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GE's H System Completes Successful Testing at Baglan Bay; Reaches 530 Megawatts at 44 Degrees F During Test Runs

June 16, 2003

GE's H System Completes Successful Testing at Baglan Bay; Reaches 530 Megawatts at 44 Degrees F During Test Runs

ATLANTA--(BUSINESS WIRE)--June 16, 2003--

Extensive testing of GE's next-generation gas turbine technology, the H System(TM), has been successfully completed at the Baglan Bay Power Station near Cardiff, South Wales in the U.K., GE reported today at the ASME/IGTI Turbo Expo. Following a planned outage to change out the instrumented components, the system will be restarted for a commercial demonstration period beginning in September. The world's largest and most powerful single-shaft combined-cycle system, the H System is designed with the capability to achieve 60% thermal efficiency, a major milestone for the global power industry. In combined-cycle technology, the exhaust heat from the gas turbine is used to produce steam to drive a steam turbine which generates additional power, thus increasing fuel efficiency. The H System features a closed-loop steam cooling system, which permits the higher firing temperatures required for increased efficiency while retaining combustion temperatures at levels consistent with low emissions. Burning natural gas, one of the cleanest fossil fuel options, the H System also meets stringent environmental requirements. A 50-hertz, 109H version of the H System was shipped to Baglan Bay in December 2000 and a comprehensive series of field tests to validate the technology began in November 2002. The unit has been run at a variety of operating points including full baseload conditions, and has generated output up to 530 megawatts at 44(degrees) F for the U.K. national grid. The 109H system was introduced at a rating of 480 megawatts operating on natural gas at ISO conditions, or enough power for half a million homes.

The tests, involving more than 7,000 sensors placed on the equipment, have validated GE's innovative steam-cooled technology for the H System and have successfully demonstrated the overall plant design. Extensive testing also has validated more than 100 critical-to-quality characteristics. We are very pleased with the results of the field tests, said Mark Little, vice president, GE Power Systems - Energy Products. Our ongoing analysis of test data is correlating well with pretest engineering predictions.

Along with fuel economy and environmental performance, another key feature of the H System is greater power density. Compared to F technology plants, with the H System you can install about 45% more megawatt capacity per square foot, said Little. This provides significant value to customers when space is at a premium. Built by GE on land leased from BP, the Baglan Bay Power Station also features a 33-megawatt combined heat and power (CHP) plant based on a GE LM2500 gas turbine. The power complex will provide electricity and steam to the adjacent Baglan Energy Park and BP Chemical's Baglan isopropanol plant, with the remaining electricity supplied to the national grid. The power station is being operated by GE's European Operations & Maintenance group. As the demonstration site for the world's most advanced gas turbine combined-cycle technology, Baglan Bay is expected to serve as a global showcase for clean and efficient power generation. In parallel with the activities at Baglan Bay, a 60-hertz version of the H System has been successfully tested at full-speed, no-load conditions at GE's Greenville, SC gas turbine manufacturing facility. GE expects to begin offering the H System as a commercial product beginning in the last quarter of 2003.

Future shipments for the H System will be covered under a previously announced agreement signed by GE and Toshiba in 1998. Under this agreement, GE has H System integration and performance responsibility. GE will also design and manufacture the H gas turbines and supply the integrated systems controls for the power train. Toshiba will manufacture the GE-designed compressors, along with Toshiba-designed generators and steam turbines. The company currently has a confirmed order from the Tokyo Electric Power Company (TEPCO) to supply three 109H systems for TEPCO's Futtsu Thermal Power Station Group 4 project in Japan, with each system including an MS9001H gas turbine, a steam turbine and a generator. The combined output of the three systems will be 1,520 megawatts.

About GE Power Systems

GE Power Systems (www.gepower.com) is one of the world's leading suppliers of power generation technology, energy services and management systems with 2002 revenues of nearly $23 billion. Based in Atlanta, GE Power Systems provides equipment, service and management solutions across the power generation, oil and gas, distributed power and energy rental industries.

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