OREANDA-NEWS. January 31, 2013. GE (NYSE: GE) has signed landmark service agreements with Shanghai Caojing Cogeneration Co., Ltd. that include GE’s first contractual service agreement (CSA) extension in China and the first Dry Low NOx (DLN) 2.6+ combustion system upgrade for an installed 9FA 3-series gas turbine in Asia. The deal is accompanied by a strategic cooperative agreement that GE has signed with Shangdian Power Engineering Company. Shanghai Electric Power Co., Ltd. owns both the Caojing power plant and Shangdian Power Engineering.

“We are impressed and pleased with the high-quality support GE’s local services team has provided to our facility under our first CSA and look forward to maintaining that level of excellence during the next several years as the service extension takes effect,” said Mr. Zhuang Qingquan, general manager of Shanghai Caojing.

The service agreements cover two GE 9FA 3-series gas turbines at Shanghai Caojing’s 790-megawatt combined-cycle power plant that supplies power and steam for the Shanghai Chemical Industry Park, one of the largest petrochemical bases in Asia. The park sells additional electricity to local grid operators. The CSA extension covers maintenance for the next eight to 10 years and marks the first time a GE customer in China has extended a CSA for a second maintenance period.

GE CSAs provide predictable maintenance costs, high availability, reliability and a steady flow of revenue from plant operations. This agreement will better position the Caojing plant to benefit from long-term high performance and GE’s latest technology and global experience. To date, GE has long-term agreements in place at more than 700 sites worldwide.

GE’s DLN 2.6+ upgrades will enable the Caojing plant, the largest cogeneration facility in Shanghai, to operate at low NOx emissions levels of 10-15 parts per million (ppm), compared to current levels of 25 ppm. DLN 2.6+ is the most advanced combustion system for GE’s 9F gas turbine fleet and incorporates technology to improve stability, reduce emissions and turndown and extend outage intervals. The upgrades include AutoTune, an advanced controls solution from GE’s OpFlex* suite that provides real-time tuning and boundary control for greater flexibility for the gas turbines.

The equipment for the first DLN 2.6+ upgrade will be shipped in October 2013, with the equipment for the second upgrade scheduled to ship in January 2015.

The strategic agreement between GE and Shangdian Power Engineering Company will further strengthen cooperation and discussions between the two companies in fields such as power generation, energy savings, environmental protection, industrial electrification and automation. It also will foster additional collaboration on the inspection and maintenance of gas turbines, generators and auxiliary equipment.

“These agreements are exciting milestones for our China team and reinforce GE’s commitment to provide full life cycle service solutions to our customers in the country and across Asia,” said Yang Dan, Asia general manager of GE’s Power Generation Services business. “Shanghai Caojing will benefit from ongoing access to GE’s advanced technology, which will help the site maintain its long-term competitive advantage in the region.”