The exit is in line with GE’s focus on power generation businesses with attractive economics and growth trajectory
General Electric (GE) said that it wants to stop taking part in the development of new coal-fired power plants, and would rather continue to focus on its core renewable energy and power generation businesses.
The US conglomerate said that its planned exit from the new build coal power market will be subject to applicable consultation requirements.
While it pursues exit from new coal power projects, GE Steam Power, its steam power business, will continue to meet existing obligations of customers.
GE expected to cut jobs, close facilities as part of the planned exit
GE’s exit from the sector could involve divestitures, closings of sites, job losses, and suitable considerations for publicly held subsidiaries.
The industrial conglomerate said that GE Steam Power will continue to supply turbine islands for the nuclear market and service already built nuclear and coal-fired power plants.
GE senior vice president and GE power portfolio president and CEO Russell Stokes said: “With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory.
“As we pursue this exit from the new build coal power market, we will continue to support our customers, helping them to keep their existing plants running in a cost-effective and efficient way with best-in-class technology and service expertise.”
GE’s steam power business claims to have installed 30% of the steam turbine capacity in the world. Besides, the business has been involved in supplying half of the steam turbines used by nuclear power plants across the world.
It also claims to have delivered 30% of the boilers in the world, while supplying 1,500 steam turbine module retrofits.
Earlier this month, GE won a contract from Tatenergo to deliver power generation equipment for a new generating block at the 2.2GW Zainskaya State District Power Plant (SDPP) in Zainsk, Tatarstan Republic, Russia.
The company also bagged another contract this month, which is for the 6.5GW Hsinta and Taichung combined cycle power plants in Taiwan. GE won the equipment contract in consortium with its local partner CTCI.