GE to Boost Generation Capacity by 6 Percent and Improve Station’s Greenhouse Impact in Australia

31 May 2017

With Australia’s utilities seeking to increase capacity and lower plant carbon footprint through less coal consumption, Engie has selected GE’s Power Services (NYSE: GE) to modernize generation equipment at its 1,056-megawatt (MW) Loy Yang B coal-fired power station in Victoria, Australia. GE will upgrade two Hitachi heavy duty steam turbines, targeting to boost capacity by a combined 84 MW and reducing fuel consumption by approximately 5 percent for each MW generated.

The upgrades at Loy Yang B are part of Engie’s Greenhouse Intensity Improvement Project underway at the power plant, aimed to increase operational flexibility while also decreasing greenhouse intensity.

“This project will help increase the efficiency and overall sustainability at Loy Yang B,” said Anders Maltesen, general manager for the Asia-Pacific region for GE’s Power Services. “The Loy Yang B station project marks the first time globally that GE has been selected to service a heavy-duty Hitachi steam. The project reflects the global energy sector’s recognition of GE’s expanded capabilities to service power generation equipment from other manufacturers following the company’s acquisition of Alstom Power in 2015.”

According to the 2016 National Electricity Forecasting Report from the Australian Energy Market Operator, Australia’s independent energy and power systems operator, consumption from the manufacturing sector is forecast to increase 6.4 percent over the next 20 years and consumption from other business sectors—such as commercial and industrial applications—is forecast to increase by approximately 10.9 percent over the same span of time.

With the generation equipment upgrades from GE, total plant output is expected to increase to 1,140 MW and increases GE’s installed base of power capacity in Australia by more than 1 gigawatt.

The agreement builds on a long-term relationship between the two companies. GE has a strong track record of supporting the availability of Engie’s global power plant fleet, having collaborated on several projects in Australia. For example:

•         GE supplies parts and outage services for the South Australian Pelican Point power station, a two-unit combined-cycle facility powered by two of GE’s 13E2 gas turbines.

•         GE supplies parts and services for the Kwinana combined-cycle power plant, a two-unit Frame 6B-powered facility.

The Loy Yang B power station is in the Latrobe Valley, about 160 kilometers east of Melbourne. GE’s upgrades are expected to be completed throughout 2019 and 2020.