Gasification Business Overview

GTC 2006October 2006

Edward LoweGeneral Manager, Gasification

GEEnergy

2 /

Growing Gasification In Multiple Segments

Coal to Liquids (CTL)

Coal toChemicals

RefineryPolygeneration

IGCC/Coal to Power

• Low cost fuels/feedstock

• Reduced emissions

• Fuel diversity

3 /

Recent Successes: North America

North AmericaNorth

America

• Executed License Agreements:

–DKRW, Medicine Bow, Wyoming CTL Project

–Erora/Tenaska, Christian County, IL IGCC

–Synenco Energy, Northern Lights Upgrader, Alberta, Canada

–Pet coke to ammonia, Mosaic off take agreement

• Executed Heads of Agreement with BP for Global Hydrogen to Power Projects. First gasification project proposed in Carson, CA.

4 /

Recent Successes: China

• Signed 4 coal-to-chemical licenses in China-Coal Mine Company: Coal to Methanol-Dalian: Coal to Ammonia-Private Company: Coal to Methanol-Shenmu II: Coal to Methanol

• Successful startup of 3 coal-to-chemical plants in China

-Sinopec Jinling: Coal/pet coke to ammonia-Shenmu: Coal to methanol-Sinopec Nanjing: Coal/pet coke to ammonia

ChinaChina

5 /

• Gasification leader since 1948 with62 facilities operating worldwide

• First coal gasification plant in 1978

• 21 gas turbines operating on synthesis gas, 900,000 operating hours

• IGCC leader: >3 GW with GE technologies

• >6 centuries team gasification experience

GE Gasification & IGCC Experience Leadership

74

Total Plantson All Fuels

Total PlantsOn Solid Fuels

Plants OperatingPlants in Design orUnder Construction

GE’s Gasification Experience~120 Vessels In Operation

24

6 /

Houston, TX – process & product design & IGCC experienceNiskayuna, NY – materials, design, system analysisShanghai, China – materials, chemistry, instrumentation Schenectady, NY/ Salem, VA – controls, simulationBangalore, India – computational, experimentalGreenville, SC – design, adv materials & manufacturingIrvine, CA – gasification modeling & experimental expertsWarsaw, Poland – reliability and maintenance analysis

… to lower CAPEX, plus increase efficiency & RAM

Utilizing a Diverse Global Team …300 Technologists

IrvineIrvine HoustonHoustonChinaChina IndiaIndiaNiskayunaNiskayuna PolandPoland

7 /

staffin

g

Investing for Success

04

Step Increases in Product

Development

‘05 ‘06

$ Y

Avg/yr ‘01–‘04

10*$Y

20*$Y

‘07

30*$Y(est.)

Jun- Dec-05

Dec-06

0

Advanced Technologies

Gasification Technology

Power Generation Technology

0

50

100

150

200

250

Hea

dcou

nt

300

8 /

IGCC Launch Plants Status

Columbus

Cincinnati

Cleveland

OHIO

AEP IGCC Project

Meigs County,Ohio

Indianapolis

Fort WayneGary

INDIANA

Duke IGCC Project• 03/06 announced FEED study

• 1Q07 FEED to be complete

• 2011 expected commercial start up*

Edwardsport,Indiana

*pending project approval

WEST VIRGINIA

AEP IGCC Project• 08/06 announced project

• 12/06 FEED to be completed

• 2011 expected commercial start up

• 9/05 announced FEED study

• 4Q06 FEED to be complete

• 2012 expected commercial start up

Mason County,West Virginia

9 /

GE & Bechtel Alliance IGCC Reference PlantReference plant design• Nominal 630MW net plant output

• 7FB gas turbine combined cycle system

• Fuel flexibility

– Wide range of bituminous coals

– Coal/coke blends

Reference plant status• RSC and GT preliminary designs

complete Dec ‘06

• ASU integration & plant performance models complete

• Layout being optimized, MTOsunderway

• Cost estimates being finalized

• Reference plant design 90% complete

10 /

Reference Plant … Enhanced Coal Envelope Program Initiated

Leveraging from initial Reference Plant product

– Gasification & heat recovery technology

– Process & power island designs– Integrated plant models & cycle

optimization– RAM modeling

Economically optimizing for PRBWorking with potential launch customer

From Energy Information Administration, Quarterly Coal Report, October 2006

11/

Hydrogen Power Projects• Utilize advantaged fossil fuels (coal, petcoke)• Produce high H2 fuel gas to burn in gas

turbines• Capture CO2 (~90%)• Utilize CO2 for Enhanced Oil Recovery (EOR)• Future storage in Saline Aquifers

Value Through Collaboration• Combine technology company with an

operations company• Leaders in gasification, power and CCS• 10 – 15 projects over next decade• Carson, CA is first gasification project

GE and BP Signed HOA To Accelerate Use of Low Carbon Power Generation

Carson Hydrogen Power Project

12 /

GE Growing Across the Gasification Segments

Power Chemicals CTL Refining

Accelerating technology development

Partnering with industry leaders

Delivering commercial solutions

Gasification Business Overview

GTC 2006October 2006

Edward LoweGeneral Manager, Gasification

GEEnergy

Gasification Business OverviewGrowing Gasification In Multiple SegmentsRecent Successes: North AmericaRecent Successes: ChinaGE Gasification & IGCC Experience LeadershipUtilizing a Diverse Global Team … �300 TechnologistsIGCC Launch Plants StatusGE & Bechtel Alliance IGCC Reference PlantReference Plant … Enhanced Coal Envelope Program InitiatedGE and BP Signed HOA To Accelerate Use of Low Carbon Power GenerationGE Growing Across the Gasification SegmentsGasification Business Overview