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GE to Develop H System with Calpine

Posted on December 7, 2004

Calpine Corporation, a North American power company, has signed a letter of intent with GE Energy for the joint construction of the world's first power plant based on the 60 Hz version of GE's most advanced gas turbine technology, the H System. The announcement was made at Power-Gen International 2004.

The new facility will be based on two GE 107H combined-cycle systems, which will provide a total plant output of more than 775 MW. The new plant is expected to enter commercial operation in the spring of 2008. The project site has yet to be announced.

GE will purchase the project development rights from Calpine and will finance, own and operate the facility. Calpine's Energy Services group will market electricity from the facility under a long-term marketing arrangement with GE. Under the agreement, Calpine will sell the power through a variety of long, intermediate and short-term contracts. Calpine will have an option to purchase the plant and become the sole owner and operator of the facility, following an extended period of GE ownership.

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