage of the innovative technologies that have already been successfully introduced with the J624. For example, the possibility of operating the engine at a higher break means effective pressure of 22 bar was a decisive factor in increasing its efficiency. And it is here, too, that the value of a heart of steel bemes apparent: Steel pistons have higher peak pressure capability mpared to aluminum pistons. At the same time, the J6F geometry has also been optimized. Another technological enhancement is the new generation of turbochargers, which have a higher pressure ratio. This makes it possible to optimize the Miller valve timing, thus shifting the knock limit, which translates into improved mbustion. Lifelong savings. The improvements to the J6F series engines translate into cash for the customer. Increased efficiency means a longtime reduction of operating sts, and hence a reduction in the overall st of the electricity generated, which depends mainly on the price of gas. Since gas prices are expected to ntinue to rise over the next few years, this savings may be particularly significant. High efficiency and increased power output ensure lower power generation sts for customers. Netherlands puts its trust in bacher technology. The pilot customer for the J624 was in the Netherlands, and the two pilot plants for the J6F series engines are also Dutch mpanies. This is not merely by chance, for when it mes to using the latest technologies for mbined heat and power generation, or for CO 2 -fertilization for greenhouses, the Dutch lead the way as does the bacher product team in innovation and research in the field of energy efficiency and power output. The fact that the worldwide bacher Center of Excellence for greenhouse applications is also located in the Netherlands shows that GE has long since regnized these synergies and used them to good effect. Green engine, lorful fruit. Each of the two pilot projects for the improved J6F series the rose grower Baarenburg and the tomato growing mpany of Prominent Kabel has installed a natural gas-fueled engine of the type J612F. Together, these plants exceeded the 10,000 operating hour mark at the beginning of Both plants are mbined heat and power stations that provide the greenhouses not only with electricity and heating, but also with CO 2 for fertilizing. The Prominent growers association, to which the tomato grower Kwekerij Kabel also belongs, has already gained experience with three bacher engines of the Type J616. The J6F s mmercial launch has me at a perfect time to help horticultural mpanies and other industries support the energy efficiency standards set by the EU. The advanced technology enables less power generation sts and thus overall lower production sts, agree Lars van Bar, General Manager of Kwekerij Baarenburg, and Richard Hartensveld, General Manager of Kwekerij de Kabel. The advanced technology enables less power generation sts and thus overall lower production sts. Lars van Bar, General Manager Kwekerij Baarenburg, and Richard Hartensveld, Kwekerij de Kabel Better together together better. The Prominent slogan uld well stand for the successful further development of bacher products from GE: Together we can achieve success. For apart from the dedication of the bacher development team, the significant increase in the power output of the J6F series was mainly thanks to close llaboration between GE and its customers. This proximity to the customer has made possible the ntinuous development and improvement of all our products. It will be interesting to see what the project pipeline produces next in the service of enhanced engine efficiency!_ > The improved series J6F already running at the dutch rose grower Baarenburg 05 06

5 technology & product news technology & product news J624 The future has already begun! The J624 the world s first mmercially operated 24-cylinder gas engine was the most important product innovation from bach in recent years. In 2007, it was presented to the general public, and it went into operation in a Dutch pilot program in The engine embodied the ncerted effort of over half a century of experience at the forefront of gas engine technology. In the first issue of Co, we presented the innovative J cylinder gas engine as a quantum leap in gas engine technology. In the next issue, we were already able to report on its mmissioning in a Dutch pilot project with our customer Royal Pride Holland. Ever since September 2008, the first two J624s have been supplying the Dutch tomato greenhouse with electricity, heat and CO 2 for faster plant growth. A single J624 with an output of 4 MW can ver the power needs of about 9,000 European homes, reaching 46% electrical efficiency. Meanwhile, the Netherlands has already installed five J624 pilot engines, which have logged a total of 6,000 operating hours. The optimization work, which naturally has to be allowed for in any pilot scheme, has since been carried out, making the J624 ready for operation for a wide group of customers. Successful start of series production. Series production of the J624 started in November 2008 with the objective of worldwide engine mmercialization. It was not by chance that the first pilot plant was located in the Netherlands. With a large number of greenhouses and its enthusiasm for employing the very latest technologies, the Netherlands is one of our most important target regions for the J624. Of vine tomatoes and bouquets of roses. The first seriesproduced engine was also delivered to the Netherlands. In February 2009, it was dispatched to the untry s largest producer of cut roses, Zuurbier. The biggest order to date for bacher s most powerful gas engine was received in November 2008, when vine tomato grower Red Harvest ordered three J624 engines. However, the J624 also represents a highly efficient, innovative engine ncept for other energy-hungry industries the world over. What does the future hold for the flagship amongst bacher engines? Co will keep you posted._ Facts & figures J624 key technical data First 24-cylinder gas engine for mmercial operation Lean burn, turbocharged, mixture oled gas engine Compact high-speed engine with 1,500 rpm First fast-running gas engine in the 4 MW power range About 11.6 m long, 2 m wide and 2.5 m high Total weight: 41 metric tons Bore x stroke: 190 mm x 220 mm Total displacement: 150 l Fuel flexibility: natural gas and a variety of renewable or The world s first bacher J624 pilot engine provides electricity, heat and CO 2 as fertilizer for faster plant growth. alternative gases Electrical output: 4 MW Electrical efficiency: approximately 45% Overall efficiency: up to 95% > In September 2008, the first J cylinder gas engine went into operation for the dutch pilot customer Royal Pride Holland 07 08

6 technology & product news technology & product news Another tailored customer solution from bach: Type 6 engines now available in ntainer The Komi Republic, an autonomous republic in Russia, lies in a sparsely inhabited region of taiga and tundra. Although it is rich in natural resources such as petroleum and natural gas, the region s remote villages and industries often experience problems with local power and heat supply. For distant parts of the world like this, GE has developed a modular ntainer system that allows bacher gas engines to be delivered and assembled in a very short time period, even under challenging nditions. Since the beginning of 2009, this successful ntainer ncept has been available for the powerful type 6 gas engines, too. Reliable energy supply for remote areas. > Even under challenging nditions, bacher gas engines can be delivered and assembled in a very short time period, thanks to the modular ntainer system > Since beginning of 2009, bacher type 6 engines are available as READY-FOR-INSTALLATION ntainer solutions The idea of delivering a gas engine as a modular ntainer solution ready for installation is nothing new in itself. GE s bacher type 2, 3 and 4 gas engines have been installed like this for years. What is new, however, is that since the beginning of 2009, the bacher team has been able to deliver its type 6 gas engines (output 2 to 4 MW) all over the world as ntainer systems. The decisive factor in the decision to realize such a technically demanding modular ncept was the request from a customer from Komi, Russia, says Martin Widner, Application Engineer at GE. This was the impetus for the development of the new jumbo ntainer. Since the marsh forests of the tundra are readily accessible only for a few months in the winter and temperatures of around minus 40 degrees Celsius are normal at this time of year, a solution had to be found that would allow plants to be built quickly and safely. Customer success through innovation and teamwork. In close operation with Power Solutions, sales provider for bacher gas engines in Russia, a suitable associate for the development of a modular ntainer system for the powerful type 6 engines was sought. Together, we succeeded in building a standardized ntainer that mbines excellent transport stability and ready access for maintenance work. The issue was that up to 40 metric tons of lifting weight had to be safely transported a nsiderable strain on the ntainer. GE therefore decided to enter into a llaborative agreement with a leading Austrian nstruction mpany that specializes in the development of largescale ntainers in light-weight design. Together, we succeeded in building a standardized ntainer that mbines excellent transport stability and ready access for maintenance work. That has never been achieved before, ntinues Martin Widner. The customer from Komi can now mpletely ver its own energy needs and also dependably supply the surrounding villages in the region with power and heat. Short delivery times and minimal preparatory nstruction. With the modular ntainer solution for type 6 engines, a mplete power plant unit can be delivered in six trucks and mpletely assembled in just a few days. A base plate suitable for the weight and size of the plant and the gas supply are the only requirements the future plant operator must meet. A mplete water, oil and ventilation system are already integrated in the ntainer system. There are absolutely no tedious approval processes for the nstruction of an engine room. More security for financing. When customers decide to buy a bacher modular ntainer system, they receive a mplete solution from one source from production and assembly to service and maintenance. The ability to rapidly disassemble a ntainer plant and reuse it for other projects represents additional security for financing. Financing institutions are more willing to invest in mobile plants, especially in enomically difficult times, and this makes it easier for customers to purchase urgently needed energy systems. A mplete power plant unit can be delivered in six trucks and mpletely assembled in just a few days. In addition to nventional credit financing, a wide variety of leasing possibilities are tailored to the customer s needs. Finally modular ntainer systems are far easier to insure than, for example, plants assembled in halls, as they have a clearly definable value at any moment. Customers can feel an enhanced element of security when purchasing a ntainer system._ 09 10

7 industry news industry news Pushing the envelope: Cogeneration in Europe Today, 11% of Europe s electricity is supplied through generation plants. There are several industrial sectors where generation is an integral part of the modern process: chemicals, paper making and oil refining are three of the most visible. These industrial processes demand a high heat load, and electricity can be generated as a by-product either for use on-site or for export to the grid. In northern Europe, the significant domestic heat loads of modern cities have enuraged district heating schemes, which typically now are also generation applications. However, the vast majority of generation plants are small, with generating capacity under 10 MW. Schools, hospitals, universities, farms, mmercial buildings and sports mplexes are all potential applications for generation. A story by Fiona Riddoch, Managing Director COGEN Europe of their responsibilities under the Cogeneration Directive member states will submit their own estimates of the generation potential in their untry. Early results are interesting. Every member state, which has reported, shows potential growth. Several, including Germany, targeted or have shown that a doubling of the current capacity is possible, bringing generation in Europe to 22% of electricity supply. However, there is reason to believe that more still uld be achieved. The potentials study in Germany showed that there is enomic potential for generation to supply over 50% of Germany s electricity. If there was the political will to do this, there is no technical impediment. The Netherlands, Finland and Denmark already generate over 40% of their electricity from generation. Cogeneration technology helps to realize the European Union s energy targets: security of supply, climate change abatement and enomic sustainability. INVESTMENTS PAY OFF. The benefits to European citizens of full expansion of generation are a low risk path to short and medium term benefits in security of supply, climate change reduction, employment and their enomies. Investment in generation makes good social and enomic sense._ Through the reduction in primary energy use and higher efficiency, generation reduces CO 2 -emissions. Yet, the use of generation as an efficiency measure for the joint production of heat and power is still not a widely discussed option in the energy policy of European Union member states. Decision makers may have little information about generation, and the public at large (outside a few specific member states) are not really aware of the technology. Cogeneration gets very few lumn inches in the reports on energy news and climate change and is hardly mentioned in member state energy debates. EUROPEAN ENERGY POLICY. The European Union has three pillars to its energy policy: Security of supply, climate change abatement and enomic sustainability. In 2004, it adopted a Cogeneration Directive, which regnized that the potential positive impact of generation on security of supply and energy efficiency was such that the EU would seek to promote the widest possible adoption of generation. Despite good beginnings the legislation has made only slow progress into active member state policy, and it is only now in 2009 that the EU can really claim to have mpleted the legislative process and to be starting fully on implementation of the Directive. Full and robust implementation of the Directive will bring large energy efficiency benefits to the European Union. However, member state governments must show leadership, if this advantage is to be achieved. Cogeneration today needs a supportive policy environment, if the sector is to expand. While the logic of using energy as efficiently as possible is clear, the enomics of today s energy sector do not provide adequate returns to ensure generation investors a financial return for their efficiency. While in a fully functioning, perfect, free marketplace efficient generation would be mpetitive, today s energy sector is far from perfect. With generation there is clear and immediate benefit to society as a whole from using fuel more efficiently. The lack of internalization of the externalities of energy sts distorts the sector for generation as do inmplete liberalization and the several subsidies (direct or indirect) on energy, which still exist in member states. All these things mean that the return on what is a wise investment for society is lower than many investors will accept and carries a sobering level of risk. With generation there is clear and immediate benefit to society as a whole from using fuel more efficiently. But a new generation operator has to take on additional risks over and above his re business requirement for energy use. In this environment the role of policy is crucial. It signals to investors that there is structure to the risk they are undertaking and that they will be mpensated for taking that risk on behalf of society. THE ADVANTAGES OF COGENERATION. Europe has a lot to gain from the wider use of generation. Through its high energy efficiency, the technology cuts down total fuel demand mpared to the separate production of electricity and heat. Through the reduction in primary energy use, and the higher efficiency, generation reduces CO 2 -emissions, and as a mature available technology today it is one of the most immediate solutions, which we have available right now. Additionally, by its distributed nature, it reduces electrical grid losses and creates local employment. A generation plant is mparable in size to the boiler technology it replaces. It can habit well with domestic or mmercial organizations, and its effect is fuel independent. INCREASING CAPACITY. The member states of the European Union are currently assessing just how big the potential for generation is. As part COGEN Europe: COGEN Europe works with the European Union Institutions and promotes the interests of the generation sector within the European legislative process. The Association has a broad membership base and represents both the manufacturers of generation equipment and the users of that equipment and most of the supply and ntract chain in between. Based in Brussels, the association was founded in 1999 and was one of the main actors in shaping and in forming the Cogeneration Directive (2004/08/ EC), which provides the main policy framework for generation in European Union law. COGEN Europe members are active participants in the work of the association and llectively aim to ensure that the interests of the sector are understood and taken into acunt in all aspects of the legislative process that effect it. Author Fiona Riddoch Managing Director COGEN Europe 11 12

8 industry news industry news Empowering smarter energy choices now: Smart Grid Imagine a world powered by clean energy, a world where nsumers are empowered to save energy and money, and a world where plug-in electric vehicles are mmonplace. All of these scenarios ntribute to reducing our dependence on foreign fuels, slashing carbon emissions, and improving energy security. This is a more sustainable world a world made possible by a smarter grid. A story by Bob Gilligan, Vice President GE Energy Transmission & Distribution It might be surprising to learn that utilities typically hear about power outages only through nsumer calls. But why now? Currently, world energy nsumption is predicted to triple by 2050 worldwide. Power outages and interruptions st the U.S. enomy $100 billion annually. The U.S. spend $200,000 per minute, or $13 million an hour, on foreign fuels, and are producing less than 10% of energy domestically from renewable sources. Moreover, increasingly overburdened electrical infrastructure is quickly aging, undergoing little investment in 25 years. Today, we operate in a 21 st century society, built on a 19 th century electrical infrastructure, which functions with very little intelligence. It might be surprising to learn that utilities typically hear about power outages only through nsumer calls. The smart grid, however, will reflect the way we live today. THE ENERGY INTERNET. Simply put, the smart grid marries IT with our current electrical infrastructure, helping us support our 21 st century energy needs. The smart grid is essentially an energy internet, delivering real-time information and knowledge empowering smarter energy choices and delivering significant benefits: Optimizing renewable energy sources and enabling broader penetration. Empowering nsumers to manage their energy usage and save money without mpromising their lifestyle. Delivering increased energy efficiencies and decreased carbon emissions. Increasing power reliability and operational efficiencies, delivering greater productivity. DOING MORE WITH LESS. With world energy nsumption forecasted to triple by 2050, we need to find a way to do more with less and quickly. Smart grid technologies can help us get there through increased energy efficiencies and better utilization of our existing electrical infrastructure. What most people don t know is that there s inherent waste in the way our power is currently delivered. Without intelligent devices sensing how much voltage nsumers need, utilities will often deliver too much. Smart grid, on the other hand, delivers just what s needed. If installed on 10% of the distribution feeders in the U.S., GE s grid efficiency technology (i.e. GE s Coordinated Volt-VAr Control) is designed to reduce electricity nsumption by approximately 9.3 billion kwh per year, avoiding annual CO 2 -emissions equivalent to the emissions of 1.1 million cars on U.S. roads. The smart grid is essentially an energy internet, delivering real-time information and knowledge. RETHINK AND REDUCE - EMPOWERING CONSUMERS TO MANAGE ENERGY USAGE AND SAVE MONEY. Today, most nsumers are in the dark when it mes to energy nsumption and sts. Yet, with electricity rates rising, nsumers might be mforted to know that smart energy tools such as smart meters and home energy panels provide real-time information to help manage energy usage and save money. It s a fact! The utility s st of producing electricity varies throughout the day. Yet the majority of residential electricity customers pay one set price all day long. Smart meter technologies and demand response programs can change that through a feature called time of use pricing, a method by which nsumers pay lower prices for electrical power during offpeak periods. Smart energy tools provide real-time information to help manage energy usage and save money. Empowering nsumers with this knowledge can help save them money by enuraging off-peak usage of higher nsumption devices, like washers, dryers or air nditioners. In addition to putting nsumers in ntrol of their energy destiny, these technologies will help utilities manage peak demand from the source side. In a yearlong study by the U.S. Department of Energy, smart grid customers reduced peak nsumption by up to 15%, and overall nsumption by up to 10%. FUELING THE NATION WITH CLEANER, RENEWABLE POWER JUST GOT EASIER. Developing homegrown renewable energy is critical to reducing dependence on foreign oil. However, once significant levels of alterna- tive energy sources are integrated into the power system, further deployments will not be as simple as just plugging them in. One of the greatest challenges with renewables like wind and solar is that their power output is inherently variable. Smart grid technologies can help manage the variability of wind and solar to help alleviate reliability issues caused by power fluctuations. Automated demand response technologies will act as a lever that utilities can pull to help lower demand in the event there is a gap in renewable power generation for instance, if the wind stops blowing. To address such ntingencies, a utility may incentivize nsumers to opt into programs that allow certain devices to be temporarily switched off during peak times. In the future, storage technologies uld also help utilities manage the short term imbalances in the supply and demand of energy. KEEPING YOUR LIGHTS ON JUST GOT EASIER. Smart grid technologies provide real-time knowledge of grid status, enabling utilities to prevent trouble before it occurs, or, in the event of an outage, react quickly to reduce the impact. Ultimately, utilities will move from guessing to knowing with a technology that automatically senses faults and operates ntrols to isolate problems in sends. Smart meters will also help pinpoint exactly which customers are being impacted. Smart grid will help turn our greatest energy challenges into lasting solutions. Empowering nsumers with choice and ntrol will make them part of the solution. Technological investments can make the grid more capable of integrating renewable energy or at-home generation, and improved efficiency will help us do more with less._ Author Bob Gilligan Vice President, GE Energy, Transmission & Distribution 13 14

9 industry news industry news The preferred method of electricity generation for independent power producers: Multiple-engine approach In a highly mpetitive environment where the ability to offer flexible, low-st, reliable and high-efficiency power can mean the difference between winning or losing a bid for an electricity supply ntract, independent power producers must explore the most mutually beneficial options for nstructing a generation facility and meeting capacity needs. The stakes increase in developing areas where demand is high and an IPP may be the only power supplier supporting the grid. > Generating electricity with multiple gas engines offers the added benefit of mbined reliability and availability The world is experiencing enormous energy challenges. Thanks in large part to strong enomic growth and increasing populations in the world s developing untries, global energy nsumption is expected to double by The electric power utilities industry has been gearing up for this issue of supply and demand for quite some time, exploring many new options to deliver efficient, reliable electricity to its customers. independent power producers (IPPs). Still relatively new kids on the block, IPPs aid utilities in meeting power demand by generating the power they need to support area growth and peak demand periods. Not only has the existence of a third-party player introduced incentives like st savings and performance enhancements, but the highly mpetitive nature of independent power production means that IPPs are charged to employ, operate and maintain the very best and most efficient generation systems. Independent power producers may be privately held facilities and most often do not possess their own transmission facilities. IPPs usually operate within the franchised territories of host utilities and make electric energy available for sale to utilities or the general public. But, the equipment and method of generation IPP mpanies employ is just as important to their businesses and the utilities they support as their ability to maintain and offer it reliably. High fuel efficiency, availability and reliability supplemented with flexibility are the most important advantages of multiple gas engine plants. PROVEN TECHNOLOGY SUPPORTING LOCAL POWER NEEDS. In one of the largest orders of GE s bacher gas engines to date, independent power producers Doreen Power Generation & Systems, Ltd., and Doreen Power House & Technologies, Ltd., (subsidiaries of Asian Entech Power Corp., Ltd and Saiham Power Plant Ltd, respectively) purchased 28 of GE s bacher J620 natural gas-fueled engines to support a major rural electrification initiative in Bangladesh. Combined, the engines generate approximately 81 MW of electricity at four new power plants in developing areas of the South Asian untry. Three power plants were built, each with eight of GE s JGS 620 GS-N.L. bacher generator sets; and a fourth plant features four of the units. Utilizing the region s natural gas supplies as a primary fuel source to generate electricity, the generator sets support the national grid and help Bangladesh to meet its increasing power demand. The move was part of a government initiative to reform the untry s power sector, including through the development of IPPs. It also gave GE an opportunity to showcase GE s bacher gas engines as a viable option for growing power demand in rural areas, along with proven success in the industrial sector. GE s bacher gas engine technology is already well-known as a st-effective power generation system approach for the Bangladesh industrial sector. We have chosen bacher gas engines for our rural electrification projects based on the units reliability and performance rerd, said Tahzeeb Alam Siddiqui, managing director of Asian Entech Power Corp. A QUESTION OF PROFITABILITY. Generating electricity with multiple natural gas-fueled engines offers the added benefit of mbined reliability and accessibility not available with a single prime-mover, as well as other significant advantages, making this approach a highly enomical solution for IPPs. High fuel efficiency: Using multiple engines offers near maximum value efficiency with the mbined nversion of energy. A multipleengine approach ensures that the engines are nstantly running at or near their projected load, which yields the highest efficiency and the lowest possible maintenance sts. Because of their high fuel efficiency as single engines, multiple gas engines provide a rapid response to load changes. In other words, if demand changes, the output, or delivered electricity, can be easily adopted by switching a number of engines on or off, keeping the mbined efficiency high. Availability and reliability: In the event of an outage emergency, the necessary quantity of reserve power is also relatively low when multiple units are employed because one unit failure affects only a small sum of the total output. It is the mbination of benefits, that makes the multiple engine approach an enomical and highly attractive solution for Independent Power Producers. In fact, multiple engine plants have achieved near 100 percent reliability ratings, which gives ABBILDUNG 1: Efficiency of multiple gas engine plant mpared to a single PRIME- MOVER. Fuel Efficiency (%) Load (MW) Multiple gas engines Single prime-mover the customer the advantage of a stable electricity grid. Service maintenance also bemes a more seamless process in the multiple engine approach. Unlike plants run by one prime-mover, where a great deal of supply capacity is needed for scheduled maintenance, smaller engines operating in parallel can receive scheduled maintenance in sequence so that less spare capacity and no outage time is necessary. Flexibility: An added bonus is the ability to install or remove engines quickly and alter nfigurations in the multiple engine approach to satisfy changes in demand. This allows the IPPs high flexibility when capacity needs must be increased. With gas engines, extending or downsizing the plant can be done in a much shorter time and at a lower st as mpared to traditional prime-movers. Low emissions: Natural gas is characterized by the lowest CO 2 -emission level among fossil fuel. The utilization of natural gas in gas engines allows for particularly low emissions of SO 2, NO x, and particulate matter. Distributed power generation with multiple gas engines provides high efficiency and maximum reliability at relatively low specific sts. Our engines are characterized by a mpact design and high power density, and therefore require a mparatively small footprint, explains Martin Schneider, product line manager at GE s bacher gas engine business. It is the mbination of benefits, that makes the multiple engine approach an enomical and highly attractive solution for Independent Power Producers. _ 15 16

10 applications and solutions applications and solutions Promising electricity supplier for the future: Residues from agricultural production are a valuable source of energy, where the objective is to turn waste into energy. Biowaste All over the world, nsumption of energy is increasing steadily due to industrialization and population growth. More and more untries are now looking for alternatives to fossil fuels as a means of generating power. The goals of these initiatives are usually to protect the environment and to gain independence from foreign suppliers. Above all in agriculture and waste management, the use of organic waste products in biogas plants is opening up undreamed-of potential for the generation of electricity and heat. Germany, for instance, is taking a leading role in these international efforts with its renewable energy law. Numerous untries are following this example, and biogas plants are achieving a boom never seen before. What do Austrian wine growers, a Thai palm oil producer, a U.S. dairy farm and a Pakistani biofuel producer have in mmon? Quite simply, they all produce tons of organic waste that can be used to generate biogas. I really don t like using the term waste when we are talking about residue from agricultural production. Rather, we see it as a valuable source of energy, where the objective is to make good use of it, says Thomas Elsenbruch, Marketing Program Manager for GE s bacher gas engines. Biogas is a natural, purely elogical product that is extracted from biomass at biogas plants. Following Nature s Example. Biogas is a natural, purely elogical product that is extracted from biomass at biogas plants. When organic waste material undergoes anaerobic fermentation a ntrolled demposition process a mix of gases is given off that nsists of 50 to 70% methane (CH 4 ) and 30 to 50% carbon dioxide (CO 2 ), depending on the makeup of the source material. Almost all organic substances can be transformed into biogas in this way, although the yield may vary significantly based on the source material. For example, a ton of chicken manure can produce 50 m 3 of biogas. The same amount of pig manure will yield only 21 m 3 of biogas. Biogas is an especially high-value fuel that is ideally suited for running gas engines. Biogas is an especially high-value fuel that is ideally suited for running gas engines. The energy produced can be used either for the mpany s own electricity needs or can be fed into the public power grid. The heat generated is typically used as heat supply for the plant. And finally, the material left over from the fermentation process is used as a high-quality fertilizer in agriculture. GE s bacher business has been supplying biogas-fueled gas engines all over the world for more than 30 years. The number of delivered engines has now grown to more than 1,500 units and growth has accelerated rapidly in recent years. From the vast expanses of the northern U.S. to the tropical hills of Thailand, bacher biogas engines operate reliably in extremely varied climatic nditions. From manure lakes to energy lakes. With 1,100 milk ws, the Norwiss dairy farm appears quite similar to untless others in the dairy state of Wisnsin. Every day, the animal residents of the farm produce an incredible 70,000 liters of liquid manure, which are stored in so-called manure lakes. Apart from the unpleasant odor, these vast amounts of liquid manure caused by the density of cattle in the U.S. make up approximately 15% of anthropogenic methane emissions. The Norwiss farm differs from the area s other farms in one respect: By using the biogas gained from the fermentation of w manure for power generation, the manure lakes have been turned into energy lakes. The farm now not only mpletely vers its own energy needs, it also supplies 600 households with reliable electricity. The original rethinking in this case took place on a small scale. Now, Wisnsin is expected to introduce changes at the state level that uld lead the U.S. to a greener future. The most plentiful oil in the world and what it is used for in Thailand. In terms of volume, at more than 42 million metric tons, more palm oil is produced than any other plant oil in the world. It is used primarily in the food, smetic > 17 18

11 applications and solutions applications and solutions > > and aluminum industries, but it can also be mixed with diesel or nverted directly to biodiesel. Planting oil palms is very promising because the industry boasts a particularly high yield per acre one of the main reasons for the popularity of palm oil farms around the world. There is a dark side, however: The oil production process generates huge quantities of organic waste material that, if not processed, has a negative impact on the elogical balance of the region. More untries now regnize the benefits of elogical and autonomous power supply as a huge advantage and are following the example of Germany. > China s First Chicken Manure-Biogas Plant > Biogas project in Italy: the government supports power generation using renewable energy sources Natural Palm Oil Ltd. in southern Thailand has made a long-term goal of recycling the waste material from its palm oil mills. Two bacher gas engines are already supplying 33,000 Thai households reliably with electricity. Recently, an order was placed for a third engine. We are very pleased with both power plants results. The high reliability of bacher gas engine on-site power technology nvinced us to install another bacher unit for our power plant production capacity expansion at the Chumporn mill, said Preecha Kuansongtham, Director of Natural Palm Oil Ltd. High-proof power supply. In Pakistan, a bacher gas engine found its way to a local ethanol factory run by Shakarganj Mills Ltd. It is used there to nvert the biogas incurred in the production of ethanol from sugar cane into electricity. As a renewable energy project, the plant is eligible for carbon credits because it enhances energy efficiency at the mill and displaces the national grid s energy generated from fossil fuels. By using the biogas instead of fossil fuels for power generation, the plant is expected to produce approximately 20,000 tons of certified emissions reductions annually. However, the potential is far greater. With 225 million liters of ethyl alhol produced annually in Pakistan, we expect many other distillery mpanies to install similar plants to support the energy needs of the national grid, said Kashif Kazmi, Project Manager for the plant. A clean affair: untries promote biogas. As these examples demonstrate, the advantages of biogas plants are apparent. And these are just a few of the types of organic waste that can be > Traditional biogas application: utilizing sewage gas in wastewater treatment plants > Biogas from w manure: Norswiss dairy farm turned into hard cash. In addition to the more traditional applications, such as utilizing sewage gas in wastewater treatment plants, new opportunities are nstantly developing. From an international perspective, the Kyoto Protol also plays an important role in the nstruction of biogas plants. So why has demand only grown so rapidly in recent years? The answer is simple: Thus far, biogas plants have only been able to mpete with the price of power generated using nventional sources of energy, such as nuclear energy, hydropower or calorific power, under certain circumstances. In order to be enomically mpetitive, the state has to provide assistance with fixed power prices to biogas plant operators, at least for a certain period. More and more untries now regnize that the benefits of elogical and autonomous power supply are a huge advantage and are following the example of Germany, Thomas Elsenbruch explains. The German Renewable Energy Sources Act (EEG) took effect in 2000 and promotes the expansion of power and heat generation using renewable energies. The idea is to offer operators of plants using renewable energy sources a fixed price for the power they generate for a certain period of time. The EEG and its revisions of 2004 and 2009 have been decisive in promoting power generation using renewable energy in Germany. Today, the German law is already nsidered a huge success story and, as a result, served as a model for 47 other untries, including the Italian government, which has issued so-called certificati verdi (green certificates) for power generation using renewable energy sources. These certificates are transferable mmercial instruments verifying that the power generated mes from renewable energy sources. In Eastern Europe and the emerging untries of Asia, efforts are increasing to promote the expansion of biogas plants by guaranteeing certain prices for electricity. Achieving the Kyoto goals with biogas. From an international perspective, the Kyoto Protol also plays an important role in the nstruction of biogas plants. Since 2005, mpanies that produce more greenhouse gases than the specified threshold values have been required to pay fines unless they buy emission certificates from other mpanies that produce less greenhouse gases than the permitted levels. One emission certificate rresponds to one metric ton of saved CO 2 -emissions and can be sold. The numbers for bacher gas engines with carbon credit projects are remarkable. A sewage plant in South Africa can earn 33,000 emission reduction certificates a year, which rresponds to the same amount in CO 2 -equivalents saved. A farm with three million chicken in China can save as much as 95,000 metric tons of CO 2 - equivalents. Obviously, bacher gas engines are making a verifiable ntribution to reducing CO 2 -emissions around the world and are at the same time helping mpanies lower their energy sts and recycle waste in a responsible and effective way._ 19 20

12 distributors and service providers distributors and service providers News from the Champions League Thanks to a dense network of local sales and service providers, bacher power plants can now be found virtually everywhere in the world. Authorized bacher sales and service providers offer professional support and outstanding service to customers of GE s gas engine division including mmunication in the local language and knowledge of significant regional information. The largest independent sales and service provider out of these is Clarke Energy. The bacher team has been working closely with Clarke Energy since 1995 to the mutual benefit of both mpanies, which are now playing in the Champions League of the industry. > Largest independent sales and service provider for bacher gas engines: Clarke Energy From its headquarters in Liverpool, UK, engines in Great Britain. The outstanding quality GE, Clarke Energy soon mmitted to interna- Clarke Energy Ltd. sells and provides support for of the engines made in bach and Clarke tional expansion. bacher products in many untries around the world, for everything from individual gensets, fueled by natural gas or alternative gases such as biogas, landfill gas or al mine gas, to entire mbined heat and power plants. Clarke Energy s re mpetence is in the nception and realization of mplete solutions for power plants with an output of up to 45 MW. With its policy of maintaining good customer proximity Energy s strong service and customer orientation resulted in resounding success. With customer proximity and more than 370 highly qualified employees Clarke Energy ensures top-quality service, technology and customized solutions to meet customer s energy needs. The decisive milestone regarding the mpany s current expertise in the power generation segment came in 1995, when Clarke Energy began working with bacher gas engines in Great Britain. In 1998, the mpany became the exclusive and with the expertise of more than 370 highly sales and service supplier for bacher prod- > Clarke Energy s headquarters in Liverpool, UK qualified employees, Clarke Energy ensures topquality service, state-of-the-art technology and The mpany ntinued to develop, expanding its range of products and services with a number of ucts in Australia and New Zealand, with Nigeria following in Just a few years later, Clarke Clarke Energy Ltd. customized solutions to meet customers energy technologies for various gas engine applications, secured its position in India and France with its needs. From a project s start to its mpletion, Clarke Energy offers professional project management and ISO-certified quality management. All services engineering and design, nsultancy and nception, installation and mmission- including professional project management and product expertise that is nstantly growing. It is particularly important to Clarke Energy to offer its customers enomical and elogically sound mplete solutions. In addition, the mpany has own branches. The Clarke Energy international network now includes branches in Ireland, China and Tunisia, and the mpany is still gathering momentum._ Largest independent distributor of bacher gas engines from GE Energy More than 370 employees in nine untries To date, plants installed with 1,700 MW More than 900 MW under O&M (operation & ing, and service and maintenance me from set up a dedicated customer service division for maintenance) operator ntract a single tried and tested source. bacher products. The extensive range of services includes a mprehensive stock of original From spare parts supplier to energy pro- bacher spare parts, service, repair and remote fessional. The decisive milestone regarding monitoring. the mpany s current expertise in the power generation segment came in 1995, when Clarke Sharing success around the world. Energy began working with bacher gas Reinforced by its successful llaboration with 21 22

13 distributors and service providers distributors and service providers Clarke Energy s re mpetence is in the nception and realization of mplete solutions for power plants. Ultimate ambition: Maximized customer satisfaction Co talks to Jim Clarke, CEO of Clarke Energy Co: How would you describe the activities of Clarke Energy in a single sentence? Jim Clarke: We nstantly strive to find and realize innovative solutions to meet our customers needs. We meet these challenges by llaborating with the bacher gas engine division of GE. How important is the operation with GE to you, and what characterizes it? We have been llaborating with the bacher team since 1995, and we are currently working together in nine untries around the world. Both mpanies have grown significantly in the last few years. This is due in part to our excellent operation, which is based on nsiderable mutual trust, technical expertise and a shared customer focus. using 15 bacher J620 engines. Our services ranged from gas purification and treatment to feeding electricity into the public grid two kilometers away. As with all al mine gas projects, the biggest challenges were removing dust and moisture from the gas and regulating the fluctuating methane ntent of the gas. Another outstanding project recently was the mbined heat and power plant for Hydro Polymers Ltd. in Durham, Great Britain. Here, too, our assignment was the design and nstruction of a turnkey plant. The plant, with a natural gas-powered bacher J612 engine and an electrical output of 1.8 MW, was mmissioned in July The waste heat from the engine is used to preheat the air used in the customer s drying production process. With this, the plant achieves an outstanding efficiency factor of 90%. Thank you very much for this interview. > Coal mine gas project in Moranbah, Queensland, Australia: mplete solution from a single tried and tested source What joint goals have you set? Simply put, our goal is to install as many bacher gas engines as possible and achieve the highest possible degree of customer satisfaction. We are working together to acmplish this with our mprehensive range of services and our knowledgeable employees. Can you describe a uple of outstanding projects that Clarke Energy has mpleted recently? The first example that occurs to me is our al mine gas project for Energy Developments Ltd. in the Australian town of Moranbah, Queensland. The plant was mmissioned in November We designed and built a turnkey 45 MW plant fueled by al mine gas Co talking to: jim clarke CEO Clark Energy 23 24

14 region special region special The Need for More Power bacher Sales & Service Providers in Southeast Asia and India India Clarke Energy India Private Limited Shivkiran, Lane no. 4, Dahanukar Colony, Kothrud, Pune Phone: Thailand Italthai Industrial Co., Ltd New Petchburi Road, Bangkapi, Huay Kwang, Bangkok Phone: Indonesia Navigat Energy Pte. Ltd. 139 Cecil Street, Cecil House, Singapore , Rep. of Singapore Phone: Malaysia and Singapore JD Group Sdn. Bhd. 1, Jalan Lada Hitam Satu, 16/12A Shah Alam Phone: > Jakarta, Indonesia For additional information, please ntact our GE offices in India and Singapore 25 26

15 region special region special The untries of southeast Asia and India uldn t be more different, but most share one characteristic: The Need for More Power As their energy requirements grow along with their populations, the diverse untries of Southeast Asia and nearby India are seeking ways to fulfill their power needs. Stymied by lack of infrastructure and funding, many of these untries still have rural areas that are largely unserved by their power grids. And even those nations that have plenty of natural resources are faced with populations that have grown so quickly or are so spread out that their power supplies have not kept up with demand. Greater energy stability, security and sustainability were some of the energy goals outlined at the annual ASEAN (Association of Southeast Asian Nations) Ministers on Energy Meeting last August in Thailand. But although they agree on their untries energy needs, the nations participating in ASEAN uldn t be more diverse. THAILAND. There s Thailand, for instance, found in the heart of Southeast Asia and one of the most devoutly Buddhist untries in the world. Thailand s enomy is dependent on its exports, primarily rice and palm oil. Energy-wise, the untry, which is about the size of Spain, supplies electricity to about 80% of its 65.5 million population. A big problem is lack of natural resources, with Thailand importing most of its natural gas from Myanmar and Malaysia. Political uncertainty has plagued Thailand, too, hampering some infrastructure megaprojects. Thailand is the leading nsumer of electricity mpared with its neighbors. Still, Thailand is the major enomic power in the Mekong region and also is the leading nsumer of electricity mpared with its neighbors. In 2003, for instance, the untry nsumed 1,448 kilowatt-hours of electricity per capita, as opposed to China s energy nsumption at 827 kilowatt-hours per capita. The current installed power generation capacity is about 30 GW, not including imports of 340 MW from Laos and 300 MW from Malaysia. Peak demand is expected to rise to nearly 50 GW by IndonesiA. Unlike Thailand, Indonesia has plenty of natural gas, with resources estimated to last more than 50 years. Still, with less than 60% of the population served by the grid, Indonesia is especially hungry for power. The untry s 230 million population is spread over a untry that is made up of more than 17,000 islands, 6,000 of which are inhabited. The untry s people, most of whom are Muslims, work primarily in agriculture, such as rice, ffee and palm oil, as well as in industry, including petroleum and natural gas. Indonesia will need at least 20 GW of power expansion within the next ten years. The supply challenges in Indonesia are many. The untry is INDIA. Nearby India not nsidered part of Southeast Asia nor a member of ASEAN has the fourth-largest al reserves in the world. The untry currently has about 140 GW of generation capacity, mainly based on al, thermal and hydro, with about 8% from renewables. Dominating the South Asia ntinent, India made up primarily of Hindus has a diverse enomy, with about half its population in agriculture. Services are the untry s major source of enomic growth, however, acunting for more than half of India s output with less than one-third of its labor force. Commercial energy demand is expected to grow by 4% annually. Commercial energy demand in India is expected to grow by 4% annually. Although the government s goal is power for all by 2012, most rural Indian households do not use electricity about 80 million households still use kerosene for lighting and even in electrified villages, supply is inadequate and unreliable. Per capita energy use is just one quarter of the global average at 630 kw/annum. While most untries in the region lack electrical power, there are exceptions, such as the highly industrialized nations of Malaysia and Singapore. A peninsula bordering Thailand, Malaysia has plenty of petroleum and natural gas and not nearly enough people to use it all. The island of Singapore does import most of its fuel, mainly natural gas from Malaysia and Indonesia, to support the densely populated untry, which has 4.7 million people on 700 square kilometers of land. BUT INCREASING POWER IN THESE COUNTRIES dependent on oil for electricity generation, but oil production is depleting, and the untry sees al as the primary energy source of the future. Although al and natural gas reserves are abundant, the supporting infrastructure is limited, with a lack of gas pipe networks, al transportation and electricity transmission networks. Indonesia will need at least 20 GW of power expansion within the next ten years. In Indonesia from 1970 to 2006, the average growth of primary energy averaged around 8%, and the growth rate of demand through 2026 is estimated at 7%. Making up the largest energy nsumer is the industrial sector at 40%, followed by transportation at 38% and household and mmercial at 22%. With a total installed capacity of about 29 GW, Indonesia relies on al at 46% as its primary power supplier, followed by oil at 24%. Natural gas is third at 14%. > Southeast Asia s major problem: power supply has not kept up with demand ISN T SIMPLE. Industrialized untries such as Malaysia and Singapore generally rely on large, centralized power sources to meet their electricity needs. While these plants are usually quite enomical, they transmit electricity for long distances over huge power lines. That approach won t work in most rural areas of Southeast Asia and India, where many remote villages are not yet electrified or have low load densities. Extension of the grid is unenomical and would lead to heavy transmission and distribution losses. Around the globe, too, prices for fossil fuels have risen sharply. In fact, some Southeast Asian untries Vietnam, for instance have faced > 27 28

16 region special region special > energy crises because, as import prices rise, they just don t have the resources to meet their untries power needs. Those untries that have natural resources must deal with the nsequences of using them. India, for instance, has relied heavily on al, but realizes it must reduce its greenhouse gas emissions. Finally, lack of funding can make energy expansion difficult. Many untries are looking into carbon credit programs, emissions trading schemes designed to help mitigate global warming. The Clean Development Mechanism, an arrangement under the Kyoto Protol, allows industrialized untries that have a greenhouse gas reduction mmitment to invest in projects that reduce emissions in developing untries. As their energy requirements grow along with their populations, the untries of Southeast Asia and India are seeking ways to fulfill their power needs. Reliable power supply is key for enomic growth. Financing can also take place through sales of excess power. In India, for instance, there is a ready market for excess power since power shortages are frequent. Through such programs, existing and new customers uld add additional capacity and trade up to 50% of the total installed capacity. GE: A MAJOR PRESENCE IN SOUTHEAST ASIA AND INDIA. Traditional energy sources such as al and oil will ntinue to be used and needed in Southeast Asia and India, and GE s product and service offerings can be found in many untries in the region. GE s presence in Indonesia, for instance, dates back to the 1970s with the introduction of the turbine business and has ntinued to grow since then. In India, GE installed the first hydropower plant in Today, all of GE s global businesses have a presence in India, and the mpany participates in a wide range of manufacturing, services and technology businesses there. While GE Energy is well known throughout the region for its large steam and gas turbines and even for its nuclear business, huge centralized power sources simply can t meet all of the needs of the rural mmunities in Southeast Asia and India. A more suitable approach for those areas is distributed generation, where energy is produced very near where it is used, sometimes even in the same building. DISTRIBUTED GENERATION, RENEWABLES AND ALTERNATIVE ENERGY SOURCES. The Association of Southeast Asian Nations (ASEAN) has regnized the need and benefits of renewable, sustainable energy sources, which often are a natural fit with distributed generation. Thailand perhaps because of its lack of natural resources leads the region in terms of governmental support for renewable energy projects. The untry has implemented a law that enables small power producers to invest in renewable energy projects. In Indonesia, the untry has put priority on alternative energy development including renewable energy. The government s pricing policy gives major influence to better energy efficiency and energy diversification, which uld play an important role in reducing the st of electricity production, securing the energy supply and preserving the environment. In India, more state governments are moving toward renewable purchase obligations, and the Electricity Act 2003 mandates the Science and Engineering Research Council (SERC) to promote renewable energy development. Thailand perhaps because of its lack of natural resources leads the region in terms of governmental support for renewable energy projects. BIOGAS IN THE FOCUS. While the more traditional renewable sources of wind and solar have been employed in a number of Southeast Asia projects, one option gaining widespread support is biomass plant matter, such as agricultural waste, grass, crops or waste materials from such industries as sugar cane and palm oil that can be used as a solid fuel or nverted into liquid or gaseous forms to produce heat and electricity. Thailand, for instance, produced 1,500 MW from biomass in 2007, and the Ministry of Energy is targeting 2,800 MW by Also gaining popular support is the utilization of biogas from animal manure, which lowers greenhouse gas emissions as well as animal waste. That s significant in Southeast Asia and India, where such waste increasingly poses groundwater ntamination issues in some areas. Currently, Thailand s power generation output from biogas is about 28 MW, but that figure uld expand to 60 MW by 2011 and the Department of Alternative Energy Development and Efficiency has targeted a potential capacity of 190 MW. Sources are livestock farms, agriculture and the palm industry. Biogas is also seen as a solution in India, where plants uld use w manure, slaughterhouse and vegetable market wastes, as well as urban and industrial wastes. Co-digestion of farm and agriculture residues can be mingled with urban and industrial wastes. The untry s Ministry of New and Renewable Energy estimates biogas potential from agro-industrial wastes at about 1,300 MW, primarily from distilleries, but also from such industries as sugar, starch and slaughterhouses. The Association of Southeast Asian Nations has regnized the need and benefits of renewable, sustainable energy sources. The financial viability of biogas projects in India depends on revenue sources, such as sale of power, sale of manure and mpost, and carbon trading through the Clean Development Mechanism (CDM). Government support has included provisions in Electricity Act 2003 such as open access to the grid for renewable power, preferential tariffs by state regulators, targets for renewable power and captive generation dentrolled. Fiscal incentives or ncessions include customs duty for imports, excise duty for manufacture of renewable power devices and inme tax. Dumpsites, too, nstitute a valuable energy source. Municipal solid waste (MSW) now just produces 4 MW of power in Thailand, but the government has targeted 100 MW by The source: 9,000 tons per day of waste in Bangkok alone, with 6,300 tons per day from other municipalities and 1,000 tons per day from industry. SOLUTIONS WITH JENBACHER GAS ENGINES. Gas engines often are a practical solution for decentralized power generation. Offering small footprint requirements and quick installation, they can even help solve environmental dilemmas. Financing can be done utilizing carbon credits, and payback on investment can take just a uple of years. Following are solutions that uld be significantly expanded in Southeast Asia and India, based on those untries resources and needs: Palm oil plants. Malaysia is the top producer of crude palm oil, followed by Indonesia and Thailand. In Thailand alone, GE has about 20 installations, some of which have several engines, at palm oil plants where 40 to 45 tons of palm oil fruit can create the equivalent of 1 megawatt of electrical power within an hour. At the Tha-Chang mill, the Thai Biogas Energy Company (TBEC) processes 60 tons of palm oil fruit per hour. Palm oil mills involved are llecting carbon credits and can even sell electricity on the grid. Read more about this project on page 33. Tapioca starch factories. A new biodigester system at the largest tapioca starch factory in Southeast Asia provides nearly 100% of the factory s nsiderable energy demand, displacing significant annual purchases of fuel oil and grid electricity. The grid-nnected 5 MW power plant supplies all its electrical energy to the factory, with the added capability of selling surplus > 29 30

17 region special region special > electricity to the local utility. The Korat Waste-to-Energy Co. Limited (KWTE) is a pioneer in this field and owns and operates the facility as a renewable energy services mpany. The factory includes three bacher J320 generator sets. Landfill sites. Using bacher engines, mpanies can produce green power, while minimizing land and water pollution. The life span of the dumpsite can be increased three to five times as well. In Singapore, for instance, bacher gas engines are being used in the untry s first organic waste biomethanization treatment plant. Cow manure. In India, a methane-to-energy plant uses 235 tons per day of cattle manure to produce 1 MW of power and 35 tons per day of organic fertilizer. The project, which uses bacher gas engines, received the Best Green Power Plant in Asia award at Power-Gen Asia Facts & Figures India Natural resources: Coal (fourth-largest reserves in the world), iron ore, manganese, mica, bauxite, titanium ore, chromite, natural gas, diamonds, petroleum, limestone Population: 1.15 billion (2008) Government: federal republic Enomy: average growth rate of more than 7% from Poverty reduced by about 10 percentage points. Electricity production: billion kwh (2007) Electricity nsumption: billion kwh (2006) Natural gas production: 31.7 billion cu m (2007) Natural gas nsumption: 41.7 billion cu m (2007) Sewage gas. Biogas can be produced by the digestion and incineration of sewage sludge. In India, for instance, sewage treatment plants have been established in major cities, with funding available through Jawaharlal Nehru Renewable Urban Mission (JNURM), providing an opportunity for bacher engines. Associated petroleum gas. In Indonesia, opportunities exist to use associated petroleum gas, often called flare gas, unwanted natural gas that is disposed of by burning as it is released from an oil field or at a gas processing plant. GE s bacher solutions are helping to meet the region s energy demand. Programs are being developed for associated petroleum gas utilization, mostly for small power generation. For a long time, this unwanted oil by-product has been simply flared. But because of the increase in both environmental nsciousness and energy demand, flaring is now often avoided or even prohibited. GE s solutions are helping to meet the region s energy demand. A well-established sales and service network for bacher gas engines in Southeast Asia and India ensures that GE is set up to support the region s needs. In addition, the Hangzhou packaging operation for bacher gas engines, which ships engines for Southeast Asia, ensures fast response and excellent customer support. A strong network of distributors Clarke Energy in India, Italthai in Thailand and PT Navigat in Indonesia provide local expertise with their thorough knowledge of the untries we serve._ Indonesia Natural resources: petroleum, tin, natural gas, nickel, timber, bauxite, pper, fertile soils, al, gold, silver Population: million (2008) Government: Republic Enomy: GDP real growth rate 6.1% (2007) Electricity production: billion kwh (2006) Electricity nsumption: billion kwh (2006) Natural gas production: 56 billion cu m (2007) Natural gas nsumption: 23.4 billion cu m (2007) Thailand Natural resources: Tin, rubber, natural gas, tungsten, tantalum, timber, lead, gypsum, lignite, fluorite Population: 65.5 million Government: Constitutional monarchy Enomy: annual real GDP growth averaged 6% from ; but declined to 4.9% from Electrical production: billion kwh (2006) Electrical nsumption: billion kwh (2006) Natural gas production: 25.4 billion cu m (2007) Natural gas nsumption: 35.3 billion cu m (2007) > Tradition meets innovation: GE s solutions are helping to meet the region s energy demand 31 32

18 region special - sucess story region special - sucess story bacher engine where it, along with oxygen, can be burned directly. 40 to 45 tons of palm oil fruit can create the equivalent of 1 MW of electrical power within an hour. The Tha-Chang mill produces 60 tons per hour. The palm oil mills involved can llect carbon credits for the power produced, which can be turned into money. In Thailand, too, an innovative government program allows palm oil mills to nnect their power to the grid and sell it. Since this energy mes from Turning waste into energy The area around the Tha-Chang palm oil processing mill in Thailand used to emit a pungent odor. Even worse, wastewater from the plant discharged methane a leading cause of global warming into the air. But that was before Thai Biogas Energy Company (TBEC), using GE s bacher gas engines, began Today, there s no longer a strong odor. There are no environmentally detrimental emissions. And palm oil producers are able to make money by generating power from the wastewater produced from processing palm oil. The palm oil business is a major industry in Thailand, send only in the world to Malaysia and Indonesia. Palm oil, which is used for oking in most Southeast Asian kitchens, mes from the fruit from palm trees. Fruit bunches grow on the palm trees for six to eight months until they are ripe and weigh 30 to 40 kg, and then they are cut off and llected. At a processing mill, the fruit bunch is steamed and the crude oil is pressed out of it. Wastewater that is created in the process is pumped into a lagoon. THE THA-CHANG MILL PROJECT. In Thailand, temperatures reach 90 degrees Fahrenheit or higher each day. The steamy wastewater creates bacteria, which quickly begins to smell, and the bacteria creates methane, which climbs into the atmosphere. Or that s what used to happen at the Tha-Chang mill. TBEC has vered the wastewater lagoon with what looks like a huge blanket. The methane that is emitted from the lagoon is llected and sucked out from under the blanket into a The oil production process generates huge quantities of organic waste material that, if not processed, has a negative impact on the elogical balance of the region. > The palm oil business is a major industry in Thailand, as well as in Malaysia and Indonesia a renewable energy source, they are also entitled to an add-on tariff. Obviously, the palm oil producers are very eager to do this, says Dietmar Rauter, GE Energy Sales Manager Southeast Asia. They are taking what used to be a malodorous area that emitted gases into the environment, and turning it into electricity. It is a winning situation for them. Payback on the initial investment is usually within two to two-and-a-half years. The palm oil producers are taking what used to be a malodorous area that emitted gases into the environment, and turning it into energy. TBEC, one of the leading biogas mpanies in Thailand, has four operating projects that create biogas and electricity. In addition, annual carbon credits from TBEC s projects exceed 130,000 per year. The mpany develops, designs, finances, implements, operates and maintains the projects. Thailand s shape really benefits this nversion of methane to electricity, Rauter says. The palm oil mills are mainly in the south of Thailand fairly near tourist areas and major cities and are very well nnected to the electric grid. THE JOURNEY HAS JUST BEGUN GE sold its first bacher engines for Thailand s palm oil industry in 2006 inciding with the passage of Thailand s carbon credit laws. Today, GE has about 20 installations, some of which use several bacher engines. The plants range in size from 500 kw up to 6 MW of power. Very large plants process some 200 tons of fruit per hour. Carbon credit trading development has been a major factor in this industry, since it is a big part of the payback to the palm oil producers, Rauter says. Educating those palm oil producers about the benefits of beming electricity producers has been a challenge, but more and more palm oil mills are regnizing that they can profit from the system. And this business gets more and more interesting in other untries, such as Malaysia, as well. The system used at palm oil mills is also easily replicated for other industries, such as tapioca starch factories. Meanwhile, however, palm oil farmers in Thailand are reaping the benefits from TBEC s projects as their smelly lagoons are replaced with the smell of money._ 33 34

19 service service plus Lifetime Services for bacher gas engines Investing in tailored solutions for our customers: With the bacher service team, customers get an alliance for life The bacher service team offers its customers customized, professional service throughout the life cycle of their bacher gas engines, living up to its responsibilities for the smooth operation of the customers equipment. It is not just the development and production of best available gas engine technology that makes GE s bacher product line highly successful. After all, it is the right service at the right time that ensures optimum operation of the engine, and thus the efficiency of the plant. The 450-plus employees of the global bacher service organization and the 1,500 service technicians working for authorized sales and service providers more than 60 around the world ensure that GE customers have the very best care and support. GE s life-cycle management undersres the mpany s high quality standards and assures us of the best service whenever we need it. Kwekerij Baarenburg, Niederlande When signing a ntract for a bacher gas engine, you are really entering into a life-long partnership. GE s life-cycle management undersres the mpany s high quality standards and assures us of the best service whenever we need it, says the Dutch rose grower Baarenburg, describing the longtime relationship with the gas engine division of GE Energy. Lifetime Services Plus for bacher gas engines. With bacher gas engines, life cycle management begins the moment they are mmissioned. Customers around the world value the secure feeling of all-around support whether they are in a Dutch tomato greenhouse, Upgrades, Repair and Overhaul Commissioning Spare Parts Field Service Remote Monitoring, Diagnostics and Servicing Contractual Service Agreements Training the elegant Plaza Indonesia hotel and shopping mplex in Jakarta or at the Strass sewage treatment plant in Austria. Investing in flexible, customized solutions for customer success. Commissioning. Our experienced certified field technicians make sure the engines are installed acrding to our customers requirements. Service agreements. Flexible service agreements meet our customers maintenance requirements while giving maximum st ntrol for the life of the gas engines. Training. Specialized, practical training programs for customers, operators, and sales and service providers are targeted to meet the individual needs of participants. Remote monitoring. With timely and accurate technical support, our remote monitoring, diagnostics and servicing is provided globally through the bacher service network. Field service. Local presence of bacher sales and service providers in more than 60 untries around the world ensures the very best care and support for customers at their locations. This in turn creates a high level of customer satisfaction. Spare parts. The first-class quality of bacher original spare parts ntributes significantly to the engines long service life of 60,000 operating hours and more. Parts can be delivered on time around the world. Upgrades, repairs and overhauls. With upgrades nsistently installed in the urse of regular maintenance work, the power plant can run even more efficiently. In the case of major overhauls, the bacher Repair Center offers attractive, flexible solutions. Downtime is minimized with time-saving exchange engine options._ 35 36

20 service service Technology development is at the forefront for GE Energy s bacher gas engine division In top form! Some 200 employees worldwide work on the technological development of bacher gas engines. Between 2005 and 2009, the mpany doubled its investment in this area, undersring the importance that GE places on technological advancement. Since the beginning of 2009, a dedicated team within the newly established Technology Service division has been working on improved service solutions for plants that have already been installed. Co speaking to Bernd Wilmsen, Technology Leader Service for the bacher product line At the same time, we are ntinually working on improvements in the area of remote nnection. We are testing the use of satellite links, among others, in order to offer this service in more remote regions in which no Internet or telephone nnections are available. All in all, we see it as our obligation to care for the engines over their lifetime, in order to make it possible for our customers to operate their plants in a st-efficient manner. An additional objective is also to further improve the durability of re mponents. Is there also potential for improvement of bacher engines in the environmental area? Gas engines are already among the cleanest types of engines available, and we are achieving excellent results with such products as the CL.AIR exhaust gas treatment. However, there is still potential to further reduce emissions, for instance in the area of mbustion optimization, catalysers or thermal after-treatment. It is a very important area for us. Co: Mr. Wilmsen, GE is among the world s leading mpanies in the design and production of gas engines for the efficient generation of power and heat. How significant is the development of technology in your mpany? And what are the main objectives for the new Technology Service division for bacher gas engines? Bernd Wilmsen: Investment in technological advancement is at the forefront at GE. On the one hand, it helps to secure our technology leadership for the future. On the other hand, advancement is critical because we are acuntable to our customers. After all, they are accustomed to purchasing innovation when they buy a bacher engine. In the Service Technology division, we are working to ntinually improve engines that have already been installed, to make it possible for our customers to operate their plants in an even more enomical manner. At the same time, we are also developing new products, for instance for gas cleaning, which will deliver added value for existing plants. bacher plants already achieve an efficiency level of over 90%. Is an improvement in efficiency even possible? Of urse, it s difficult to improve on peak values of 90% for mbined heat and power generation plants. There are, however, still applications with potential, such as when there has been no heat demand so far and therefore the waste heat from the engines has not been used. We are presently developing a process for this application in operation with GE s Global Research Center in Munich. Our technological developments are always catered towards customer benefits. What further potential for development is the Service Technology division currently working on? On the whole, our technological developments always have customer benefits in mind. For our customers, the reliability of their engines is particularly important. We achieve improvements above all through better adjustment of the plant to the different areas of application, because the better an engine is calibrated to its specific use, the more reliably it runs. In addition, we are developing new service maintenance strategies in the Service division that are ideally suited to the requirements of our customers. A key term in this ntext is ndition-based maintenance. We are investing in the future now, so that we will ntinue to be a technology leader in the gas engine industry. How is bacher ping with the current tense enomic situation? Are you more cautious at the moment? No in fact the opposite is true. We keep on increasing our investments in technological development every year, and in 2009 we are planning to spend about 10% more than the previous year. We are investing in the future now, so that we will ntinue to be a technology leader in the gas engine industry. Thank you very much for this interview. Co talking to: bernd wilmsen Technology Leader Service > GE s bacher team is now designing the innovations for the future success of its customers 37 38

21 service service So far, so near: Connecting customers remotely in Asia Growing energy nsumption in Indonesia presents a challenge to the state-owned energy providers, and energy shortages are mmonplace. With the showcase project Plaza Indonesia Extension, GE has established itself in Asia as a mpetent provider for the growing number of mpanies looking for a reliable, decentralized energy supply. A decisive factor here is the possibility of remote monitoring for the bacher plant using the Hermes remote service package, which this customer decided to purchase. Faster and smarter: Digitizing Field Service GE keeps up with the latest technology, even when the issue at hand is documentation of the services provided. Among other things, the Signature Pad (digital signature) greatly simplifies paperless acunting between the service technicians and customers, therefore speeding up the entire process. Plaza Indonesia Extension remote service, without a service technician Paperwork was yesterday. a prestigious project in Asia. The Plaza having to drive to the plant. In addition, with In days gone by, bacher service technicians had to fill out a Indonesia Shopping Center and the Grand Hyatt regular maintenance and overhauls, the technical number of forms when they carried out maintenance work or Jakarta, one of the most symbolic buildings online support helps achieve better planning mmissioning at the customer site. In addition to their technical in Asia, is located at the heart of the business and organization. Overall, remote service signifi- mpetence, they had to demonstrate their skills in a wide variety district in Jakarta. The expansion project is also cantly improves both the availability of the plant of report writing: Assembly reports, time sheets, travel expense one of the most prestigious projects for the - and its efficiency. And finally, the data analysis and out-of-pocket acunting were all part of the program. The bacher gas engine division of GE. Nine natural can be extremely helpful when optimizing the customer onsite had to sign personally to nfirm that the work gas-fueled J620 GS engines with total electrical individual plant with customized solutions, which had been carried out in good order. output of about 25 MW will in future supply the is another benefit to all customers. entire mplex with reliable, efficient energy. Signature pad is today. Making use of learning. In addition to the With the introduction of the ERP system from Oracle, service Remote from Jakarta to bach. One customers, the authorized service providers also technicians can mplete all reports onsite on their laptops. The of the challenges of this first remote nnection benefit from the use of remote technology. The customer s signature is digitized using the Signature Pad and in Indonesia was the untry s IT infrastructure, availability of plant data has a direct impact stored together with the reports. The advantage to the customer: which had not kept pace with enomic growth. on improved planning for services offered and The entire process is simpler and better, and the time saved on Together with the local sales and service pro- therefore on the expansion of the service m- administrative work can be used for personal ntact. vider PT Navigat, the bacher team set up an petence of bacher service providers. In the > Prestigious project: The Plaza Indonesia Internet nnection for the remote service. The nnection has been as trouble-free as it is in all case of mplex issues, the Excellence Center in bach can also dial into the plant quickly and Plaza Indonesia facts: A small but important side benefit is that the new ERP system also allows structured, simple rerding of empirical values, ncerns other areas of the world. easily to help with error analysis. Once again, and areas for improvement that can be addressed in the long Available for all eventualities in an this means that the customer benefits from optimized plant availability thanks to the remote Total space: more than 220,000 m 2 5 underground levels with parking for term to improve the bacher products._ instant. Remote service offers many benefits to the customer. In case of a malfunction, remote service help is immediate, and downtime can be minimized. Statistics show that 50% of technical problems can be eliminated with nnection._ around 1,200 cars 6 floors of entertainment with a movie theater and shopping mall 41 storeys office tower, 48 storeys residential tower 39 40

22 service service New from old: Major overhaul of the Strass wastewater treatment plant After 60,000 operating hours, it was time to overhaul the sewage gas generation unit of the Achental-Inntal-Zillertal Wastewater Management Association in Strass, Austria. The bacher unit at this sewage treatment plant is responsible for power supply of 167,000 residential homes. After a rerd time of just 15 days, the engine was reinstalled and performance has been significantly improved ever since. After the major overhaul, the mbined heat and power plant at the sewage treatment plant in Tyrolean Strass is ideally equipped for the next 60,000 operating hours or 2,500 days. Furthermore, it is more efficient and enomical than ever before. Its efficiency was increased by 1.5 percentage points with the upgrades carried out in the urse of the general overhaul. In addition, a number of technical innovations have reduced the plant s gas nsumption by about 30,000 m 3 per year. With specific upgrades and overhauls GE ensures that our customers bacher engines are kept with the latest technology. For the customer, the most important factor in improving the profitability of the plant was not improving the output of the engine, but increasing its efficiency. In the past, because of the natural fluctuations in sewage water volume, biowaste had to be added at times to achieve sufficient gas volume. Thanks to the now-reduced gas nsumption, this is only necessary in exceptional cases. The bacher service offer of an exchange engine during the overhaul was not needed > Rerd time for overhaul: 15 days since the Strass sewage treatment plant has two older engines that operated during this time to dispose of the gas and secure power supply. As good as new. This example clearly shows how a major overhaul can bring huge savings to the customer. The sts are about a third of the st of purchasing a new engine, which in many cases makes a major overhaul due after 60,000 operating hours a good alternative to purchasing a new engine. With specific upgrades, bacher engines are kept with the latest technology by undergoing an overhaul. For the customer, these improvements ensure the efficient operation of their plant._ Co talks to Josef Dengg, Managing Director of the Achental-Inntal-Zillertal Wastewater Management Association A good fellowship Co: Why did you decide to have your plant mpletely overhauled instead of buying a new engine? Josef Dengg: Enomic nsiderations were the decisive factor. A major overhaul which usually increases the service life of an engine by around 12 to 15 years was much more profitable for us than buying a new engine. The upgrades carried out at the same time to improve efficiency made it even more st effective. What are the most striking aspects of your relationship with the bacher service team? In our dealings with the bacher team, they have always been mpetent, reliable and have worked well with us. On this basis, we have developed an elogical and enomical symbiosis based on fellowship over the last 19 years. The bacher overhaul resulted in 30,000 m 3 less fuel nsumption per year. > Ideally equipped for the next 60,000 operating hours: sewage treatment plant in Tyrolean village Strass 41 42

23 supply chain supply chain The re mponent from Tyrol As one of the world s leading manufacturers of gas engines, GE even has its own crankshaft production facility in bach. The facility is currently being significantly expanded to achieve greater production depth and flexibility. Customers will benefit from this move with shorter delivery times and superior quality. > GE is investing in the latest crankshaft production technology in bach Crankshafts a re engine mponent. Every reciprocating engine ntains a crankshaft, which transmits power to other mponents, such as the generator. Along with the nrods and pistons, the crankshaft is therefore a re engine mponent. Continous investment in latest manufacturing technology increases flexibility and capacity. It is hardly surprising that this mponent is extremely strained through bending, torsion and vibration. The requirements made on production are rrespondingly high. Besides material quality, factors such as geometrical accuracy, residual tension, surface quality and heat treatment during production processes are all of decisive importance to the equipment s quality and lifecycle. Each year, GE needs several thousand crankshafts for bacher gas engines as well as for other business areas within the mpany, such as GE Transportation and GE Oil & Gas. bacher is the only business within GE with the expertise to manufacture them. This capability is the result of more than three decades of experience in the production of crankshafts for bacher Series 2, 3 and 4 engines. Capacity expansion brings benefits to customers and GE. GE s decision in mid 2007 to expand its crankshaft production was prompted by steadily growing demand. The nsequence has been not only a significant expansion of capacity, but also increased productivity. For example, setup times have been reduced to such an extent that the bacher team has been able to shift from nventional batch production to single piece flow production. For the customer, this means shorter delivery times not just for new engines, but also for maintenance and repair work. However, the biggest advantage of this expansion is the significantly increased flexibility. In the future, it will also be possible to manufacture crankshafts for type 6 engines. Production can then be adapted to changing customer demand. Quality not left to chance. Both sophisticated machine tools and skilled employees are needed to manufacture crankshafts that meet the high quality requirements for operation in bacher gas engines. For example, criteria such as tolerances of less than two hundredths of a millimeter for diameter, nicity, ncentricity, cylindricity and run out have to be achieved. This tolerance bench is equivalent to about half the diameter of a human hair. Highly qualified and experienced employees are the basis for implementing such technology. Here, too, the bacher team employs the very latest technologies, making it possible to achieve new capacities and faster processing times. Over and above this, the new machine tools offer higher processing quality and help to keep WIP (work in progress) to a minimum. In addition, the staff must be highly qualified and motivated for such an expansion and bacher certainly has such a staff. The gas engines division of GE attaches great importance to the training and further education of its apprentices and staff in all areas of the mpany from job preparation to development. Minute attention to detail. The fact that GE pays great attention to quality is illustrated by the oil holes in each crankshaft. These holes provide a reliable supply of oil to the bearings, and are therefore of decisive importance to both engine function and lifecycle time. Overlapping regions of individual holes are particularly critical; a bulk particle less than 0.1 millimeter in size may result in expensive motor damage. For this reason, the intersections must be precisely polished, cleaned and inspected. All this work is carried out by hand by our specially trained staff with the assistance of endospes similar to those used in medicine. It is understood that every crankshaft is subject to a 100% inspection for accuracy and surface quality, cracks and cleanliness before it is dispatched just-in-time for assembling in an engine. This is the only way to ensure that crankshafts do not beme soiled between production and installation. The crankshafts of plants being overhauled are also inspected for damage in the crankshaft production department, and are subjected to the same quality inspection processes as new crankshafts. From initial delivery to overhaul, the maxim is: Do everything possible to ensure unrivaled quality._ 43 44

24 personality story personality story An interview with Michael Wagner, Marketing Leader: Innovative products and creative solutions for a successful future Michael Wagner has a passion for gas engines. Born in Salzburg, he has been working with bacher gas engines for more than 16 years now and has long since grown to nsider Tyrol his home. He is an innovative engineer with business foresight, and he attaches equal importance to striving for technically perfect products actively seeking for direct ntact with the customers. In an interview with Co, Michael Wagner talked about the exciting times in the international gas engine business and the daily challenge of building customer enthusiasm for gas engine technology from GE. Co: Mr. Wagner, you have been working for the bacher product line for more than 16 years. Would it be fair to describe you as an old-timer in the mpany? Michael Wagner: You re right. Sixteen years working for the same mpany tends to be a rare thing in the current day and age. But I haven t worked in the same position for that whole time, and furthermore, the growth and changes in the mpany have always made my work exciting and challenging. Does that mean that we can unt on you for another 16 years? By then I would definitely be an old-timer. But seriously, we live in an amazingly exciting time. Demand for efficient, decentralized power stations has grown rapidly in the last few years. Given the fact that worldwide energy nsumption will double again in the next 20 to 30 years, I see no reason why I shouldn t work for the mpany for another 16 years. You and your team are responsible for the global marketing activities of bacher gas engines. What tasks does that include? Together with my team of 12 people, I am responsible for market research and strategic marketing for our gas engines. We also put a lot of energy into the development of new applications and services for our customers. Utilizing industrial waste gases, such as in the steel industry, is a good example. My job is to create new segments and develop regions for future business. What area of your work is the most appealing to you personally? Without doubt, the development of new applications for our gas engines. Many of the segments in which we want to be present today and in the future do not fully exist yet; they must first be actively created. From the business standpoint, that is an extremely stimulating challenge. It requires innovative ideas and the ability to realize them. That s a quality that bach as a location has always been closely linked to. GE does business in more than 70 untries all over the world with its bacher gas engines. Where else do you think this journey will take the mpany? Gas engines were traditionally a European application, but in recent years they have spread all over the world. Europe will still play an important role in our international business. In the medium term, however, I see the biggest potential for growth in Russia, India and Bangladesh, as well as in the Asian regions of Indonesia and China and in Brazil in Latin America. These emerging untries offer ideal nditions for the use of gas engines: strong enomic growth, mbined with rapidly increasing demand for electricity, with public power supply lagging behind. How do you see this development in light of the current enomic situation? Good projects that make enomic sense are realized even when the enomy is down. In some regions, however, there are delays because the question of financing cannot be easily solved there. In addition, most of our applications offer significant environmental benefits. The reduction of greenhouse gases is a central point within the European Union, with the renewable energy directive and the energy efficiency directive. North America, too, has experienced important changes in energy policy under the Obama administration. And last but not least, the subject of environmental protection will beme increasingly important in the emerging regions. As you see, there are not just enomic factors, but also environmental policy nsiderations that validate the use of gas engines. For us, as a mpany, it is now extremely important to position our bacher products and services so that we emerge from the crisis stronger than we were when we entered it. The current situation is therefore not just a risk, but also an opportunity. Nevertheless, the international gas engine business is beming progressively more mpetitive. What are the arguments in favor of a power plant from GE, from the customer s perspective? For customers, what is decisive is that the gas engine solves their energy problem. Sometimes they have no access to the public grid and have to generate their own power. Or, if they want to generate electricity and heat more efficiently, they may find that a generation plant is less expensive than are nventional means. In bach, we have been focusing for more than 50 years exclusively on the development, refinement and sale of stationary gas engines. This specialization has given us a leg up, both in terms of technology and in respect of our customer focus. For most of our mpetitors, gas engines are simply a by-product of diesel engines, whereas they have been our abso- lute re mpetence for years. In addition, service and customer support have the highest priority for the bacher team. We manage to maintain excellent customer proximity with our own subsidiaries and with our local sales and service providers. Thanks to our global network, customers can be sure they are in good hands with us. Thank you very much for this interview. Profile Age: 44 Education: Degree in Mechanical Engineering and Enomy from the Technical University in Graz, Austria Married, with two daughters Recreation: Enjoys spending weekends and holidays with his family. Keeps fit by mountain climbing and ski touring Since 2003: Marketing Leader, bacher gas engines 45 46

25 home base Answer an easy question and win a weekend in Innsbruck! All good things me in threes. And more! One time is no time at all, twice is better, and all good things me in threes. Though such expressions may be of proverbial relevance, they do not apply to Co! With the publication of our third issue we have now really got going, and are already looking forward to the forthming issues. The fact that our magazine has ntinued to grow is mainly thanks to all those who have once again fed our editorial team with ideas and nstructive suggestions in the past weeks. We would like to invite you once more to give us your opinions. What is still missing from Co? What would you like to see more of? Which themes should we devote more space to? We call upon you once again to please give us five minutes of your time. Simply answer the questions below and fax your answer to us on Or us your suggestions to jenbacher.jen@ge.m. Once more, we d like to express our heartfelt gratitude for your opinion and support. In return, we shall organize a drawing of all your ntributions: The lucky winner will receive a voucher for a weekend in Innsbruck for two persons. Masthead Publisher GE bacher GmbH & Co OHG Achenseestr. 1-3, 6200 bach, Austria From the city to mountaintop in just 20 minutes A year that is inseparably linked to the history of Tyrol and its provincial capital. Napoleon s army was sweeping across Europe. And the Tyrolean struggle for independence was raging on Bergisel. Andreas Hofer and his peasant troops nfronted the French and the Bavarians, and were victorious. A folk hero was born, and a myth created. These happenings have helped shape the identity of many Tyroleans up to the present day. This year marks the 200 th anniversary of this historic year, and it will be mmemorated by a host of events, including critical reflections on maintaining a balance between the traditional and the modern. And plenty of good reasons for visiting Innsbruck precisely this summer. I would like to read more in Co about: Which topic would you like to know more about in the next issue of Co? personal data: name: title: mpany: address: phone: Editorial team: Axel Dancker, Andreas Eberharter, Arnfried Kiermeier, Katherina Koller, Julia Kronthaler, Stephan Laiminger, Eugen Laner, Georg Male, Herbert Nagl, Thomas Misch, Thomas Pupp, Martin Schneider, Martina Streiter, Michael Wagner, Manfred Waldenmair, Christof Waltl, Salina Wieser, Karin Zogmayer Guest writers in this issue: Fiona Riddoch, Managing Director COGEN Europe Bob Gilligan, Vice President GE Energy, Transmission & Distribution Design and Layout: Zimmermann & Pupp Werbeagentur Printer: Alpina Druck GmbH, 6020 Innsbruck, Austria Printed on paper free from chlorine. Feedback: We value your opinion and welme your mments or questions. Please send them to the editorial team at jenbacher.jen@ge.m Picture credits: GE Energy, Clarke Energy, TV Innsbruck > Magnificent panoramic view from the Bergisel Innsbruck today. Hardly any other city mbines its Alpine temperament with urban flair quite like Innsbruck. It is this special charm that makes Innsbruck one of the most livable cities in Europe, and a popular destination for many city travelers and students. Thanks to the open borders of the European Union, the university whose medical faculty enjoys an international reputation has beme a lorful melting pot of young people. Like the locals, they too enjoy the unique mbination of recreation, outdoor sports and a lively restaurant and bar scene. Several years ago, star Iraqi architect Zaha Hadid created a new landmark for the city of Innsbruck here, where once the bayonets clashed and Andreas Hofer made his mark on history, here on Bergisel: the mpletely refurbished and imposing Bergisel ski jump. At the beginning of January each year, ski fliers nvene here to mpete against one another in the four ramps tournament. For the remainder of the year, visitors to the airy café right at the top of the jump can enjoy a magnificent panoramic view. And, on the opposite site of the valley across the city, they can also see the next destination worth a visit: Seegrube in the northern Alps. The trip on up into the northern Alps on the new Hungerburg funicular and an aerial tramway is positively breathtaking. These facilities enable you to get from the city centre to an altitude of over 2,000 meters in just 20 minutes. The architecture of the new funicular is also pretty spectacular. This is Zaha Hadid s send bold statement for the Alpine metropolis. The rugged cliffs of Karwendel seem close enough to grasp as your gaze falls on the Inn valley far below you. The panorama spans 360 degrees, and the snow-capped giants of the central Alps can be seen glittering in the distance on the horizon to the South. Those in search of relaxation can tuck into a typical Tyrolean plate of ld meat and sausage on the terrace and simply enjoy the good life. For the more athletic visitor, the entire region as the trendy name Nordpark suggests is ideal for hiking, climbing and biking. Here you are always at one with Nature, with the city before your eyes. And how would Andreas Hofer have ended this article? You guessed it: Men, the time has me to travel to Innsbruck! There is no right of appeal. 48

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