GE expands renewable energy business portfolio to accelerate growth
GE has announced that it intends to intensify its focus on the growing renewable energy market by consolidating all of the company's renewable and grid assets into a single, simplified Renewable Energy business.
Global demand for renewable power generation and the associated grid integration continues to increase globally; the latest report from the International Energy Agency* showed that renewable capacity additions of 178 gigawatts (GW) accounted for more than two-thirds of global net electricity capacity growth in 2017. The proposed moves announced today are part of a broader effort on the part of GE to position the company to meet the evolving needs of the power market, including the growth of renewable energy. These moves include:
Moving GE's grid solutions and hybrid renewables (including solar and storage systems) technologies into the GE Renewable Energy Business, complementing its existing onshore wind, offshore wind, LM Wind Power, and hydro offerings.
Streamlining its Onshore Wind structure, eliminating its headquarters layer and elevating its current regional teams—Americas, Europe/Africa, MENAT and APAC — to improve competitiveness, speed, customer focus, and local execution in the Onshore Wind business.
The proposed moves will enable GE Renewable Energy to drive more local and integrated solutions, simplify its structure, and improve performance. The business will be capable of supporting customers from project development, to equipment and services, to full turnkey solutions. It will have the most diverse and broadest renewable portfolios in the industry, enabling customers to bring green electrons to the grid or to power their operations.
GE Chairman and CEO H. Lawrence Culp, Jr., said, "This strategic realignment positions GE to lead in the fast-growing renewable energy market. This move will help our Renewable Energy teams to better support their customers in leading the energy transition by simplifying the way they can access innovative products, integrated solutions, and services that reflect the evolution of the clean energy marketplace."
GE Renewable Energy CEO Jerome Pecresse said, "With the unique diversity and scale of this portfolio and the combination of expertise, technology, and local reach, we will create enhanced value for all our customers seeking to power the world with affordable, reliable green electrons. Our team is excited by the possibilities this new structure creates to help us lead the energy transition for GE."
The expanded Renewable Energy is part of GE's energy related portfolio, which also includes the newly created Gas Power business and GE's Power portfolio which operates Steam, Nuclear, and Power Conversion.
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.