General Electric Company (NYSE: GE) is looking ahead to announce its deal to establish its latest gas turbine and related equipment to upgrade a Connecticut power plant. GE’s deal with PSEG Power will enable the firm to have a total backlog of 35 HA turbines, which secures the future of the company further.
After the upgrades, the Bridgeport Harbor Generating Station will have the capacity to power over 500,000 households. In addition, these upgrades are anticipated to be accomplished by fiscal year 2019. After the upgrades are completed, it will start its commercial operations.
According to the CEO of the gas power system unit of General Electric Company Mr. Joe Mastrangelo, “We took the GE turbine combined with the Alstom steam technology, combined the two and are delivering what will be the highest-efficiency combined-cycle gas turbine plant in the world,”
“That was really the catalyst for us winning this project” he further stated in an interview.
This present move will also support the long term objective of General Electric in order to boost the company’s industrial-based operations, wherein GE sees significant future potential. Since General Electric’s deal with Alstom, the firm has ramped up efforts to obtain new orders of gas turbines created through the energy unit of Alstom.
Before, the firm lagged behind when it comes to this technology. Yet, on the back of this deal, it can now provide new gas turbines through combined efforts. The 660 ton gas turbine promises of GE boosted the generation of power with heightened efficiency.
Aside from the gas turbines, under its plan to improve its European presence, the company has also disclosed its plans to work on offshore wind farms that were overlooked by Alstom before. The corporation broadcasted earlier this month that it is planning to complete its DolWin3 project, which connects the power grid with the offshore wind farm.
General Electric will be able to increase its earnings from its renewable energy unit by working on wind farms. Back in 2015, GE’s renewable energy unit contributed just 5 percent to its overall revenue. The firm intends to obtain more contracts in Europe, which will allow it to improve revenues obtained from the industrial sector.
As part of GE’s long-term goal, the company has been shedding some of its financial assets. In addition, the conglomerate has also ramped up its efforts to grow its industrial business since the previous year. By the end of 2016, the General Electric intends to sell financial assets amounting to approximately $200 billion. In doing so, the company is planning to minimize the volatility in the financial segment of its consolidated revenues.
Meanwhile, GE intends to boost its industrial segment revenue in the long term. With this aim, the conglomerate is inclined to do business in markets that are considered untapped, including Cuba and Iran, where the government of the United States has lifted its sanctions recently.
According to GE’s most recent press release, the company has already attained about 80 percent of its year-end target, while the remaining of the $200 billion target is anticipated to be achieved.