GE, Bechtel to Collaborate on New Polygeneration Facility




    Proposed TransCanada Project in Saskatchewan to Feature CO2 Recovery

    ATLANTA & HOUSTON, October 9 /CNW/ - GE Energy and Bechtel Overseas Power
Corp. have signed a project development agreement with TransCanada Corporation
of Calgary to develop the first polygeneration facility in Canada with the
ability to use petroleum coke and incorporate carbon capture and storage.

    The proposed polygeneration facility, located in Belle Plaine,
Saskatchewan, Canada, is expected to use petroleum coke as feedstock to
produce hydrogen, nitrogen, steam and carbon dioxide for fertilizer production
and enhanced oil recovery (EOR), and to generate approximately 300 megawatts
of long-term electricity.

    The facility would use GE Energy's gasification and flexible-fuel
technology to generate power and support local industrial processes. GE's
scope of supply is the gasification island and the power island equipment,
which includes two GE Frame 7FB gas turbines designed to run on syngas with a
high hydrogen content.

    Under the agreement with TransCanada, GE and Bechtel Overseas Power
Corporation of Houston, Texas, have completed the first preliminary
engineering step and will be advancing into the next engineering step in early
2008. If this work indicates that the project is economically viable, the
detailed engineering design (FEED) phase will follow. If the project receives
final approvals for construction, the facility would have an in-service date
targeted for 2013.

    "GE's gasification technology has the capability to capture carbon for
use in processes such as EOR, which will help Saskatchewan meet its greenhouse
gas targets," said John Lavelle, General Manager of GE Energy's gasification
business. "The project plans to sequester over five million metric tons of
carbon dioxide annually to increase local oil production, resulting in a
drastic decrease of carbon emissions. In addition, gasification allows the
project owners to use a byproduct of the refining industry for fuel, instead
of natural gas."

    "Bechtel is pleased to work with GE and TransCanada to develop and
construct this pioneering and innovative project," said Amos Avidan, Senior
Vice President and Manager of Gasification Operations for Bechtel. "We see a
growing interest in polygeneration projects that will convert coal and
petroleum coke to a variety of useful products, including hydrogen, chemicals
and fuels, while capturing CO2 for use in enhanced oil recovery and other
applications."

    About GE Energy

    GE Energy (www.ge.com/energy) is one of the world's leading suppliers of
power generation and energy delivery technologies, with 2006 revenue of $19
billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy
industry including coal, oil, natural gas and nuclear energy; renewable
resources such as water, wind, solar and biogas; and other alternative fuels.
Numerous GE Energy products are certified under ecomagination, GE's
corporate-wide initiative to aggressively bring to market new technologies
that will help customers meet pressing environmental challenges.

    About Bechtel

    Bechtel (www.bechtel.com) is a global engineering, construction, and
project management company with 40,000 employees worldwide and revenues of
$20.5 billion in 2006. Since its first gasification project in 1948, Bechtel
has been a leader in the design, construction, and startup of projects to
convert coal and petroleum coke to electricity and chemicals.




For further information:

For further information: GE Energy Cynthia Coleman, +1-816-591-2113
cynthia.coleman@ge.com or Bechtel Corporation Jonathan Marshall,
+1-415-768-2292 jvmarsha@bechtel.com or Masto Public Relations Ken Darling,
+1-518-786-6488 kenneth.darling@ge.com or Howard Masto, +1-518-786-6488
howard.masto@ge.com

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