GE (NYSE: GE) and Chinese state-owned power utility Guangdong Energy Group today announced the signature of a long-term service agreement for Dongguan Ningzhou power plant, which is powered by three advanced GE 9HA.02 gas turbines. Additionally, GE also announced it will provide services to help ensure reliable and stable operation for a total of 10 GE aeroderivative gas turbines which currently power China Huadian Corporation LTD. (CHD)’s Tianjin Beichen, Guangdong Foshan, Jiangsu Jinhu, Shanghai Minhang, and Fujian Xiamen power plants.

Guangdong Energy Group

The cooperation between GE Gas Power and Guangdong Energy Group has an extensive and important history. In 2018, the two companies celebrated the start of commercial operation of Xinhui Power Plant, powered by two GE 9F.05 gas turbines. In 2020, GE announced that Guangdong Energy Group ordered three GE 9HA.02 gas turbines for Dongguan Ningzhou combined cycle power plant in Guangdong province, in the Greater Bay Area. The three units successfully arrived in Dongguan City last year, and once completed, Dongguan Ningzhou Power Plant will deliver the equivalent electricity needed to supply more than 4 million households in China—and be one of the largest gas-fired power plant in China.

Today’s agreement with Guangdong Energy Group includes spare parts supply, unit maintenance, technical support, and on-site services for up to 18 years to enable boost the reliability and availability of these power generation assets. The plant will add 2.4 GW of power to the Guangdong province in alignment with national goals to transition from coal to natural gas to reduce carbon intensity.

“GE Gas Power has established productive and successful relationships with CHD and Guandong Energy Group that allow our collective organizations to deliver meaningful innovation and energy contributions to China” said Xu Xin, General Manager, GE Gas Power China Services. “With the signing of these contracts, we mark not only a milestone in our cooperation with our customers but continue to demonstrate our continuous commitment to the localization of our power generation equipment for the Chinese industry.”

GE will continue to work together with Guangdong Energy Group and CHD to support the reliability, and availability of these assets, while also supporting their path toward the decarbonization of the power production across China. Case in point, GE’s HA units powering Guangdong Energy Group’s Huizhou power plant, in the Greater Bay Area, will initially operate on a blend of up to 10% hydrogen by volume, with potential for an increase in future. This first of this kind hydrogen-blended natural gas fueled facility in mainland China will be foundational in promoting the use of hydrogen blending in power generation across other provinces”.

China Huadian Corporation LTD. (CHD)

Since 2014, GE Gas Power and Huadian GE Aero Gas Turbine Equipment Co., Ltd. (HDGE), a joint venture between China Huadian Corporation (CHD) and General Electric,  have worked together to provide continuous, and effective solutions for natural gas power generation in China.

HDGE has introduced technologies for four types of aeroderivative gas turbine units in the LM2500* and LM6000* series, becoming one of GE’s three manufacturing sites for aeroderivative gas turbine production in the world, committing to providing LM-class aeroderivative gas turbine units and TM2500 aeroderivative gas turbine units and services for Chinese and global customers.

In 2016, GE Gas Power signed a Phase I long-term service agreement with HDGE for continued maintenance services of aeroderivative gas turbine units for three CHD projects in Shanghai Xinzhuang, Guangxi Nanning and Jiangxi Jiujiang. During the implementation of this agreement, GE successfully completed planned maintenance and outages, while improving the operational performance, reliability, output and efficiency of the gas turbines, with significant reduction of maintenance costs. Throughout the COVID-19 pandemic, the companies provided 24/7 online services during the lockdown period to ensure safe and reliable operation of the units.  In addition, in 2019 during the annual energy efficiency evaluation of gas turbine units in the power industry organized by the China Electricity Council, GE’s units installed at CHD’s Jiujiang and Minhang Power Plants won a “AAAAA” rating, the highest recognition awarded to the below 100MW category.

Based on this successful collaboration, GE Gas Power will continue to provide efficient and effective maintenance services as the OEM for ten GE’s aeroderivative gas turbine units installed at Tianjin Beichen, Guangdong Foshan, Jiangsu Jinhu, Shanghai Minhang, and Fujian Xiamen power plants supporting the development of the nearby industrial areas for further ten years. Used in combined heat and power (CHP) application, GE’s LM2500 units can achieve up to 85% efficiency as CHP process captures and reuses wasted heat or steam, and generates more energy per unit of fuel, while lowering carbon emissions and operating costs.