GE jumps into Wind Power

by asdf Mon Jul 18th, 2005 at 12:27:11 PM EST

The wind power industry has had a tough history, with many business and technical failures. Extracting electrical power from the wind requires a tough combination of technology, development capital, and access to the power market--all while operating under sometimes-ambivalent government regulation. But the wind industry may be finally undergoing a real step towards maturity as large energy companies reconsider their involvement.

According to the latest issue of the IEEE Spectrum magazine, "After largely ignoring alternative energy for most of its existence, GE has jumped in headfirst.

"Over the past five years, the company, based in Fairfield, Conn., has begun manufacturing wind turbines and photovoltaics, invested in hydrogen fuel cells, and become a leader in the development of gasification equipment that could double the efficiency of coal-fired power plants and even capture their greenhouse gases. Pulling all those strands together in a high-profile speech delivered in Washington, D.C., on 9 May, GE's chief executive, Jeffrey R. Immelt, unfurled what the company is calling its "ecomagination" initiative. Immelt described it as "a growth strategy, driven by our belief that applying technology to solving problems is good business....We are launching ecomagination not because it is trendy or moral but because it will accelerate our growth and make us more competitive."

As a global industrial powerhouse, GE brings to the wind power market a strong combination of technical expertise, capital, access to existing power supply markets, and government access. This could lead to a considerable realignment in the industry, as smaller players consolidate and as political opposition is overcome by the weight of the big players.

"GE is leaning particularly hard into the wind market, the strongest of its clean energy businesses, and it is redrawing the industry in the process. With its financial might, power engineering connections, and global reach, the company has set off a scramble for market share in the consolidating wind industry."

http://www.spectrum.ieee.org/WEBONLY/publicfeature/jul05/0705ge.html

GE jumps into Wind Power | 9 comments (9 topical, 0 editorial, 0 hidden)

Which Shows There's Profit To Be Made (none / 1)

Much was made last week in the U.S. financial media about GE's strong move into the sector. See, for example, Reuters and Bloomberg. Revenue in the segment tripled to some $427 million in the second quarter of 2005, and the company appears to have signed service agreements for more than $1 billion in China (though prospective contracts such as these should be regarded with some skepticism, as they frequently don't pan out). But if the company didn't believe that there is long-term profitability in the sector, it wouldn't be making such a strong move.

If Jérôme has an opportunity to comment on this, his insights would probably be quite illuminating, since he deals directly with wind power financing.

by The Maven on Mon Jul 18th, 2005 at 12:50:57 PM EST

Re: GE jumps into Wind Power (none / 0)

I think so far, most of the technology in GE turbines is ex Enron Wind technology.

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Mon Jul 18th, 2005 at 03:36:47 PM EST

Re: GE jumps into Wind Power (none / 1)

which itself comes from Zond and Tacke, two German manufacturers.

I will write more on the topic when it is easier for me to do so.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Jul 18th, 2005 at 04:05:38 PM EST
[ Parent ]

Re: GE jumps into Wind Power (none / 0)

Wasn't Zond a US manufacturer, which earlier bought up Kenetech, which in turn earlier bought up US Windpower?

Anyway, to my knowledge, most of Enron Wind's technological know-how (except what was stolen with the help of the NSA from Enercon :-) ) came from Tacke, and most of the development (not just the construction) was done in Germany and Spain, so I get your point. (GE even erected the 3.6 MW prototype in Spain.)

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Tue Jul 19th, 2005 at 02:59:56 AM EST
[ Parent ]

Re: GE jumps into Wind Power (none / 0)

Regarding Kenetech (the Enron forerunner that originally went to court with Enron), I just found these interesting tidbits in the Google cache, written by an American working in the wind business:

Back in about 1987 a company was formed named Kenetech. My understanding was that a portion of the companies money came from the H.J Heinz Company. It was co-formed by a nephew of George H.W. Bush. Yes, the ex-president. That individual was Alexander (Hap) Ellis. Kenetech was the first wind energy company to be listed on the New York stock exchange, I believe under the symbol KWIND. Kenetech bought or took over control of U.S. Windpower. Not long thereafter Kenetech designed a new 750 kW turbine. They sold dozens of them and were pushing to aggressively sell more. As it turns out they applied for U.S.patents for their variable speed and pitch controls.
Enercon, a German company had perfected the design with their direct drive permanent magnet variable pitch system. A damn fine design by the way. Enercon held the European patents for their design but as I understand it did not file in the United States. Kenetech and Enercon got into a major legal battle over the patent issue with Kenetech winning. Therefore, no Enercon turbines in the United States. Well, Kenetech was a shoot from the hip company. I had met Hap Ellis on several occasions. He would show up at meetings and conferences at the drop of a hat and then disappear just as quickly. I personally referred to him as the "Vapor man". How could he do so much traveling and only be there for a few hours? I was later told that he had access to the H.J. Heinz corporate jet, as his uncle was George H.W. Bush.
Kenetech's stock started at $10.00 per share and climbed to about $30.00 per share. About that time the Kenetech turbines began to fly apart. They had major design problems and ultimately the company went under. Last price quote was about $0.15 cents per share.

(BTW, Enercon was developing its own design for four years already when Kenetech applied for the US patent in 1991.)

Later:

It did not take Enron very long before they realized that the Zond turbine was not going to make the reliability and performance requirements. Enron went shopping and purchased Talke Wind[Sic! Tacke Wind] out of Germany. At that point Enron had a good turbine and was able to market them successfully.

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Tue Jul 19th, 2005 at 03:17:35 AM EST
[ Parent ]

Wind-Nuclear Snergy (none / 0)

The problem with wind energy is that you often either don't have enough or you have too much and have to close your generators for safety reason. To fill the gap you need power stations that can come on line quickly.

Nuclear and gas are the current obvious choices, GE of couse mak both and the "gasified coal" option is their scheme to tie up the market for complete solutions depending on the available fossil fuels.

One of the most efficient methods is a home based combined heat and power plant allied to a domestic renewable like photovoltaic roof tiles or a wind generator depending on the location and type of property. To make the systems worthwhile however there needs to be a system for the consumer to sell excess power to the electricity company, something that needs regulations to ensure it happens.

by Londonbear on Tue Jul 19th, 2005 at 04:35:42 AM EST

Re: Wind-Nuclear Snergy (none / 0)

No, you don't need generators that can come on quickly (tough this is a favourite spin from traditional producers): one turbine's power is rather small, while a lot of turbines' power is much more even (typical variation is that with a period of hours), and today it can be predicted with quite some certainty from the viewpoint of planning output. (You can check for yourself on the example of monitored Spanish wind power: go here, and if the page reloads endlessly - as it does on my Firefox now for some reason -, click "Operation of the Power System" on the left, then "Tracking of electricity demand" at top, then "Wind power generation" in the box at right.) What you still need is variable power from other sources to make up for the difference between the planned total output (planned to roughly match predicted demand) and wind power.

A recent study by Elkraft System concluded that up to 50% of wind power can be integrated into the system both technologically and economically. I emphasize, Elkraft is neither a green advocacy group, nor wind industry lobbyists, not even independent scientists with no money to risk themselves - it is one of the two electricity system operators in Denmark.

In their case, hydropower (in neighbouring Sweden and Norway) is the obvious choice (and gas).

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Tue Jul 19th, 2005 at 07:26:16 AM EST
[ Parent ]

Re: Wind-Nuclear Snergy (none / 0)

wind intermittence is NOT a problem until wind reaches 20% of the network capacity,as shown in Denmark and northern Germany. I will write a longer diary about this later, but this is NOT a real problem for now, and people raising this argument ALWAYS have ulterior motives, usually pro coal, pro nuc
er or just NIMBY.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Tue Jul 19th, 2005 at 07:43:47 AM EST
[ Parent ]

Re: Wind-Nuclear Snergy (none / 0)

people raising this argument ALWAYS have ulterior motives, usually pro coal, pro nuc [my emphasis]

Eh, the Country Guardians...

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Tue Jul 19th, 2005 at 08:49:38 AM EST
[ Parent ]

GE jumps into Wind Power | 9 comments (9 topical, 0 editorial, 0 hidden)

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GE jumps into Wind Power

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