GE's Solution for Carbon Tax, Electricity Prices AND CO2 emissions

Option 1: Generate electricity efficiently, cheaply, and with low CO2 emissions

GE’s Super-Efficient Jenbacher Gas Engines Bring Energy Independence and Economic Opportunities to French Greenhouses

MILAN, ITALY—June 8, 2011—Since the beginning of the year, two of GE’s (NYSE: GE) flexible, high-output and efficient Jenbacher J624 two-stage turbocharged gas engines have enabled French grower Serres Vinet to generate all of the hot water and electricity required for its extensive tomato and lettuce greenhouse operations in Machecoul, in the Loire-Atlantique region. These are the first two-stage turbocharged gas engines in France, and they are the heart of two cogeneration plants powering Serres Vinet’s existing greenhouse operations plus a recent 17-hectare (42-acre) expansion. GE presented the innovative installation this week at the POWER-GEN Europe show in Milan.
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No other gas engine manufacturer currently offers such a super-efficient two-stage turbocharged unit. Each Jenbacher J624 engine offers about 4.4 MW of electrical output and 4,014-kilowatts (kW) of thermal output at 44.4 percent electrical efficiency and 47 percent thermal efficiency. The units at Serres Vinet operate on natural gas and are key to the ability to configure Serres Vinet’s cogeneration plants to achieve an overall energy efficiency of more than 90 percent, with NOx emissions continuously below 350mg/Nm³. GE also has provided the control systems.

Option 2: Buy electricity that is expensive, creates high CO2 emissions, and attracts high carbon tax

(Source: Independent Pricing and Regulatory Tribunal)
Table 1.3 Indicative annual bill for business customers in each standard supply area ($ nominal)

	2010/11 (current)	2011/12	Change
EnergyAustralia	2,006	2,365	359
Integral Energy	1,982	2,289	307
Country Energy	2,917	3,445	528

Note:
Bills exclude GST but include climate change levy. Bills calculated using 10,000 kWh per annum and EnergyAustralia’s General Supply All-time tariff, Integral Energy’s General Supply tariff and Country Energy’s Urban Business tariff (5740). Inflation is 3.3%.

(Electricity at a price of $2,289 for 10,000 kWh is equivalent to $63.60 per GJ of electrical energy.)

Option 3: Buy gas to generate electricity that is cheap, creates low CO2 emissions, and attracts low carbon tax

(Source: Independent Pricing and Regulatory Tribunal)
Table 1 Indicative annual bill for AGL regulated retail customers ($ incl GST)

Type of Customer	2010/11	2011/12	$ Increase
Typical business - 184 GJ per year	3,289	3,350	61

(Gas at the price of $3,350 for 184 GJ is equal to $18.20 per GJ of thermal energy.)

Using gas that costs $18.20 per GJ to generate electricity in one of GE’s Super-Efficient Jenbacher Gas Engines - at 44.4 electrical efficiency - produces electricity for $41.40 per GJ.

This electricity is 1/3 cheaper than paying $2,289 for 10,000 kWh - electricity for $63.60 per GJ.

This electricity creates 60 percent less carbon dioxide emissions.

• (400 kg per MWh instead of 1,000 kg per MWh for coal-fired electricity generation.)

This electricity attracts 60 percent less carbon tax.