Cooperative Agreement Extended
GE Energy's oil and gas business and China Aviation Gas Turbine Company Ltd. (CAGT) have extended their cooperative agreement for small gas turbines in the industrial power generation sector. The new long-term agreement adds license and supply agreements to the packaging agreement that GE and CAGT signed in 2002
Under the new license agreement, GE Energy and CAGT will jointly develop a new GE10-1 gas turbine package designed to reduce packaging, installation and maintenance costs. The new gas turbine package will be targeted for specific applications in Asia, including but not limited to coke gas applications in China. Under the supply agreement, CAGT will package GE 10-1 gas turbines and manufacture parts and components for the auxiliary systems, incorporating a new design technology jointly developed under the license agreement for the Asia, Australia and New Zealand markets.
These long-terms agreements will strengthen the cooperation between GE Energy and CAGT, especially in the field of small power generation. CAGT is owned by AVIC 1, one of the China’s primary manufacturers of aero-derivative gas turbines and jet engines.
In December 2004, Shanxi Sanwei Group awarded CAGT an EPC contract for the second GE10-1 cogeneration plant in China to utilize coke oven gas. This market sector is expanding, due largely to the recent and rapid growth of electricity demand for China’s industry, and to the availability of large quantities of coke oven gas. The plant is planned to start up during the summer of 2005.