Ge 2009 Eco Magi Nation Report

8/8/2019 Ge 2009 Eco Magi Nation Report

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12009 annual report

ecomagination

Doubling Our Impact

nextpreviousour progress product storiesbusiness overview


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22009 annual report

overview

Ecomagination is abusiness initiative to helpmeet customers demand

for more energy-efficientproducts and to drivereliable growth for GE.

It reects GEs commitment to invest in innovative solutionsto environmental challenges, delivering valuable products andservices to customers while generating proftable growth orthe company.

This document reports on GEs progress on ecomagination,including growing partnerships with customers, governmentsand non-governmental organizations that are helping addresssome o the worlds biggest challenges.

employees featured on the cover (left to right)

danielle merfeld, leads solar research at GE Global Research in New York

wei cai, leads clean water research at GEs Global Research Center in China

ajith kumar, key inventor & developer of GE Transportations Trip Optimizer

paul holdredge, Design for Environment program manager for GEHC

tomoko villarin, is the marketing program manager for GEs GeoSpring water heater



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32009 annual report

Today, more people around the world

live productive and ulilling lives.It was quite an accomplishment.But that 20th century inrastructure,which we created and built, is lastcenturys solution and is ast becomingobsolete. Today, we have an inspiringresponsibility and an enormousopportunity to transorm the worldsinrastructure to a cleaner, moresecure, and more eicient systemthat will ensure a more sustainable

uture or generations to come.Companies in the business o innova-tion and technology that embrace thisopportunity will lead and win. At GE,we get this. This is ecomagination.

We launched ecomagination in 2005.Weve succeeded by embracing theworlds environmental issues as anenormous business opportunity. Aswith all initiatives at GE, we placedbold business metrics around it.

We executed against these metrics

and delivered strong benefts to our

customers and value or our share-holders: customer benefts in the ormo enhanced proft and competitivenesso their operations, and shareholdervalue in the orm o more competitiveGE products and, ultimately, increas-ing earnings.

To accelerate innovation we committedto double our annual investment inclean tech R&D to $1.5 billion by 2010.We actually accomplished that in 2009,

a year ahead o plan, delivering eventhrough a severe economic downturn.This accelerated R&D investmenttotaled $5 billion and produced afveold increase in certifed productssince 2005. Products like our GEnxaircrat engine, which has a 15% loweruelburn during cruise than the plat-orm it replaces. Products like ourEvolution Series locomotive, whichreduces uelburn by 6 percent.

Products like our 2.5-megawatt wind

to our investors, customers and other stakeholders:

The world is at a defining moment. The energy

infrastructure that transformed the world inthe 20th century must be transformed once againin the 21st. Last century, electricity industrializedand modernized more than half the planet.Hydrocarbon fuels connected people and movedgoods around the world by land, sea and air.

ecomaginationadvisory board

The ecomagination advisoryboard counsels the companysecomagination team on criticalenvironmental and businessissues. The board also enablesthought leaders to learn moreabout what GE is doing. Currentboard members are:

james cameronClimate Change Capital

eileen claussenPew Center on Global Climate Change

vinod khoslaKhosla Ventures

jonathan lashWorld Resources Institute

mindy lubberCeres

richard mccroryUniversity College London

ernest monizMassachusetts Institute of Technology

dan reicherGoogle Corp.

turbine, which oers reliability andperormance improvements and thus

more economic value compared toearlier generations. Because wecommitted to double our investmentin innovation and technology, we aremore competitive in the markets weserve. This is ecomagination.

Along with our R&D commitment, in2005 we also committed to a stretchgoal o $20 billion in ecomaginationsales in 2010. In 2009, we achieved$18 billion, up 6 percent in a year

when global economies were down,and we are well on the path to our2010 goal. Overall, in the frst 5 years,we invested $5 billion in clean techR&D, and we generated $70 billionin ecomagination revenues. Thisstrong revenue perormance is atestament to the competitiveness oour ecomagination products and inno-vations, the direct result o our R&Dcommitment. As or our own opera-

tions, we committed to reduce ourenvironmental ootprint and, in 2009,our greenhouse gas emissions weredown 22 percent compared to 2004,well ahead o our goal.

By every metric, by every stretch goalwe set, ecomagination has delivered.We have created more efcient andeconomic solutions or our customers,and a more competitive position andearnings or our shareholders.



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42009 annual report

And today, we commit to do more.

With the enormous defning momentacing the world, we are committing,in eect, to double our eorts onceagain. So while weve already invested$5 billion in ecomagination R&D in thefrst 5 years, we now commit to anadditional $10 billion in the next 5 years.While weve grown our ecomaginationrevenues in the frst 5 years, werenow committing to grow them atdouble the rate o overall companygrowth. And while weve made terrifc

progress reducing our own environ-mental impact, were now committingto make our company twice as energyefcient by 2015. We are doublingdown to drive even aster impactand to deliver our contribution to a21st century energy transormation.This is ecomagination.

We are a global company. We operatein more than 100 countries and we seegrowing demand or our ecomaginationproducts practically everywhere. Butthe world needs more engaged stake-holders because scale is critical tomaking the 21st century inrastructuretransormation aordable. Countrieslike China and Korea, which prioritizeand execute clean energy plans ona massive scale, encourage us.Countries that embrace this opportunitywill lead and win. As a global company,we are positioned to win with them.

We also know the United States andother countries can do the same,

but they must prioritize, decide, andthen act. We continue to call or

greater and more purposeul actionsby leaders and stakeholders aroundthe world to prioritize investment inand oster innovation o cleanerenergy solutions or the 21st century.

We are at a defning moment. Thevision o a cleaner, aordable, secureand globally accessible energy inra-structure inspires and motivates our300,000 GE colleagues and us everyday. Because o this, we are doubling

our commitments to accelerate ourcontributions and to lead. This isecomagination. Join us.

Sincerely,

Jeffrey R. Immeltchairman o the board& chie executive ofcer

Steven M. Fluddervice president,ecomagination



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52009 annual report

Batteries

GEs new battery plant, located inSchenectady, New York, is expectedto create 350 new jobs in the region.The acility has the advantage o

being in close proximity to GE GlobalResearch in Niskayuna, whereresearchers will continue to work onenhancements to battery chemistryand related systems technology. GE ismaking a $150 million investment tobuild upon the Durathon battery tech-nology through the development onew materials, new manuacturingtechnologies and intelligent controls.

Wind

GE announced that it will supply338 2.5 MW wind turbines to theShepherds Flat project near Arlington,Oregon, developed and owned by

Caithness Energy. Caithness Energyestimates that the $2 billion projectwill inject $16 million annually odirect economic benefts into Oregon,and will employ 400 workers duringconstruction and 35 during operation.Construction will begin in 2010 andwill be completed in 2012.

GeoSpring HybridWater Heater

GE Consumer & Industrial announcedplans to manuacture high-end

energy-efcient ront-load washersand dryers in Louisville, Kentucky,beginning in 2012. Production o thenew products, together with plans toin-source manuacture o appliancecomponents and to signifcantlyincrease the number o engineers atthe acility, will result in the creationo more than 430 new jobs at theLouisville operation. When combinedwith the Hybrid Water Heater jobsalso announced, the total number o

new GE Appliance jobs announced in2009 reached 830.

GEnx

GE Aviation announced the expan-sion o its operations in Batesville,Mississippi, adding an additional350 jobs over the next ew years. The

Batesville plant produces compositecomponents or the GEnx jet engine,which will power Boeings new 787and 747-8 aircrat. The GEnx engineis the worlds only jet engine withcomposite an blades, composite anplatorms and a composite an case.

job creation



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62009 annual report

our progress

In the fifth full year

after the launch ofecomagination in May2005, GE has madesignificant progresson each of our fivemain commitments.

in 2009, ge:

Grew revenues rom ecomaginationproducts by six percent, to $18 billion

Invested $1.5 billion in cleaner technologies,achieving our 2010 goal one year aheado schedule

Reduced greenhouse gas emissions romoperations approximately 22 percent romthe 2004 baseline

Reduced water use by 30 percent romthe 2006 baseline

Kept the public inormed throughthis report, its Web site and publicengagements

And ecomagination is not stopping there GE has now established new goals to ensurethat ecomagination remains on the leadingedge o creating market solutions to theworlds biggest challenges. We are now com-mitting to doubling all that we accomplishedin the frst fve years o ecomagination in

the next fve years.

nextpreviousproduct storiesour progressbusiness overview


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72009 annual report

commitment

Doubling ourinvestment in R&D

Today, GE has more than 35,000 technologistslocated around the world in our businessesand at global research centers in Niskayuna,New York; Shanghai, China; Munich, Germany;and Bangalore, India. They work intensely

every day to deliver leading-edge technologyand products that drive GEs growth andcreate a better world.

In 2009, GE invested $1.5 billion onecomagination R&D, reaching our commit-ment to double our annual investment by

2010 one year ahead of schedule. GE contin-ues to be committed to unleashing newtechnology so we are doubling our commit-ment from $5 billion to $10 billion by 2015.

GE Global Research employeeChristopher Sevinsky

GE Global Research employeesGu Yanfei and Zhang Minglong



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82009 annual report

Public investments in critical research,development and demonstration such as greatly improved across-the-board energy efciency, carbon-reeelectricity and clean water have notbeen commensurate with the challenge,with the recent exception o the one-time boost provided by the AmericanRecovery and Reinvestment Act o 2009.The private sector is responding with

an unprecedented wave o energytechnology innovation and entrepre-neurial activity.

In particular, ecomagination is a leaderin meeting the innovation challenge,scaling up to R&D investments o tenbillion dollars over the next fve years inits clean technology portolio, reectingan enhanced business ocus. Theecomagination technologies spanmultiple sectors residential and

commercial buildings, industry, trans-portation and have a pervasive themeo increased efciency, the surestway to fnd cost-eective sustainableenergy solutions.

However, the greenhouse gas emis-sion goals considered prudent bythe international community call ordramatic acceleration in the large-scale deployment o these cleanenergy technologies in the comingdecade, and this in turn calls or policyinnovation that builds the public ben-eft o climate change risk mitigationinto private energy decisions. Such

policies have proved elusive, but theyare likely to come soon, especiallyi clean energy technology develop-ment reduces costs. The aggressiveecomagination R&D program shouldbe an important contributor to thiscentral goal o cost reduction or acarbon-constrained world.

Investing in ecomagination

Energy technology innovationand business model innovationare two key enablers of thelarge-scale transformation ofenergy supply, delivery and end

use that is needed to both meet global economic

development imperatives and yet minimizeclimate change risks.

a voice from our advisory board

ernest j. moniz

Cecil and Ida Green Professor

of Physics and Engineering

Systems, director, MIT Energy

Initiative and ecomagination

advisory board member



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92009 annual report

commitment

Increase revenues fromecomagination products

In 2009, ecomagination revenues grewsix percent, to $18 billion, even in achallenging global environment. We arenow committing that ecomaginationrevenue will grow at twice the rate of

our total company revenue in the nextfive years, making ecomagination an evenlarger proportion of total company sales.



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102009 annual report

The ecomagination Product Review(EPR) process not only ensures that allecomagination oerings meet thesecriteria, but also that all associatedmarketing claims are clear, compellingand substantiated. The corporateecomagination team includingcorporate legal counsel, environmental

health and saety counsel and productmarketing teams rom the GE businessunits runs the process. GreenOrder,a sustainability strategy consultingfrm, verifes the product inormationand advises on the associated market-ing claims.

Product characteristics consideredduring the EPR process include envi-ronmental actors such as energyconsumption, greenhouse gas emis-

sions and water use, along with theproducts ability to deliver fnancial or

other operating benefts to customers.Once approved, each product isreviewed regularly to ensure thatperormance claims are based on thelatest relevant inormation and thatthey reect any signifcant changes tothe product itsel or its market.

The EPR process strengthens GEsawareness o customers environmentalperormance needs, inorming howGE develops products and ensuring thatproduct marketing is both compellingand accurate.

The ecomagination Product

Review Process

GE employs a rigorous reviewand qualification process toassess which products andservices should be included inthe ecomagination portfolio.

Ecomagination offerings must significantlyand measurably improve customers operatingperformance or value proposition and theirenvironmental performance.

a process perspective

andrew shapiro

founder and president,

GreenOrder

CompanyAn



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ecomagination product portfolio

Appliances ENERGY STAR qualifed Dishwashers

ENERGY STAR qualifed Front-LoadClothes Washers

ENERGY STAR qualifed Hot and ColdWater Dispensers

ENERGY STAR qualifed Rerigerators

ENERGY STAR qualifed Top-LoadClothes Washers

High Efciency Water Heaters eaturingthe GeoSpring Hybrid Water Heater

Homes Inspired by ecomagination

Aviation

CFM56 Tech Insertion CFM56-3 Advanced Upgrade

GE90-115B Aircrat Engine

GEnx Aircrat Engine

TrueCourse Flight Management System

Commercial Finance Environmental Perormance Services

with Telematics

Consumer Finance Australia eco Mastercard

Energy-Efcient HomeImprovement Loans

Digital Energy 750 kVA Uninterruptible Power

Supply (UPS)

Energy 7FA Gas Turbine

AF-6 Series Drives

Amorphous Transormer

Coordinated Volt-VAR Control (CVVC)Technology

DC Data Centers Inspired byecomagination

DLN 1+ Combustion System DLN 2.6+ Combustion System

Field Force Automation Sotware System

Distribution System

H-Turbine Combined Cycle System

HEAT Steam Turbine

High Efciency Motors

Integrated Gasifcation CombinedCycle (IGCC)

Jenbacher Associated PetroleumGas Engine

Jenbacher Biogas Engine Jenbacher Coal Mine Gas Engine

Jenbacher Combined Heat & Power

Jenbacher Landfll Gas Engine

Kn3 Optimization Sotware or PowerPlants

LM6000 PF Aeroderivative Gas Turbine

LMS100 Simple Cycle Gas Turbine

Nuclear Energy

OpFlex Turndown technology

Powerwave+ Cleaning System

PulsePleat Filter Elements

QL Ultra Efcient Transormer

Quadramatic Motors

Solar Energy

Wind Energy

Zonal Combustion Tuning orCoal-Fired Boilers

Energy Financial Services Greenhouse Gas Services, LLC

a GE AES Venture

Healthcare +PLUSPAK Polymer Bottle

Centricity Enterprise Electronic MedicalRecords

Digital Mammography

Digital X-Ray

High Efciency CT (ComputedTomography) Systems

High Efciency MR (Magnetic Resonance)Systems

Hospitals Inspired by ecomagination

Voluson E Series Ultrasound

Wave Bioreactor or Biotherapeutics

Production

Lighting ENERGY STAR qualifed Compact

Fluorescent Lighting

High Efciency Evolve LED Fixtures orGeneral Lighting

High Efciency Halogen Lamps

High Efciency Lighting Control Systems

High Efciency Linear Fluorescent Lamps& Ballasts

LED Light Sources

Oil & Gas BCL 300 Series Centriugal Compressor

or Sour Gas Reinjection

DLN-1 IBH or FR5-2 gas turbines

Expanders or Power Recovery Systems

Integrated Compressor Line (ICL)

ORegen System or Waste HeatRecovery

PGT25 DLE Products

UltraScan Duo Pipeline Inspection Tool

Transportation 1033 Locomotive Emission Kits

China Mainline Evolution Locomotive

Evolution Hybrid Locomotive

Evolution Series Locomotive

Kazakhstan Evolution ES44ACiLocomotive

Locotrol system

PowerHaul Engine

Russian-Built LocomotiveModernization Skids

SmartBurn technology

Trip Optimizer Sotware

Water ABMet (Advanced Biological Metals

Removal) system

Advanced Membrane

Desalination

DusTreat Control Treatment Programs

E-Cell MK-3 Electrodeionization(EDI) System

Electrodialysis Reversal (EDR)

Entrapped Air Flotation (EAF)

GenGard Cooling Water Solution

Homespring Central Water Purifer

MetClear Metals Removal Chemistry

PRO/Titan Reverse Osmosis System

SAGD Produced Water Evaporator

Waste-to-Value solution

ZeeWeed Membrane Technology



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commitment

Reducing greenhouse gas

emissions and improvingenergy intensity

In 2005 we set three goals aroundGHG emissions and energy efficiency(with 2004 as our baseline):

Reduce absolute GHG emissionsby 1% by 2012

Reduce GHG intensity 30%by 2008 (a goal we met)

Reduce energy intensity 30%by 2012

GE Healthcare employee

Gregory Somann

GE Aviation employee Al Bartnicki

GE Aviation employee Pat Moore

GE Healthcare employeeSteve Rajnay



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500.09

2004 2009

331.44

GE OPERATIONALENERGY INTENSITY

(MMBtu per

$ million revenue)

61.92

2004 2009

51.96

GE OPERATIONALENERGY USE

(Million MMBtu)

7.46

2004 2009

5.79

GE OPERATIONAL

GHG EMISSIONS

(Million metric tons

of CO2 equivalent

emissions)

60.22

2004 2009

36.95

GE OPERATIONAL

GHG INTENSITY

(Metric tons per

$ million revenue)


Although we exceeded our 2008 goalo 30 percent GHG emissions intensity

(measured as CO2 equivalent emissions/revenue in millions o U.S. dollars), wecontinue to track this metric. In 2009,our GHG emissions intensity reductionwas 39 percent versus 2004, slightlylower than the 41 percent achieved as o2008. This is attributable to reductions inGEs 2009 revenue that overshadowedreductions in GEs GHG emissions.

In 2009, GEs energy use was 51.9 millionMMBtu, a 16 percent reduction rom the

2004 baseline year. This reduction isattributable to our ocus on improvingour energy efciency, and to economicconditions throughout 2009. GEsenergy intensity (measured as MMBtu /revenue in millions o U.S. dollars) in2009 has improved 34 percent since2004, a slight decrease rom the37 percent reported in 2008.

In 2009, GE recognized 50 o its sitesas eCO2 award winners. These sites

had at least a fve percent reductionin GHG emissions versus the baselineyear independent o changes in pro-duction levels.

For more inormation, available inthe online GE 2009 Citizenship Reportto be released July 2010, please visitwww.ge.com/citizenship/ghginventory.

operational ghg emissions

In 2010, we are setting new goalsthat will continue to drive efciency

into our operations. By 2015, GE willimprove the energy intensity o itsoperations by 50 percent, and willreduce its absolute GHG emissionsby 25 percent (both using the 2004baseline).

In 2009, GEs operational GHG emissionswere 5.79 million metric tons o CO2equivalents, a reduction o 22 percentrom our adjusted 2004 baseline. Eachyear GE adjusts its 2004 baseline to

account or divestments and acquisi-tions. Our GHG emissions in 2004 were12.00 million metric tons CO2 equiva-lents and our adjusted baseline is7.46 million metric tons o CO2 equiva-lents. Our baseline or energy use hasbeen adjusted rom 116 to 62 millionMMBtu. We measure our progresstowards our commitments againstthis adjusted baseline.

We continued to implement many

GHG and energy reduction projectsduring 2009, but the bulk o our emis-sion reductions during the past yearare attributable to reduced demanddue to global economic conditions.



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energy treasure hunts

The Energy Treasure Hunt process,created by Toyota Motor Manuacturing

North America, continues to bothengage employees and identiy projectsthat drive energy efciency. Since GEbegan implementing the process, proj-ects identifed during these events havecontributed to reductions in excess o250,000 metric tons CO2 and saved inexcess o $130 million.

In 2009, in addition to numerous EnergyTreasure Hunts perormed by the busi-nesses, large events were held at GE

Healthcares U.S. headquarters andElectric Avenue locations in Wisconsin,as well as GE Aviations agship man-uacturing and testing acility in Lynn,Massachusetts. These resulted in theidentifcation o opportunities to reduceover 57,000 metric tons o CO2. Manyo the projects had payback periodso less than one year, and the sitescontinue to implement them.

These events, which involve our service

partners and suppliers, continue as asignifcant part o GEs program. Ouroutreach eorts continue as well, aswe share our approach with suppliers,customers and partners.

The Energy Treasure Hunt processcontinues to spark the interest oexternal agencies. In July 2009, repre-sentatives o SEMARNAT (the MexicoEnvironmental Agency) in Saltillo,Mexico, participated in an Energy

Treasure Hunt at the GE ofce buildingin Monterrey, Mexico. The represen-

tatives were very encouraged aboutpursuing this approach in their ownofces. Likewise, in 2009, GE EnergysHangzhou site received special com-mendation or conducting an EnergyTreasure Hunt, and was asked toshare its fndings with over 300 com-panies that attended the XiaoshanDevelopment Zone Annual Saety,Environment Protection and EnergySaving meeting.

In addition to identiying opportunitiesto drive energy efciency into ourexisting buildings, GE has pursued LEEDor BREEAM certifcation or commercialinteriors and both new and existingbuildings. These locations are seeingdecreased levels o energy use as aresult o certifcation. GE locations inStamord, Connecticut; Mississauga,Ontario; Houston, Texas; Shanghai,China; London, England; and Bangalore,

India, have been recognized throughthe LEED or BREEAM processes. GEHealthcares new manuacturing acil-ity outside o Albany, New York, wasrecognized as LEED-gold certifed atthe end o 2009. Overall, GE continuesto pursue processes and programsthat drive energy efciency into itsoperations.

Going orward, we have identifedadditional projects to urther reduce

non-CO2 GHG emissions at several oour operating acilities.GE Aviation employee Peter MacIsaac



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ge energy nancial servicesinvestments

GE also reports GHG emissions romits investments in power projects

through GE Energy Financial Services.

GE Energy Financial Services investsin power projects in a number o ways:equity, lease and debt. We are reportingemissions rom investments in whichGE Energy Financial Services has anequity interest based upon the businessunits percentage o equity ownership.

In 2009, GE Energy Financial Servicesgreenhouse gas emissions totaled

approximately 6.5 million metric tonso CO2 equivalent rom 24 investments.By comparison, GE Energy FinancialServices held an equity interest in24 power projects in 2008, which emit-ted 9.8 million metric tons o CO2equivalent. The decline in emissionsbetween 2008 and 2009 is primarilydue to the reduction o our equityinterest in certain assets and otherassets running less than in prior years.In addition, the renewable energy proj-

ects in which GE Energy FinancialServices has purchased equity inter-ests avoided 4.9 million metric tonso CO2 equivalent in 2009, down rom5.0 million metric tons in 2008 due tothe variability o wind.

In 2006, GE energy Financial Servicesdemonstrated leadership by becomingone o the irst inancial servicescompanies to report greenhouse gas

emissions associated with powerproject equity investments. In 2009,

the GE unit continued this leadershipthrough the ollowing actions:

Establishing a long-term goal tobalance investments in coal-fredpower plants with renewable energy,clean technology investing andgreenhouse gas emissions cuts

Focusing investments in coalpower plants on efcient, super-critical technology and projects

with sequestration potential

Pricing CO2 or coal and otherossil uel plants into deal approvalprocesses

Engaging with non-governmentalorganizations on policy recommen-dations to ensure that coal-fredgenerating units are designed totake into account the uture costo carbon

Voluntarily reporting emissions

Exploring increasing ocus oninvestments in energy conservationand efciency



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commitment

Reducing water use

and improving water reuse

In May 2008, we announced our goal toreduce our freshwater consumption by20 percent in 2012 from a baseline of 2006.Earlier this year, we modified the goal toa 25 percent reduction by 2015. GE annually

collects water data for those sitesconsuming more than 15 million gallonsa year. This includes water used forpotable, process and sanitary purposesas well as once-through cooling watersfrom freshwater sources. We adjust thedata each year to reflect acquisitions

and divestments.

In 2009, GEs water use was 10.7 billiongallons, a 30 percent reduction from 2006.

GE Global Research Center

employee Rihua Xiong

GE Aviation employeeBryce Chadwell



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three factors contributedto the large reduction weare reporting:

As discussed in last years report,at our largest water-consuming site,

we identifed that water use hadbeen substantially higher in 2008than originally estimated. We identi-fed this through the use o GESensing Ultrasonic ow meterswhich were installed that year andhelped us better quantiy actual owuse at the acility. As a result o thisdiscovery, we reevaluated the totalow or this site during the 2006baseline year and concluded that itwas 2.2 billion gallons more than

previously estimated. This conclusionwas validated through a review byan external, independent engineer-ing frm. In addition to the adjusted2006 ow data, several signifcantsteps to reduce water consumptionwere taken, including improved valveoperation, opportunities to replaceolder single-speed pumps with newvariable requency drive pumps,control valves and closed loop coolingopportunities. As a result, testingoperations at the site have sincebeen conducted more eicientlyusing signifcantly less water thanhistorical practices.

2006Total: 15.3 billion gallons

Once-Through Cooling: 8.9 billion gallons

2009Total: 10.7 billion gallons

Once-Through Cooling: 5.4 billion gallons

We conducted Kaizen blitz waterreduction events at three o ourlargest water-consuming sites.The Kaizen approach assemblesmulti-unctional teams who spend

a concentrated week monitoringand assessing how water is usedat a acility, ultimately developingwater reduction projects includingassociated fnancial benefts.

Production decreased at some acili-ties due to economic conditions.

Due to the enormous success o theKaizen blitz activities in 2009, we willcontinue to conduct these events atthose sites using the most signifcant

quantities o water across the com-pany, with six events planned or 2010.

Another action under way will poten-tially reduce GEs global water useby an estimated fve percent througha large project at one o our UnitedStates plants utilizing GE Water &Process Technology equipment includ-ing nanofltration and ultrafltrationtechnologies to recycle and reusewater. We anticipate the new systemwill be operational by 2012.

In addition, because o the substantialreadjustment to the 2006 water usebaseline, we will reevaluate urthermodifcations to GEs long-term waterreduction goal.

For more inormation, available inthe online GE 2009 Citizenship Reportto be released July 2010, please visitwww.ge.com/citizenship/

waterinventory.



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In many areas o the world, suraceand groundwater sources are alreadyully developed. Growing populationscan expect to see declining suppliesas available groundwater resourcesdwindle and the eects o climatechange begin to be elt. This meansthat decision-makers need to ocus

their eorts on reducing demand andreusing available supplies.

GE is making a vital contribution toglobal water reuse eorts through thedeployment o its water treatmentand reuse technologies. In the U.S.Southwest, or example an areaalready characterized by extremewater scarcity GE has helped the cityo Tempe, Arizona, expand its waterreclamation program. The project has

resulted in the reuse o an additional2.5 billion gallons o water a year orcommercial and industrial applications.

In the U.S. Southeast, which has acedincreasingly devastating droughtsover the past several decades, GE ishelping the power sector implementwater reuse technologies. The powersector in the United States is a majorwater user, accounting or 41 percento all water withdrawals in 2005.

Cogentrix Energys 120-megawatt powerplant in Battleboro, North Carolina,

implemented a GE technology solutionto conserve an estimated three milliongallons o water annually the equiv-alent to approximately 22 percent oits current water usage.

GE is also implementing water reusetechnologies in water-intensive indus-tries. In Oakwood, Virginia, or example,GE is providing advanced iltrationmembranes and thermal water treat-ment technology to CONSOL Energyto treat mine water in one o thenations largest coal mines, enablingabout 99 percent o the water to bereused in part at the companys prep-aration plant acility.

Water reuse technologies can helppublic and private sector decision-makers in water-scarce regionsthroughout the world successullytackle the growing problem o waterscarcity. However, these technologiescannot be deployed in sufcient quan-tities as long as withdrawing waterrom a river or a well is less expensivethan conserving or reusing it. So thenext big challenge lies in identiyingand implementing institutional, legaland regulatory reorms that boostthe price and marketability o water

supplies while providing adequatesocial and environmental saeguards.

Water reuse technologies are vital to

addressing growing water scarcity

Water stress is increasingacross much of the world. Thenumber of people facing waterscarcity or water-related stressis projected to increase from

one billion in 2005 to over five billion by 2050.Increasing freshwater scarcity is being driven bya number of factors, including population growth;urbanization; increasing production of industrial,energy and agricultural goods and services;and climate change.


jonathan lash

president, World Resources

Institute and ecomagination

advisory board member



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commitment

Keep the public informed

Steve Fludder with U.S. Ambassador toDenmark Laurie Fulton and U.S. Secretaryof Commerce Gary Locke at ecomagination

press brieng in Copenhagen.

GE 2009 ecomagination

television commercial

President and CEO GE Japan Yoshiaki Fujimori,

Steve Fludder and Senior Vice President and DirectorGE Global Research Mark Little on a panel atecomagination day in Tokyo.

GE is continuing ongoing discus-sions, dialogues and communica-tions to engage with the public onour ecomagination eorts. Thisyear, the company is launching anupdated Web site at www.ecomag-ination.com where the public canlearn more and engage in a dia-logue about GE, ecomagination,our customers and our diversestakeholders.

As part o GEs overall corporateeort to improve transparency,the company issues this annualecomagination report to trackenvironmental goals as well asa separate citizenship reportto highlight social responsibilityinitiatives. Throughout the year,GE also provides updates onecomagination through share-holder and analyst meetings.

http://ge.ecomagination.com/http://ge.ecomagination.com/http://ge.ecomagination.com/http://ge.ecomagination.com/


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GEs commitment to double its R&Dinvestment in clean technology productsby 2015; set a target to realize twice therevenue growth rom ecomaginationproducts compared to overall growth;and reduce energy use, GHG emissionsand water consumption is exactly thedirection we need to go. All companiesshould be reexamining their businessstrategies and making these types o

commitments.GE and other companies need toexpand their reach and examine thecomplete sustainability impacts otheir businesses rom their opera-tions, through their vast supply chainsand their employees, and to the useand disposal o products. It is throughthis depth o analysis that both com-panies and investors can understandrisks and opportunities or achieving

competitive advantage.

In order to reset our economy to besustainable, we also need strong policysignals, including energy and climatelegislation that puts a price on carbon.We need to create certainty or com-panies and investors so that morecapital will be invested in the develop-ment o energy-efcient, low-carbonsustainability solutions. GE is activelycalling on governments to act now,

and we need more companies, inves-tors and other stakeholders to cometogether on this critical economicissue. Policy certainty will help inves-tors to reward the companies that aretaking action now on sustainabilityand positioning themselves or long-term fnancial prosperity.

Stakeholder engagement

Sustainability is a must for busi-ness success in the 21st centuryeconomy. The combined realityof climate change, waterscarcity and billions of people

still working and living in poverty are profound

challenges for the global economy. Leadingcompanies are focused on developing solutions,collaborating with stakeholders and otherbusinesses and pressing to ensure that govern-ments provide the right drivers and incentivesto encourage innovation and jobs.


mindy lubberpresident, Ceres and

ecomagination advisory

board member



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product stories

Beyond numbers alone,ecomagination comes to life in

an even more important way the successes of our customers.Across borders and industries, organizations are improvingtheir environmental perormance in dramatic ways usingecomagination products. From solar energy and biogas tosmart grid technology and lighting solutions, their storiesare as varied as the ecomagination portolio itsel.



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Ensuring a cleaner, more secureenergy uture in the ace o this grow-ing demand will require a diverse mixo power generation technologies.

Achieving this mix wont be easy.Stronger policies to bring more renew-able technologies to market; a smarter

grid designed to accept high penetra-tions o wind and solar power; derivingpower rom conventional uels incleaner, more efcient ways; and newglobal emissions standards all will beneeded to make this possible.

Renewable energy growth has explodedthis past decade, but were not evenclose to realizing its ull potential. Andwhile wind and solar cant meet all oour uture energy needs, both could

account or 20 percent o the worlds

power capacity in the next 20 years asnew advancements bring costs in linewith ossil uels.

As we increase renewable energycapacity, we cannot ignore traditionalsources like coal, natural gas andnuclear that comprise the bulk o

power generation today and will ordecades to come. With coming inno-vations, we will reduce emissions romthese sources while increasing theirefciency and saety. We will likelysee, or example, coal gasifcationwith carbon capture capability;the development o cleaner solutionsutilizing gases rom existing coalmines, biomass plants and landflls;and nuclear power with uel recyclingthat handles waste in saer, moreeective ways.

With a balanced, diversifed approach,we can deliver a cleaner, more secureenergy uture. The good news is thatGE and others are investing and drivingadvancements on several technologyronts to create the right mix.

the right mix for a cleaner, more secure energy future

Global energy use continues to grow,

while interest in renewable energy isat an all-time high. World demand forelectricity is expected to double by2030, driven in part by the increasedneeds of developing nations.

mark little

senior vice president and

director, GE Global Research



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playing the sun at many angles

From project investing to platform expansions

and venture capital, GE is supporting solarpower from many angles.

Since 2005, GE has financed and invested in247 megawatts of solar projects, including whatwas once the worlds largest, the 11-megawattSerpa solar plant in Portugal. But the company isnot focused only on individual projects its alsoputting capital into other companies that arebuilding out solar power around the world.

Partnering with one o Spains largestand most successul solar projectdevelopers, Fotowatio RenewableVentures (FRV), GE Energy FinancialServices has expanded its solar plat-orm in Europe and the United States.Within one year o receiving equityinvestments rom GE and others, FRVacquired one o the largest solar pho-tovoltaic (PV) parks in operation in theU.S. the 14-megawatt project atNellis Air Force base in Nevada and agreed to fnance and developa 10-megawatt photovoltaic powerplant in Fiumicino, Rome, which willbe one o the largest solar plants inRome province and one o the largestin Italy.

GE is also investing in the uture osolar: GE Energy Financial Serviceshas invested in Caliornia-basedSoliant Energy, the leading providero concentrated solar energy systemsor commercial rootops, and Israel-based SolarEdge, whose technologymaximizes the power generation oresidential and large-scale PV systems.In conjunction with PrimeStar Solar Inc.,GE Energy invested in the researchand development o thin flm PV panels.GE Global Research Centers aroundthe world are working on all acets opanel development. This includes theGE Research Center in Munich, whichis utilizing indoor and outdoor solarsystem test acilities to study fnished

module perormance.

The 14-megawatt project at Nellis Air Force

base, Nevada, is one of the largest solarphotovoltaic parks in operation in the U.S.



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GE is gaining a window into andhelping bring to market innovationsconceived outside the company.Through GE Energy Financial Servicesand GE Equity, we have made ventureand growth capital investments total-ing $175 million in 21 companies,ranging rom a battery maker or elec-tric cars to a developer o small windturbines. The benefts to GE includethe ability to see a broad universe otechnology developed outside the

company, and the establishment orelationships with other VC frms andentrepreneurs, spawning more high-quality deals. What do the companieswe invest in gain? The depth o GEstechnological expertise, fnancialstrength and the commercialization

skills to bring so many new technolo-gies to market. We bring to bear allthe irepower o GE, including GEGlobal Research, GE Energy FinancialServices, GE Energy and other com-mercial businesses. And we engagein high-impact collaborations on tech-nical and commercial issues. In short,we bring more than money to helpcompanies succeed.

While GEs in-house research,

development and commercial deploy-ment of innovative technologies isthe driver of ecomagination, its notthe whole story. Through its venturecapital investing,

ecomagination innovation: best of both worlds

solaredge

advanced electron

beams a123 systems

southwest windpower



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Specifcally, a smarter grid will helpintegrate cleaner energy resources;empower consumers to better managetheir energy usage and save money;increase productivity and efciencyin how our power is delivered; andimprove overall power reliability. In thepast two years, we have seen clear

progress toward smart grid adoptionwhen it comes to the commitmentand engagement o governments,utilities and the business community.

However, to make the smart grid areality, we need to do more aroundconsumer education and engagement.Without consumer buy-in, the ullpromise o smart grid benefts will notbe realized. Many o the utility smart

grid programs will be opt-in, whichmeans consumers will need to under-stand the benefts a smarter grid candeliver or them beore they will decideto join.

Multiple studies, such as ones by PNNLand Faruqui, show that when people

have access to direct eedback on theirpower use, they can achieve an aver-age savings o up to 10 percent ontheir electricity costs through simplebehavioral changes. Providing custom-ers with access to real-time electricityprice inormation and energy manage-ment systems can lead to additionalcost savings or consumers on theirelectric bills.

There are also real benefts to the utilityand the environment. According to aU.S. Department o Energy study, iutilities were to use demand responseprograms to achieve a 10 percentreduction in their peak loads, they wouldreduce emissions by an average o900,000 metric tons o CO2 annually

equivalent to the annual CO2 emissionso 200,000 cars on U.S. roads.

Clearly, this smarter uture is one keyway to meet our environmental targetsand urther economic vitality goingorward.

the time for smart grid

The smart grid is, in essence, an

energy Internet, delivering real-timeenergy information and knowledge and empowering smarter energychoices for consumers.

daniel c. heintzelman

president and CEO,

GE Energy Services



26/50


biogas project improving air and water quality

By using Jenbacher engines to power Chinas

largest poultry waste biogas-energy plant, theMinhe Animal Husbandry Facility supports thecountrys national economic and environmentalgoals to increase local energy reliability andimprove air and water quality.

The acilitys poultry waste biogaspower generation project uses three

Jenbacher engines to combust meth-ane generated by 300 tons o manureand 500 tons o wastewater daily.This process generates electricity orthe 19,000-square-meter complex, aswell as the local grid. In addition, anyresidual material in the digester islater used as ertilizer.

Jenbacher engines can help armcustomers improve the operational

and environmental impacts o theiroperations. By consuming the waste inthe digester to create biogas electricity,GEs technology can greatly reducethe sites greenhouse gas emissionsand dust created by the poultry waste,reducing impact on regional air andwater quality.

The Minhe Animal Husbandry Facility in China uses

three Jenbacher engines to process the electricity forthis 19,000-square-meter complex.



27/50


saving up to 185,000 tons of co2 per year in macedonia

Steel factories in the Macedonian industrial

park Zelezara Skopje are being powered bythe countrys first natural gas-cogenerationplant certified for international carbon creditfinancing. GE supplied 10 Jenbacher engineswith LEANOX lean-mixture combustion andengine control systems, as well as five steamgenerators for the plant.

By installing GEs cogenerationtechnology instead o separate elec-trical and thermal power equipment,the operators o this acility havereceived signifcant primary energysavings through reduced ossil uelconsumption.

In addition to reducing Macedoniasdependence on imported energy byincreasing local energy efciency and

reliability, the plant will help mitigatethe local environmental impactso energy and steel production, thusearning about 185,000 CertiiedEmission Reduction (CER) credits a year.This corresponds to a projected reduc-tion o the equivalent o 185,000 metrictons o CO2. Selling the carbon creditswill help the operator ensure thefnancial viability o the project.

GE supplied ten J620 gas engines for combined heat

and power production at Macedonias rst CHP Plant.

Inset photo (from left): Walter Neuhauser, CFO of

GE Energys Jenbacher gas engine business, Neven

Pecotic, GE Energy Country Executive for Macedonia,

George Kachurkov, Energetski Institut and Nikola

Gruevski, Prime Minister of Macedonia.



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wastewater treatment without discharge

Imagine a wastewater treatment process that

reuses virtually 100 percent of your wastewaterstream and leaves not a single drop to discharge.The technology exists today, but its high capitalcosts and high energy usage are preventingwidespread market adoption. However, scientistsand engineers at GE Global Research in Shanghaialong with the teams from GE Water and ProcessTechnologies are developing new technology toaddress these challenges and make Zero LiquidDischarge (ZLD) available to thousands ofbusinesses.

As part o the project, the team isdeveloping a unique electrochemicalprocess that can electrically separateimpurities rom a wastewater stream.Compared to thermal approaches,

where water is recovered at high tem-peratures (i.e., at its boiling point),this new approach would enable waterrecovery at room temperature. As aresult, it would be much less energyintensive and less costly.

GEs new ZLD process would transorma regulatory burden into an economicincentive or thousands o businessesthat must deal with wastewater treat-ment in their manuacturing operations.

Most o all, it will help preserve aprecious resource and protect theenvironment.

Rihua Xiong, Lead Engineer in the GE ChinaTechnology Centers ElectrochemicalProcesses Lab, is developing new

technology to make Zero Liquid Dischargeavailable to thousands of businesses.



29/50


a new system saves water and is betterfor the environment and employees

In Green Bay, Wisconsin, OMNOVA SolutionsPerformance Chemicals and GE implementeda water solution to save 3.6 million gallons ofwater per year, lessening the stress on fresh-water sources and thus reducing environmentalimpact.

The project involved installing GEs

reverse osmosis (RO) system combinedwith a cooling water treatment eatur-ing GEs Continuum AEC Alkalinechemistry program to reuse waterby sending it into the cooling towersystem instead o the sewer. Thistechnology change substantially

reduced reshwater usage

and yielded a yearly net savingso $120,000.

With decades of engineering and manufacturingexperience worldwide, GEs PRO Series modularreverse osmosis system provides a state-of-the-

art water system running at customers facilitiesin the shortest amount of time.



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ges wind technology: the evolution of power

In September, GE announced the acquisition

of ScanWind, a developer of advanced drive-train and control wind turbine technologiesaimed at offshore deployment.

ScanWind has designed and devel-oped 11 turbines, which are currentlyoperating on the Norwegian coast.GEs Renewable Energy business willexpand the oshore wind program,enhancing the proven technology by

leveraging its existing wind turbineexpertise, supply chain and globalresearch capabilities.

When the largest utility in CentralEurope began building Europes largestonshore wind arm, GE was there tosupply 139 o its giant 2.5xl wind tur-bines. Now, with construction o thefrst phase well under way, GE Energyinked a new deal to provide up to 101additional turbines. When completed,

the site will produce enough wind-generated electricity to meet the needso more than 400,000 E.U. homes.

The European Union currently has a goalo cutting greenhouse gas emissions20 percent while increasing renewableenergy capacity 20 percent by the year2020. To reach this objective, the EUhas set national targets or each EUmember state, based on the per capitaGDP o each country. In contrast, in

the United States, current proposals

beore Congress call or just three tosix percent o total U.S. electricity gen-eration to be produced by renewableenergy by 2012 which is essentiallyequal to or below the business-as-usual case.

The frst phase o the project, Fantanele,and the second phase, Cogealac, areboth located in Romania, which at theend o 2008 had only 10 megawatts owind generation equipment installed,according to the European Wind EnergyAssociation. But the new wind armwill increase that fgure dramatically when phase two is completed in 2011,the country will have a total capacityo 600 megawatts o wind power.

A key reason or the new wind armslocation is Romanias new pro-renewables legislation. The Romaniangovernment has created legislationthat is avorable to the developmento renewable energy resources, grant-ing signifcant incentives or windarms and other renewable energyprojects through 2015. This hasencouraged investors and developersto pursue projects in the country. These ScanWind turbines are currently

operating in Hundhammerfjellet on theNorwegian coast.



31/50


asias natural gas pipeline infrastructure

GE Oil & Gas ecomagination technology is

playing a major role in the development ofAsias natural gas pipeline infrastructure.It is specifically impacting the Asia Gas Pipeline,which will deliver gas from Uzbekistan andKazakhstan to China. The inflow of gas fromthese two countries will significantly helpChina meet its rising energy demands.

The pipeline will eature PGT25+DLEaeroderivative gas turbines, which

operate on natural gas. At base loadconditions, these turbines have anefciency o 41 percent, the highestin the 2932 megawatt power range,producing lower CO2 emissions permegawatt o power output than com-peting technologies. A total o sevenunits will be in operation across twopipeline stations o the Asia Gas Pipeline.

The Asia Gas Pipeline project urtherexpands GEs overall technology

presence in Kazakhstan. More than50 GE gas turbines and centriugalcompressors are installed or a varietyo gas transportation and sour gasreinjection projects across the country.

PGT25+DLE aeroderivative gas turbinesoperate on natural gas. At base loadconditions, these turbines have an

efciency of 41 percent, the highest inthe 2932 megawatt power range.



32/50


more energy efciency, less energy consumption

Engineers from GE Oil & Gas and scientists

from GEs European Research Center in Munichhave teamed up to develop a breakthroughtechnology that helps customers address thechallenges of rising fuel costs and demand formore efficient power systems. The result wasORegen, a system that converts the exhaustheat of gas turbines and the waste heat fromindustrial processes into usable electricity.

When coupled with a simple-cycle GEgas turbine, the ORegen system cangenerate up to 12.4 megawatts romwaste heat while consuming no addi-tional uel or water and avoidingassociated CO2 emissions. A simple-cycle gas turbine equipped with theORegen system operating more than8,500 hours a year compared to thesame turbine operating in a combined-cycle system generates additionalelectricity while avoiding the consump-tion o more than 11,000 cubic meterso water per year. This i s equivalentto more than our Olympic-sized swim-ming pools.

The ORegen system is ideal or use inlocations where water is scarce orcannot be exploited. It does not requireon-site manned supervision and canoperate at very low ambient tempera-tures. It is also an attractive alternativeto traditional steam cycle technology.

ORegen is a trademark of Nuovo Pignone SpA and is

available in select markets.

The ORegen converts the exhaust heat of

gas turbines and the waste heat fromindustrial processes into usable electricity.



33/50


re-imagining technology for a cleaner energy future

Todays power plant operators face increasing

pressure to find cleaner and more efficient waysof producing electricity while also keeping costsin check. Responding to these requirements, GEhas launched an upgraded version of one of thecompanys most popular gas turbines, the Frame7FA gas turbine. The new advanced gas turbinedelivers higher performance, more flexibility andfewer emissions, with estimated fuel savings of$2 million per year.*

Marking the latest evolution o GEswell-established gas turbine technol-ogy, the 7FA gas turbine can help powerplant owners reduce their environmen-tal impact and total cost o ownershipby allowing them to use less uel togenerate power.

A typical customer operating a new7FA gas turbine instead o an earlierversion o the 7FA gas turbine or anequivalent net plant output o 627 MWcould avoid the emission o morethan 19,000 metric tons o CO2 per

year. This improvement is equivalentto the CO2 emissions o approximately3,800 cars on U.S. roads.

Since its introduction, GEs F-class gasturbine technology has consistently setindustry standards or reliability anduel eiciency. The 7FA gas turbine

upgrade underscores GEs commitmentto continuously refne technology tomeet the evolving energy and environ-mental needs o todays customers.

GE Energy gathered product improvements fromacross the companys portfolio of turbine technologies

for the new 7FA which is made in GEs Greenville,South Carolina, plant.*Assumes $6 per MMBtu natural gas price.



34/50


ym krishna ssk transforms biomass intoa renewable energy source

In a remote area of Western Maharashtra, India,the YM Krishna SSK 16-megawatt cogenerationplant will soon take bagasse from a sugar milland provide energy back to the total plant whileusing mill waste and carbon credits to providesurplus power back to the market.

The sugar mill is at the center odevelopment here, providing orthe construction o irrigation androads while bringing education and

healthcare to the area. Last year itadopted GE Intelligent PlatormsProfcy Process Systems to control andautomate the captive power plant.

GE is a major automation supplier orbiomass-ueled captive power plantsglobally. The exibility and robustnature o Profcy Process Systems*,

a comprehensive system or processautomation and control that leveragesGE Intelligent Platorms broad hard-ware and sotware platorms, provides

YM Krishna with the ability to measureand analyze various operations withinthe plant. These operations includesteam, power and water consumption;production efciency; molasses out-put; steam generation; uel quantity;and water quality and quantity.

*Undergoing ecomagination product qualication in 2010.

GEs Procy Process Systems provides YMKrishna with a control system to reducestartup time and production downtime, as

well as improvement in energy efciencyand less dependence on human factors.



35/50


oridas major move to make its grid smarter

Energy Smart Florida, a joint effort among GE,

Florida Power & Light, Cisco Systems andSilver Spring Networks, has the potential to beone of the first holistic smart grid state imple-mentations in the United States. The goal is forsmart energy infrastructure to reach everyresident, uniting consumer, business, utility andgovernment around a common energy vision.

This groundbreaking initiative aimsto be a model electricity system orAmerican cities and the cornerstoneo a broader $800 million statewide

investment. It is using ederal eco-nomic stimulus unds to help spur a$200 million investment in smart gridtechnology and renewable energyover two years, including:

Smart grid automation and com-munications More like the Internetthan an electric network, the newsystem will connect smart meters,high-efciency transormers, digitizedsubstations, power generation and

other equipment through a central-ized inormation and control system.

Smart meters Smart meters willbe installed in more than our millionhomes and businesses.

Renewable energy integration Several local universities and schoolswill receive solar power installationsto help meet energy needs with

renewable energy technologies.

Plug-in hybrid electric vehicles 300 plug-in hybrid electric vehicleswill be added to the Florida Power &Light eet.

Consumer Technology Trials Through trial programs, Florida Power& Light customers will be empoweredwith inormation and knowledgevia smart meters and in-home energypanels, allowing them to makesmarter energy choices, manage theirenergy usage and save money.

From left, Miami Dade College President Eduardo Padron, Cisco Systems Chairman & CEO John T. Chambers,

FPL Group Chairman & CEO Lewis Hay III, GE Chairman & CEO Jeffrey R. Immelt and Silver Spring Networks

Chairman and CEO Scott Lang, each hold a Smart Meter during the announcement of the Energy Smart Florida

initiative at the Wolfson Campus of Miami Dade College in Miami, Florida, on Monday, April 20, 2009.



36/50


transforming a u.s. military base into a smart grid showcase

According to the 2009 Defense Appropriations

Act, United States military installations consumed3.8 billion kilowatt-hours of electricity last year enough electricity to power nearly 350,000households in the U.S. for a year. Energy costsfor these installations are high, and criticaldefense facilities must operate seamlesslythrough a power outage or other infrastructuredisturbance. These are two key challenges thata smarter, more intelligent grid managementsystem have the potential to address.

So the U.S. Department o Deenseengaged GE researchers in a $2 million

smart grid demonstration project at theTwentynine Palms Base in Caliornia,the premier training acility or Marineoperations.

Microgrids are localized energynetworks that can provide power tosel-contained areas like a militarybase or college campus. In the caseo military bases, power is typicallymanaged in two ways local poweris generated on-site or critical acility

needs and noncritical needs are pro-vided by the larger U.S. electrical gridnetwork.

As part o this project, GE will providean enhanced suite o microgrid con-

trol system technologies that will helpmilitary bases reduce their energycosts and urther enhance the energysecurity o their power system net-work. Additionally, GEs system willprovide enhanced capabilities orinstallations to integrate more renew-able resources, such as solar energyand uel cells, to help meet their elec-tricity needs and reduce their carbonootprints.

To develop the new demonstration projectat the Twentynine Palms Base in California,researchers at GE Global Research willdevelop and incorporate advancedalgorithms and computational decision

engines into a microgrid controller, whichis built by GE Digital Energy.



37/50


GEs frst available smart appliance the Energy Star GeoSpring HybridWater Heater works on two ronts,saving consumers money on waterheating costs and lowering a homescarbon dioxide emissions rom waterheating on the United States grid by62 percent* compared to a standard

50-gallon electric water heater. I25 percent o U.S. households purchas-ing a new electric water heater wereto choose GEs GeoSpring over a stan-dard 50-gallon electric water heater,we would avoid more than our billionpounds o CO2 emissions annually onthe U.S. grid equivalent to theannual CO2 emissions o approxi-mately 360,000 cars on U.S. roads.

Other smart appliances are in devel-opment at GE, including a rerigerator,double-oven range, microwave oven,dishwasher and ront-load washer anddryer. These appliances are designedto lower wattage or deer operation inpeak or high-energy usage and pric-ing times to save consumers money

and help utilities shed load. Consumerswill still have the ability to overridethese energy-saving or deerral eaturesas needed. This design approach the smarts seek out the best time tooperate and save money and theoverride eature preserves consumercontrol separates GEs in-home solu-tions rom other oerings in the past.

But steps are still needed to put energysavings control into the hands oconsumers. As outlined in a letter toPresident Obama signed by GE and46 other stakeholders, what is requiredbeyond the governments committed$4 billion nationwide smart gridinvestment are clear rules on

consumer access to inormation,incentives to promote the deploymento technologies and encouragemento diverse technologies.

Once the national smart grid is inplace, smart appliances must be readysimultaneously, and companiesshould enjoy incentives or their manu-acture and purchase to get there.

*Based on DOE test procedure and comparison of a

50gallon standard electric tank water heater using

4881 kWh per year vs. the GE GeoSpring Hybrid water

heater using 1856 kWh per year, and national average

residential electricity price of 10.65 cents per kWh.

make way for smart appliances

The time for smart appliances has come.

Smart grid enabled appliances alongwith smart meters and other in-homemeasures for consumers to track andcontrol their energy usage can havea major impact when implementednationwide.

charlene begley

senior vice president and

president and CEO, GE Home

& Business Solutions



38/50


introducing the geospring hybrid electric water heater

After air heating and cooling, water heating is

typically the largest energy use in a home. Ashomes are designed to be more energy efficient,the percentage of energy used to heat water hasbeen growing until now. The new GE GeoSpringhybrid electric water heater can cut residentialwater heater energy costs by more than half.

By utilizing heat pump technology in

combination with traditional electricelements, the GeoSpring pulls heat romsurrounding air and transers it to thewater tank. This innovative processcreates the same amount o hot wateras a traditional electric water heater,but can reduce energy expenses up to62 percent.* Such a reduction canhave a dramatic impact on both utilitybills and the environment.

The GeoSpring eatures a userriendly

electronic control system that oersboth simplicity and exibility. It gives

consumers as much or as little control

o operating modes as they like, lettingthem set the thermostat and orgetit or easily change the desired watertemperature or operating mode tomaximize energy efciency.

*Based on DOE test procedure and comparison of a

50gallon standard electric tank water heater using

4881 kWh per year vs. the GE GeoSpring Hybrid water

heater using 1856 kWh per year, and national average

residential electricity price of 10.65 cents per kWh.

The new GE GeoSpring hybridelectric water heater can cut

residential water heater energycosts by more than half.

GEs Procy Process Systems provides YMKrishna with a control system to reducestartup time and production downtime, aswell as improvement in energy efciency

and less dependence on human factors.



39/50


energy-efcient homes of the future

The energy-efficient home of the future will

generate as much energy as it typically usesover the course of a year. This energy will begenerated through renewable sources such aswind and solar power, and used for functionssuch as lighting, appliances, heating andcooling. These homes will be highly insulatedand energy efficient, even before taking intoaccount their renewable energy sources.

GE has invested over several yearsto develop products that can assistbuilders and homeowners in thedevelopment o these homes. Theseproducts include:

High-efciency water heaters.GEs gas tankless water heater andGeoSpring hybrid electric waterheater each deliver signifcant energy

savings versus standard tankvarieties.

Smart appliances. Currently underdevelopment, GEs new smart appli-ances are designed to communicatewith smart meters, which are being

deployed by local utilities across thecountry to work as part o time-o-use pricing structures or consumers.

Energy management. GE is currentlydeveloping home energy manage-ment tools to enable consumers tounderstand and manage their dailyhousehold energy usage, includingusage trends over time.

These products are an important steptoward the widespread deploymento technology or tomorrows energy-efcient homes.

The GE energy-efcient home of the future willgenerate as much energy as it typically uses over the

course of a year, through renewable sources such aswind and solar power, and it will be used for functionssuch as lighting, appliances, heating and cooling.



40/50


ge led solutions for starbucks

Next time you visit your local Starbucks, take a

closer look at the lighting. GE developed a newLED lighting solution that has helped Starbucksreduce energy consumption as part of itscommitment to environmental stewardship.

In 2008, Starbucks explored the substi-tution o incandescent and halogen

lighting with LED lighting, but ound nocommercially available LED productthat met its aesthetic and unctionalrequirements. As a result, Starbucksreached out to GE to identiy a solution.With input rom Starbucks about itsspecifc needs, GE developed a highlyenergy-efcient LED product that com-plements the Starbucks store designapproach and fts existing fxtures.

Starbucks began implementing its

LED lighting conversion program in2009, and had completed installationin more than 1,000 stores in the U.S.as o September, resulting in an annualsavings o more than 13.5 million kWh

o electricity. This avoids the emissionso more than 8,100 metric tons o CO2

per year on the U.S. grid, equivalent tothe CO2 emissions o approximately1,600 cars on U.S. roads.

Starbucks plans to expand the programto international locations, aiming tocomplete installation in more than8,000 company-owned stores aroundthe world by the end o 2010. Followingglobal implementation, Starbucksprojects a 7 percent per store reduc-tion in electricity use. This improvement

will contribute toward the companysgoal o reducing energy consumptionby 25 percent in company-ownedstores by the end o 2010.

Since implementing its LED lighting c onversion

program, Starbucks has seen more than 13.5 millionin total annual kWh savings.



41/50


Each year, airlines burn nearly three-quarters o a billion gallons o jet ueljust waiting or their turn to take oand land. Thats nearly seven millionmetric tons o CO2 released into theatmosphere because o delays on theground.(1) GE is using sotware devel-oped in-house to get all that hardware

back into the air.

GE Aviation TrueCourse can get moreplanes in and out o airports aster bysorting incoming and outgoing ightswith greater precision and by plottingight paths that maximize uel econ-omy and minimize noise pollution. OurNextGen ight management systemsare one way were helping the U.S.Federal Aviation Administration

achieve its ambitious goal o reducinggreenhouse gas emissions rom air-crat by 12 percent by 2025.

While railroads have made remarkableimprovements in uel efciency, thenext rontier o clean rail transporta-tion is logistics management. GE

Transportations RailEdge

movementplanner (2) is a breakthrough technol-ogy designed to improve railroadcapacity and eiciency, ultimatelysaving time and money. The GE tech-nology can predict expected trackusage patterns based on historicaldata to produce the most efcientplan, giving dispatchers the real-timeinormation they need to make opti-mal decisions in a matter o seconds.

RailEdge is demonstrating that i ullyimplemented across an entire railsystem, it can achieve two-to-ourmile-per-hour increases in velocity.One mile per hour in velocity improve-ment has the potential to saveapproximately $200 million in capitaland expense annually.

The promise o ecomagination is thatGE and its customers can grow andbe proftable while solving the worldsmost challenging environmental prob-lems. Were realizing that promise alittle more each day through our cleantransportation initiatives, where thekey to cleaner transportation is thepowerul combination o hardwareand sotware.

(1) http://cleantech.com/news/2880/air-trafc-delays-

wasting-money-and-fuel

(2) Undergoing ecomagination product qualication

in 2010.

software is the key to cleaner transportation

Moving people and freight around

quickly and efficiently is as much amatter of brainpower as horsepower.Our aircraft and locomotive enginesare among the most fuel efficient inthe world. But how do you make alltrains and planes more efficient?

Thats a job for applied intelligence.

john rice

vice chairman and CEO,

GE Technology Infrastructure


42o uc s o i susin ss ov vi w


42/50


realizing savings through an improved eet plan

AmeriPride, a leading service provider of uniform

rentals and commercial laundry, recognizedthat a carefully developed and executed fleetplan could offer double-digit improvements inovertime costs, workforce productivity, carbonemissions and fuel cost savings. So they broughtin GE Capital Fleet Services to assist in analyzing,designing and executing a fleet plan includingservices such as vehicle replacement, telematicsand fleet administration.

Our goal in working with GE was tosave money, increase efciency andslash emissions, said AmeriPride CEOBill Evans. We are very conscious oour impact on the environment, butwe also saw this as a smart businessdecision.

The results have exceeded the expecta-tions o Evans and other top manage-ment. During a pilot conducted in 2009,the company realized a 40 percentreduction in uel costs and CO2 emis-sions related to idling and inefciencieso older vehicles. Once extended acrossthe entire eet, this could represent apotential uel savings o $640,000 anda reduction o over 6,800 metric tonso CO2.

Currently, the company is in the processo replacing 1,800 vehicles in the U.S.and Canada with newer, more uel-efcient vehicles. They are right-sizingtheir eet so vehicle size and powermatch but do not unnecessarilyexceed business needs. This eortalso includes the addition o hybrid

vehicles. So ar, AmeriPride has replaced700 vans and is testing 10 hybridvehicles in a pilot program that couldeventually grow to a eet o 50.

We are on track to meet our goals,says Evans. By 2020, we expect savingsto exceed $3 million and carbon dioxideemissions to drop by 33,000 tons.

GE Capital Fleet Services is assisting AmeriPridein analyzing, designing and executing a eet plan

including services such as vehicle replacement,telematics and eet administration.


432009 annual report nextpreviousour progress product storiesbusiness overview


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theres no better way to y

When passengers fly Southwest Airlines,

they expect the friendly faces and comfortableatmosphere for which the company has becomerenowned. But what they may not know is thatbehind the smiles and brightly colored aircraftis a revolutionary technology that helps theirflight arrive on time and with a lowerenvironmental impact.

As the frst customer to adopt a eet-wide integrated ight deck solution

rom GE Aviation Systems, Southwesthas positioned itsel as a leader inair trafc management. Southwestsleet o Boeing 737s eature GEsadvanced ight management system,TrueCourse, which enables aircratto use less uel and reduce emissionsand noise. GE technology also helpsto keep the aircrat on track to within100 meters. It can precisely calculatethe time o arrival to within 10 secondsat any point on the ight plan, helping

passengers get where they need togo, when they need to go.

GEs ight management system isa key part o our plans to conduct

Required Navigation Perormance(RNP) operations, commented MikeVan de Ven, executive vice presidentand chie o operations or SouthwestAirlines. It allows us to realize signif-cant cost savings with lowered uelconsumption while simultaneouslylowering our impact on the environ-ment through reduced emissions. GEstechnology is key to the success oSouthwest Airlines implementationo RNP and our partnership with the

FAA to advance NextGen airspace.

GEs advanced ight management system, TrueCourse,enables Southwest aircraft to use less fuel and reduceemissions and noise.




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introducing powerhaul locomotives to the united kingdom

In November 2009, Freightliner Group Ltd. and

GE Transportation announced the launch ofthe first PowerHaul locomotives to the UnitedKingdoms rail freight market. This launchrepresented GE Transportations first locomotivecustomer in the United Kingdom and Europe.

One o GEs most technologicallyadvanced locomotives, the PowerHaulis designed to provide signifcant uel

savings compared to other heavy haul,lightweight engines in use today. Itstraction control technology also allowsit to carry heavier loads by signifcantlyreducing slippage on start-ups,inclines and poor track conditions.

One of the new locomotives arrives viaship in South Wales, U.K.




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It will also be a place where patients responding to improved air, naturalelements and streamlined staresponses can be happier, healthierand recovering aster.

The United States Green BuildingCouncil (USGBC) outlined standards orhospitals to improve their operationsand environmental impact as well as

how to measure successul implemen-tation. Hospitals can use three timesthe energy o a commercial building,and commercial buildings accountor 30 percent o U.S. energy usage,according to the USGBC.

A conservation-minded hospital iscapable o making a real impactwhen replicated worldwide. A 200-bedhospital that reduces its energyconsumption by 16 percent reducesgreenhouse gas emissions equivalentto the annual CO2 emissions o approxi-mately 300 cars on U.S. roads. Beyondthese emissions reductions are a hosto other benefts, including signifcant

water savings, improved air quality andreduced paper use. Green hospitalsalso report that better air quality anduse o technology can lead to improve-ments in both patient and stasatisaction and overall workow.

green hospitals

With the right design and environmental

consciousness, hospitals can reachtheir full potential as places best suitedto healing. A green hospital is onethat will strive to reduce energy costs,greenhouse gas emissions and waste.

john dineen

president and CEO,

GE Healthcare

In July 2009, GE announced a green hospital partnership with Asklepios HospitalGroup focusing on designing energy efcient healthcare facilities. The aim i s todevelop and deploy technology to reduce energy usage, conserve water, generaterenewable energy on-site, maintain air quality, reduce waste and increase staffproductivity of hospitals.

From left to right: Jeff Immelt; Dr. Rolf Lucas, President & CEO, GE Healthcare in Germany; background, a bit

covered: Dr. Wolfgang Sittel, Head of Architecture & Construction, Asklepios Group; Dr. Tobias Kaltenbach,

CEO, Asklepios Group; Dr. Carlos Hrtel, Head of GE Global Research Europe.




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high-efciency mr scanners

With demand for quality healthcare on the

rise, hospital systems in China are looking forinnovative and cost-effective solutions to helpthem provide high-quality care to a largepopulation. For Dr. Jin Zhengyu, Director ofPeking Union Medical College Hospital (PUMC),GE Healthcares 1.5T Signa HDe MR scanner wasan excellent fit, reducing power consumptionand lowering environmental impact withoutcompromising image quality.

The Signa HDe was the frst healthcareproduct to join ecomaginations prod-uct portolio and is now part o GEHealthcares amily o high-efciencyMR scanners. Compared with previousgeneration systems, these scannerscan, under normal operating conditions,reduce power consumption by a third,

saving 60,000 kWh o electricity peryear equivalent to the annual elec-tricity consumption o about 13 urbanChinese households. Along with sav-ings, high-efciency MR scanners havea signifcantly lower need or heliumreflls, which potentially could urtherreduce operating costs and lessentheir impact on the environment.

We have more than 150 patientsper day receiving MR examinations,which can be quite a challenge, saidDr. Jin Zhengyu. The Signa HDe pro-vides good image quality and allowsus to scan more patients, as well ascut the operating time or each patient.It also consumes much less power

and has relatively no helium losscompared to our other MR systems.These benefts add up to signifcantcost savings each year.

Patient prepares for a scan in the Si gna HDe.




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digital x-ray machines reduce consumptionwhile lowering costs

Todays healthcare facilities face mounting

pressure to conserve financial resources andreduce their environmental footprint withoutcompromising high-quality patient care.

GE Healthcare has developed a amilyo digital X-ray machines that, com-pared with traditional flm-based X-rayequipment, can reduce the consump-tion o resources such as energy,

water, flm and chemicals, increasingproductivity while lowering operatingcosts. GEs newest digital X-ray oer-ing is the Brivo DR-F, launched in2009* to answer environmental andeconomic concerns without compro-mising quality o patient care.

For acilities evolving rom analog todigital technology, Brivo DR-F providesa compact, aordable solution thatdelivers outstanding clinical capability

and helps eliminate the cost and

waste associated with flm processing.Replacing two GE analog X-ray roomsand a flm processor with one BrivoDR-F room could reduce energyconsumption by over 70 percent , also

reducing physical space requirementsby more than 40 percent all whilemaintaining imaging volume. The useo digital X-ray also eliminates theneed to store 50,000 flms per year, andcan save customers 156,000 gallonso water and 1,900 gallons o fxerand developer used with analog flmprocessing.

*Brivo DR-F is available in China, India, EAGM,

Latin America and some countries in Eastern Europe

and the Asia Pacic region.

GEs newest digital X-ray offering is the BrivoDR-F, launched in 2009 to answer environmental

and economic concerns without compromisingquality of patient care.




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The mission is to raise green aware-ness, activate consumers and helpgreen the companys own operations.

To green the entertainment industryrequires a strategic but detailedapproach. Over the last ew years,weve worked to identiy and address

our productions environmental oot-prints including the materials andenergy used and waste output whenproducing a TV series or flm. We havethen implemented changes that helpreduce those loads at every level: romoering reusable water bottles andrecycling bins to constructing sets withsustainable wood and ueling vehicleswith biodiesel. Collectively, thesemeasures can add up to a substantialreduction in our environmental impact.

By taking a holistic view, the entertain-ment industry can make environmentalresponsibility part o its behind-the-scenes culture, not merely a case-by-case consideration and the industry ismoving in that direction. NBC Universalhas taken a leadership role in thiscommitment and acilitated the tran-

Ge 2009 Eco Magi Nation Report

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Transcript of Ge 2009 Eco Magi Nation Report