GE Signs Power-Plant Deal to Meet Alstom Acquisition Promise

  • Pact with PSEG Power boosts HA turbine order book to 35
  • Upgraded station in Connecticut may begin operations in 2019

General Electric Co. won a deal to upgrade a U.S. power plant with its newest gas turbine and equipment from the recently acquired Alstom energy business.

The pact with PSEG Power boosts the order book for the HA turbine to 35, said Joe Mastrangelo, chief executive officer of GE’s gas power systems unit. The agreement, which includes an Alstom-designed steam generator, highlights the complementary products that underpinned GE’s $10.3 billion acquisition, he said.

“We took the GE turbine combined with the Alstom steam technology” to deliver “what will be the highest-efficiency combined-cycle gas turbine plant in the world,” Mastrangelo said in a telephone interview. “That was really the catalyst for us winning this project.”

The HA, a Winnebago-sized behemoth that weighs 660 tons, is critical to GE’s power division and a major part of CEO Jeffrey Immelt’s plan to expand industrial manufacturing while shrinking the company’s lending arm. The new product, introduced last year, has won recent orders in countries such as Pakistan and South Korea.

GE shipped five HA turbines in the first quarter as part of a plan to deliver 24 this year, Mastrangelo said.

GE sought to strengthen its power unit with the purchase of Alstom’s energy business, which closed in November. GE said the deal would enhance its competitiveness by combining its gas turbine expertise with the French company’s steam technology, expanding its plant-equipment offerings.

GE is now offering steam products on about 90 percent of its power-plant project bids, up from 30 percent before the acquisition, Mastrangelo said. “This has really changed our go-to-market strategy.”

Under the latest agreement, GE will supply one HA, a steam turbine and associated equipment to expand the Bridgeport Harbor Generating Station in Connecticut. The upgraded plant, which will be able to supply enough energy to power almost 500,000 homes, is scheduled to begin commercial operations in 2019, GE said.

GE plans to report first-quarter earnings Friday morning.

Before it's here, it's on the Bloomberg Terminal.