Commercial Experience in China…GE’s Gasification Technology

Qianlin Zhuang, Ph.D. EngCommercialization Manager, China

GEEnergy

GTC 2006October 2006

2

Energy Status in China

Economy heavily dependent on coal use

Crude supply increasingly dependent on import

Natural gas demand outpacing supply, though with limited supply

11th Five Year Plan…Coal remains prime energy source …63%1.6X increase in installed power generation capacity by 2010 … >30% of world’s additions

“Cleaner coal” identified as priorityIGCC “key technology” in industry guidelines

3

Ecomagination Launch in China

4

GE Energy’s Commitment to Sustainable Growth in China

'04

1,020

'05 '07E

1,4501,650

'06E

1,870

($MM) $700$520

$325

$850Procurement

'04 '05 '07E'06E

Employees

5

Expanding Local Expertise

Gas Turbine Services

Hydro

Shenyang

Gas Turbine Components & Wind

Qinhuangdao

Controls Solutions

Shanghai Hangzhou

6

Better Serve the Needs of Licensees• Trouble shooting operation issues• Plant optimization/parts coordination• Consulting on business expansion• Timely response to customer’s call

Commitment to ChinaGE Energy’s Gasification Business

Increasing Resources in China• Licensing Team• CTC – China Technology Center

Technical Service Team• GRC – Global Research Center Material

& Coal Analytical Team

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FEED PREP GASIFICATION GAS CLEANUP END PRODUCTS

Feedstock:• Coal• Heavy Oil• Pet Coke• Asphalt • Orimulsion• Natural Gas• Refinery

Wastes

Alternatives:• Hydrogen• Ammonia• Chemicals• Methanol• Fischer-

Tropsch Liquids(zero-sulfur diesel)

Syngas

Electricity

Combined CyclePower Block

Oxygen

Features and Benefits: simple, reliable and economically viable

• Extensive Commercial Experience of Solids Gasification

• Convert low value feedstock to value added products

• Feedstock and Product Flexibility

• High Domestic Content• Competitive CapEx• Short Project Cycle

Particulate Removal

Mercury Removal

Sulfur Removal

Useful byproduct:Vitrified Slag

GE’s Gasification Technology …Fits Needs in China

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Total Licenses: 29Solids Feed 19Liquid Feed 8Gas Feed 2

Recent Orders of GE’s Gasification Licenses

WisonCoal to CO/MeOH1Q 07

Sinopec QiluCoal to Oxochem3Q 07

SCCC IIICoal to CO/MeOH3Q 07

Coal CompanyCoal to MeOH3Q 07

Shenmu IICoal to MeOH4Q 07

DalianCoal to Ammonia4Q 08

Coal CompanyCoal to MeOH1Q 08

Private CompanyCoal to MeOH3Q 08

ProjectCoal to ProductCOD

Process Waste Water

Syngas Scrubbing

Sour Shift

Heat Recovery

System

Gas Cleaning U

pSulfur

Recovery

Methanol

Synthesize

Methanol

Upgrading

Air

LP Nitrogen

Oxygen

Sulfur

Methanol

Process Water

Coal

Gasification Waste WaterFine Slag

Discharge GasRecycle

Gas

Coarse Slag

GE Gasification Coal to Methanol Process Drawing

Air Separation

Plant

GE

Gasification

Black Water

Handing

10

Sinopec Nanjing

Sinopec Jinling Coal/Pet-coke Blend for Ammonia/H2

Coal/Pet-coke to Ammonia

Coal to MethanolShenmu Oct 05Jan. 2006

Sept. 2005

Project Feedstock - Product Startup

• 18 ~ 24 months from license signing– to mechanical completion

• 24 ~ 30 months from license signing– to start-up

• Established Eng Delivery • Dedicated Start-up Support • Experienced Engineering Firm• Management Commitment

of Owner

Recent Start-ups in China

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Licensee: Sinopec Jinling Chemical Industry CompanyLocation: Nanjing Jinling, Jiangsu Province, ChinaLicensed in: 2003 Startup: 2005 Feedstock: Shenfu Coal/Pet-cokeFeedrate: 2,200 TPDOperation Pressure: 40 BarCOD: Dec. 2005Engineering Contractor : China Tianchen Chemical Engineering Corp.

GE Gasification

Gas Cleanup

Oxygen

Coal

Sulfur

End Products

Ammonia

Hydrogen

for refinery hydrogen treating

AmmoniaSynthesis

Slag

2200 MT/D Coal/Coke PSA

50%

50%

Sinopec Jinling Plant

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Licensee:Shanxi Shenmu Chemical Industrial Co.,LtdLocation: Shenmu, Shanxi Province, ChinaLicensed in: 2003Startup: 2005Coal Source: local coal in ShaanxiFeed Rate: 1000 TPDOperation Pressure: 40 BarCOD: Dec 2005Engineering Contractor : China Tianchen Chemical Engineering Corp.Phase II: under engineering stage

GE Gasification

Gas Cleanup

Oxygen

Coal

Sulfur

CH3OHSynthesis

Slag

1000 MT/D Coal

End Products

Methanol

Shenmu Chemical Plant

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Licensee: Weihe Chemical Fertilizer PlantLocation:Weinan, ShaanXi Province, ChinaLicensed in: 1992 Startup: 1996Feedstock: Huangling, Huating CoalFeedrate: 1,500 TPDOperation Pressure: 65 BarGasifier Size: 450 ft3

Engineering Contractor: Ube Industries (Japan)

Phase II: under start-up

GE Gasification

Gas Cleanup

Oxygen

Coal

Sulfur

Ammonia CH3OH

Synthesis

End Products

Ammonia

Methanol

DME

Nitrogen for NH3

1,500 MT/D

Slag

Weihe Chemical Fertilizer Plant

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Licensee: Sinopec, Nanjing Chemical Industry GroupLocation: Nanjing, Jiangsu Province, ChinaLicensed in: 2003Startup: 2005 Feedstock: Shenfu Coal/Pet-cokeFeedrate: 1,500 TPDOperation Pressure: 87 BarGasifier Size: 900 ft3Engineering Contractor : Sinopec Nanjing Design Institute

GE Gasification

Gas Cleanup

Oxygen

Coal + Coke

Sulfur

AmmoniaSynthesis

Nitrogen

Slag

1500 MT/D Coal/Coke

End Products

Ammonia

Sinopec Nanjing Chemical Industries Co.

150%

20%

40%

60%

80%

100%

GE Technologyin China Four Coal Plants

Availability = (1-(unplanned outage+planned outage) /8760)*100%

Reliability = (1-(unplanned outage) /8760)*100%

Availability & Reliability – Solids Gasification in China

Availability

0%

20%

40%

60%

80%

100%

Reliability2003 2004 2005

90%

90%

1 2 3 4 1 2 3 4 1 2 3 4

2003 2004 2005

1 2 3 4 1 2 3 4 1 2 3 4

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Experience with Diversified Local CoalsPlant

Coal Name

A

Coal Blend

B

Shenfu Coal

C

Huating Coal

D

Yima Coal

E

Hegang Coal

C% 75.77 74.54 66.02 61.80 63.54

H% 5.20 4.54 3.86 3.40 4.37

N% 1.19 0.92 0.71 0.80 0.68

S% 2.66 0.43 1.13 1.58 0.34

O% 7.61 11.65 14.61 12.70 6.57

Ash% 7.57 7.92 13.67 19.40 24.50

GHV, MJ/kg 32.29 28.09 25.58 23.06 25.03

AFT, Deg. C 1230 1250 1280 1330 1450 *

*with fluxant addition

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For Sustainable Growth …

• Commercially Proven Technology

• Feedstock Flexibility

• Demonstrating Effective Sparing while Meeting RAM

• Competitive Capex with 90+% Local Equipments Content

• Established Relationship with Local Engineering Firms and Venders

• Short Project Cycle

• Local Licensing Team

• Understand the Mindset

• Deliver to Customer Needs

• Local Technical Support

• Local Product Supply

• Business Commitment to Local Market

• Cross Functional Leverage

GE’s Gasification Technology Demonstrates its Added Value As a Viable Solution in China

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Gasification at GE EnergyContact Information:Beijing Office: Mr. Hanbing Ding, Licensing Manager

GE Energy #7 Guanghua Rd, Chaoyang DistrictBeijing, 100004, China010- 6561-1166 Ext 520+86-10-13910509840 (mobile)010-6561-1537 (Fax)Email: hanbing.ding@ge.com

Shanghai Office: Mr. Frank Jiang, Licensing ManagerGE Energy1266 Nanjing Road WestShanghai, 200040+86-21-6288-1088 ex123; +86-21-6288-0443+86-21-13501667742 (mobile)Email: Frank.jiang@ge.com

Houston Office: Qianlin Zhuang, Ph.D. Eng., Commercialization Manager1333 West Loop South, Houston, TX 77027713-803-0591; 713-803-0904 (fax)Email: qianlin.zhuang@ge.com

Commercial Experience in China…GE’s Gasification Technology

Qianlin Zhuang, Ph.D. EngCommercialization Manager, China

GEEnergy

GTC 2006October 2006