OREANDA-NEWS. December 13, 2012. Facing soaring diesel fuel prices and intense competition in India’s two-wheeler sector, the Honda Motorcycle & Scooter India Private Limited (HMSI) factory in Manesar in the state of Haryana has installed two of GE’s (NYSE: GE) ecomagination[1]-qualified, natural gas-fired Jenbacher cogeneration units that use less expensive natural gas to generate 4 megawatts (MW) of reliable on-site power. HMSI is a wholly owned subsidiary of Honda Motor Co., Ltd. Japan.

HMSI installed the Jenbacher units to lower energy costs at the flagship Manesar factory as the company prepares to dramatically expand production in India. The Manesar facility opened in 2001 and manufactures about 1.6 million scooters and motorcycles annually. HMSI’s Tapukara plant produces 1.2 million units while a third factory under construction at Bangalore will produce another 1.2 million units. HMSI aims to build up its capacity to 10 million two-wheelers annually by 2020.

The Manesar factory has a total power requirement of about 14 MW, and in order to ensure reliable power supply, HMSI originally installed a battery of 1-MW diesel generators to supply the factory’s power. However, in 2011, to counter soaring diesel fuel prices, HMSI decided to replace four of the diesel generators with GE’s more efficient, natural gas-fueled CHP units.

GE’s two, 2-MW Jenbacher J612 combined heat and power (CHP) units were commissioned in March 2012, replacing four of the factory’s existing 1-MW diesel generator sets. HMSI’s cost of generating power by using the Jenbacher units (in waste-heat recovery mode) is an estimated Rs. 6.50/per unit compared to the previous diesel generator cost of about Rs. 12.00/per unit—a savings of about of Rs. 5.50/per unit, or a 45.8 percent reduction.

“We installed our GE cogeneration units to reduce our Manesar factory’s energy costs and ensure we have a more cost-effective and secure supply of power and heat to help meet our production requirements,” said HMSI Manesar Plant Head Vinay Dhingra. “GE’s technology has the proven record of efficiency, reliability and availability to help us achieve our growth strategy of becoming the largest two-wheeler manufacturer in India by 2020.”

By installing GE’s cleaner-burning gas engines equipped with modern exhaust controls, HMSI also has reduced the industrial greenhouse gas emissions by 48 percent. The Jenbacher CHP units also operate continuously and have dedicated exhaust gas-fired boilers that produce steam, allowing HMSI to replace its costly HSD fuel-fired boilers.

“Our project with Honda Motorcycle & Scooter India demonstrates how our Jenbacher cogeneration technology can achieve an overall efficiency of 61 percent to support our customers’ economic requirements while giving them the peace of mind that comes with having a more reliable and cost-effective power supply,” said Gurumurthy Santhanakrishnan, regional sales leader India—Gas Engines for GE Power & Water.

Clarke Energy India Private Limited, GE’s authorized Jenbacher gas engine distributor in India, supplied the CHP units to HMSI. GE's Jenbacher CHP systems are part of GE’s ecomagination portfolio. To qualify for the portfolio, products and services must demonstrate both improved economic value and environmental performance.