President and CEO of GE Gas Power Systems, Joe Mastrangelo has been outlining how the company’s acquisition of Doosan’s Heat Recovery Steam Generator (HRSG) unit will benefit the company’s overall gas-fired power generation offering.
GE Power finalised the $250m deal on Tuesday and say the technology will meet growing demand for its combined-cycle power plant solutions, which utilise HRSG technology.
“As we expand demand for our HA gas turbines and efficient combined-cycle solutions, a critical part of having the best integrated offering includes Heat Recovery Steam Generators (HRSGs) that enable better plant performance and cost,” Mastrangelo said. “This acquisition brings expanded leadership in engineering, equipment and infrastructure to our portfolio and positions us to be a global leader in HRSG.”
“This allows us to double the output of the product into our business,” he added.
South Korea-based Doosan Engineering & Construction HRSG has been a supplier to both GE and Alstom and has a long history as an Alstom licensee. Doosan Engineering & Construction HSRG will now be integrated into GE Power’s Gas Power Systems business, which already includes Alstom’s legacy HRSG business.
With the announcement, Korean Doosan E&C HRSG employees and the facility in Changwon, Korea have been transferred to GE. Transactions in Vietnam are expected to close by the first quarter 2017 pending regulatory approvals.
New equipment orders in GE’s power division, excluding Alstom, fell 11 percent in the second quarter.
But since the Alstom deal closed last November, GE has added 30 orders for heat recovery steam generators to its backlog, Mastrangelo said, noting that the company typically sold 14 per year before the acquisition.
The Alstom deal increased revenue from each massive gas power plant GE sells. Before the purchase, GE’s sales totalled about $175 per kilowatt of capacity in a typical large plant. Now, the figure is more than $300 per kilowatt.
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