GE and Harbin Power form joint wind power venture

• 13 years ago (2010-09-28)
• Junior Isles

Asia 859 Europe 1068 North America 1004 Renewables 757

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General Electric (GE), the world’s second biggest producer of wind turbines, has formed a joint venture with China’s Harbin Power Equipment Co. to make and supply equipment to China.

The new wind power venture joins GE, whose power generation equipment supplies a third of the world’s electricity, with Harbin Power’s subsidiary Harbin Electric Machinery Co. The $13 billion wind market will expand six fold to 150 GW by 2020, the Fairfield, Connecticut-based GE said in a statement.

The announcement of this project expands Harbin Power’s relationship with GE. Harbin Power has teamed with the US company to provide heavy-duty gas turbines since 2004, Gong Jing Kun, chairman of Harbin Electric, said in the statement.

GE Chief Executive Officer Jeffrey Immelt has pointed to China as one country with a consistent energy policy that allows rapid clean-energy development. This venture therefore represents a step forward in the company’s aim of expanding partnerships in China in areas such as aviation, health care and energy.

The venture will make equipment for projects that include onshore and offshore developments using direct-drive, or gearless, technology - just as GE has been doing in the European market.

“China has been growing exceptionally fast,” said Victor Abate, who oversees renewable-energy businesses at GE Energy. “In a $13 billion market, this really gives us a partner to become one of the premier players.”
“There are several formidable Chinese players now and this positions us well to be one of the top tier,” he said

China will own 51 per cent of the venture valued at $27.8 million, and GE will own 49 per cent valued at $26.8 million, according to a statement filed with the Hong Kong stock exchange today.