GE to double renewable investments to $4 billion

London, 31 May: GE Energy Financial Services is to double its renewable energy investments to $4 billion by 2010, kicking off the effort by purchasing a Canadian hydro plant and stakes in two US wind farms.

The Stamford, Connecticut subsidiary of General Electric said on 24 May that its investments in wind, solar, biomass and geothermal energy represent its fastest growing business area. Its holdings have increased to $2 billion from $630 million in 2004.

In the wind deal, GE will invest $180 million to acquire 50% equity stakes in two wind farms in Texas, in partnership with a subsidiary of US bank Wachovia. They will buy the 241MW Sweetwater 4 project from Babcock & Brown and Catamount Energy. The partners will also acquire the 209MW Roscoe project from Airtricity. Both wind farms will begin operating this year, bringing GE's wind equity holdings up to 1,900MW worldwide.

In British Columbia, GE will invest C$112 million ($104 million) for a 49% share of a 196MW hydroelectric project being developed by Plutonic Power. This will be a 'run of the river' project that does not dam the river. The BC Hydro & Power Authority will buy the plant's output for 35 years.

GE will also make available a 3.5-year credit facility of C$30 million, allowing Plutonic to expand a transmission line it will build, to connect three other proposed hydro plants to the grid.

In another venture, GE and BP agreed to develop five plants to gassify coal or petroleum coke to produce hydrogen for power generation. The 500MW plants will capture carbon dioxide and inject it underground, possibly for enhanced oil recovery. Each plant will capture 4 million ton of carbon dioxide annually.

Finally, GE and US power plant developer AES finalised a joint venture that will develop greenhouse gas reduction projects in the US. Focusing on methane, the companies aim to cut 10 million metric tonnes annually by 2010.