18 November 2009 - GE and Shenhua Group are to form a joint venture to build and operate coal gasification and coal fired power generation facilities in order to advance "clean coal technology" solutions in China.

The joint venture will see GE and Shenhua execute a strategic vision to improve cost and performance of commercial scale gasification and integrated gasification combined-cycle (IGCC) solutions. This includes industrial coal gasification applications in China as well as jointly pursuing the deployment of commercial scale IGCC plants with carbon capture.

The parties anticipate that the transaction would be completed in the first half of 2010, subject to the negotiation of definitive agreements and obtaining all required approvals.

"The combination of Shenhua's extensive experience in developing and operating coal gasification and coal-fired power generation facilities in China with GE's proven gasification and IGCC technologies would create a leading gasification technology business in China with significant local presence, focus, resources and expertise," said Mr. Wang Xiaolin, Vice President of Shenhua Group.

Steve Bolze, President & CEO, GE Power & Water, said:"Once established, this joint venture would represent an important investment by GE and Shenhua in the future of gasification in China and the deployment of cleaner coal technologies. Each business would contribute existing technology, operational, and service expertise to create a comprehensive gasification and cleaner coal technology and service provider in China."

Gasification technology has become a critical tool in the expansion of the Chinese economy, allowing a wide variety of industrial products and fuels to be created from low-cost abundant coal resources.

GE's gasification technology is one of the most widely applied technologies of its kind in China, with more than 40 licensed facilities. As gasification projects in China get larger and more complex, advanced technologies such as GE's new larger scale quench gasifier and higher-pressure gasification technology will be critical to reducing overall project cost.

Shenhua is one of the world's largest coal and energy companies, with coal reserves, coal-fired power generation, and a national role in the development of new coal-related technologies such as coal-to-liquids and carbon sequestration.

Shenhua has significant experience in the development of coal-to-chemicals facilities and in the operation of coal gasification systems over a range of technology configurations.