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Press Release

Pakistan's First Sugarcane Biogas Plant Powered by GE Energy's Jenbacher Gas Engines

July 31, 2008

Project Helps Reduce Regional Energy Shortage and Use of Fossil Fuels

JENBACH, Austria--31 July 2008-- Pakistan's first renewable energy project to use sugarcane-waste biogas created from the production of ethanol recently began supporting the national grid. The plant is powered by eight ofGE Energy's ecomaginationTM-certified Jenbacher biogas engines.

The commercial start-up of sugarcane milling company Shakarganj Mills Ltd.'s new biogas power plant in Jhang, Pakistan comes as the country is working to overcome its current 3,500-MW energy shortage. The new plant will generate enough power to support more than 50,000 homes in Pakistan.

The new biogas plant also is providing a new reliable, on-site source of power to help the mill and other industrial operations meet production requirements and remain competitive.

The biogas used to fuel the Jenbacher gas engines is extracted from spent wash --- a residual of Shakarganj Mills' ethanol production operation that uses sugarcane molasses as a raw material.

As a renewable energy project, the plant is eligible for carbon credits because it enhances energy efficiency at the mill and displaces the national grid's energy generated from fossil fuels. By using the biogas instead of fossil fuels for power generation, the plant is expected to produce approximately 20,000 tons of certified emissions reductions (CERs) annually under the Kyoto Protocol. The expected income from these CERs was instrumental in the customer's financial decision making process. The project will be registered with the UNFCCC by Carbon Services Pakistan and First Climate AG.

"The project is Pakistan's first sugarcane biogas power plant," said Mohammad Asghar Qureshi, Managing Director and Kashif Raza Kazmi, General Manager (Project) of Shakarganj Mills Ltd. "The plant is seen as a successful demonstration project for the region. With 225 million liters of ethyl alcohol produced annually in Pakistan, we expect many other distillery companies to install similar plants to support the energy needs of the national grid."

GE supplied Shakarganj Mills Ltd. with eight JGS 320 GS. B/L Jenbacher units for a cogeneration plant, designed to support the mill's on-site power and heating requirements. Electricity from the 8-MW plant also is being delivered to the national grid through a 22-year power purchase agreement with the local grid operator. The estimated 8 MW of heat from the engines' exhaust gas and jacket water is used to support the company's distillery process.

"GE's Jenbacher gas engines are known for their reliability, durability and ability to operate on a variety of different fuels, making them a popular on-site power solution for Pakistan's industrial sector," said Prady Iyyanki, CEO of GE's Jenbacher gas engine business. "The Shakarganj Mills project underscores Jenbacher engines' fuel flexibility that will be needed to help address the country's serious energy challenges."

The use of the mill's waste biomass as a "free" and available source of energy to generate power and heat helps reduce the facility's overall operational costs. In addition, the Jenbacher engines' reliability further enhances overall plant efficiency to make the project more profitable for the operator.

In addition to the gas engines, GE also provided the gas train, biogas compressor and biogas cooler for the gas dehumidification process.

GE's Jenbacher gas engine local distributor M/s. Orient Energy Systems provided the remaining auxiliary equipment including the cooling tower, pumps, ventilation systems (including fans), and hot water-fired chiller for cooling the biogas. The company also provided heat recovery from jacket water system, exhaust, local installation, commissioning and overall project consulting services. Orient Energy Systems also is providing operation and maintenance support for the plant, while Shakarganj Mills also installed a hydrogen sulfide (H2S) removal system.

About Orient Energy Systems

Since 1996 Orient Energy System is in the energy business with business operation in Pakistan, Bangladesh and Dubai. In Pakistan, the company has its head office in Karachi and branch offices in Lahore, Multan, Islamabad and Faisalabad.

Orient Energy System is one of Pakistan's leading energy solution providers, providing its customers turn key solutions including detailed engineering, heat recovery systems, equipment supply and execution of projects up to commissioning.

About Jenbacher Gas Engines by GE Energy

GE Energy's Jenbacher gas engine business, based in Jenbach, Austria, is a leading manufacturer of gas-fueled reciprocating engines, packaged generator sets and cogeneration systems for power generation.

Jenbacher engines cover an output range of 0.25 to 3 MW and operate on natural gas or a variety of specialty fuels, including flare gas and coal mine gas or alternative fuels like biogas, landfill gas, wood gas, sewage gas and industrial waste gas. Patented combustion systems coupled with advanced engine and plant management systems enable customers to meet stringent international emission standards while offering high levels of efficiency, durability and reliability.

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 2007 revenue of $22 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. GE's Jenbacher biogas, landfill gas and coal mine methane engines have received ecomagination certification, underscoring the environmental and economic benefits offered from the utilization of generating energy from high methane content waste streams.

About GE

GE is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com. GE is Imagination at Work.

Tom Murnane
Soteryx Corporation
[email protected]
+1 518 886 1076

Ken Darling
Masto Public Relations
[email protected]
1-518-786-6488

Martina Streiter
GE Gas Engines
[email protected]
+43-5244-600-2470


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