May 28 (Bloomberg) -- General Electric Co., the world's biggest maker of power-generation equipment and jet engines, plans to reduce water consumption by one-fifth by 2012 as part of its conservation efforts.

In addition to the first-ever water reduction pledge, Fairfield, Connecticut-based GE also said it intends to have $25 billion in sales of environmentally friendlier products and services by 2010, a 25 percent increase from its projection three years ago.

The goals are part of Chief Executive Officer Jeffrey Immelt's ``ecomagination'' campaign begun in 2005. Sales of equipment and services developed or sold under the campaign last year increased 17 percent to $14 billion from 2006. The number of products offered under the campaign rose to 62, up 38 percent from a year earlier, GE said in the statement.

``Water is the next big environmental issue we need to get our heads around,'' said Lorraine Bolsinger, who heads GE's environmental initiatives.

GE's water reduction goal uses 2006 as a base point. A 20 percent reduction represents 7.4 million cubic meters, or enough to fill more than 3,000 Olympic-sized pools.

The company's water goals initially target 100 sites, including some of its biggest plants such as the jet engine production facilities in Evendale, Ohio, said Bolsinger. Last year, GE cut water use by 2 percent from 37.9 million cubic meters, or 10 billion U.S. gallons, consumed in 2006.

Original Goal

To reduce water consumption, GE will use its own treatment and filtration products that it has sold to ConocoPhillips, DuPont Co. and the Wuxi area of China's Jiangsu Province. The goals were scheduled to be announced today in Beijing, Brussels and Washington.

In 2005, GE set an original goal to increase sales from environmentally friendlier products and services to $20 billion in 2010, from $6 billion in 2004. GE said it raised the bar because it plans to reach the initial goal a year early.

Greenhouse gas emissions were reduced by about 8 percent last year from the 2004 baseline. The reduction has improved energy efficiency, and represent cost savings of about $100 million so far, GE said.

GE shares trading in Germany increased 0.3 percent to the equivalent of $30.48 as of 11:45 a.m. local time. The stock closed at $30.40 in the U.S. yesterday.

To contact the reporter on this story: Rachel Layne in Boston at rlayne@bloomberg.net.

Last Updated: May 28, 2008 05:53 EDT