GE and China Huadian Corporation have signed a five-year joint collaboration agreement for distributed energy combined heat and power (DECHP) projects in China that is expected to boost US exports.
The agreement was announced on the eve of Chinese President Hu Jintao’s state visit to the US last week.
GE anticipates that at least 50 gas turbine-generator sets will be sold and installed in China, resulting in US$500 million in total revenue. Of that amount, approximately $350 million is estimated in US exports.
In addition, according to the US Department of Commerce, the agreement could support approximately 2100 US jobs and provide new opportunities for further job growth in both countries.
The use of DECHP could be the most efficient use of natural gas in China and will be a significantly cleaner alternative to the higher greenhouse gas emissions from coal-fired power plants.
‘The Chinese government has decided to promote the country’s DECHP market development, and China Huadian plays an important role in advancing that initiative,’ said Xianming LIU, general manager of CHEC New Energy Technology Development Co, an affiliated enterprise of China Huadian.