OREANDA-NEWS. February 26, 2016.  GE’s Distributed Power business (NYSE: GE) today announced that China’s leading drill rig manufacturer HongHua Group Ltd. (HongHua) (00196.HK) has completed commissioning of the first three Waukesha mobileFLEX gas engines that are powering a 5,000-meter deep drill rig for new shale gas projects located near Deyang City in Sichuan Province in China. The country is seeking to boost its production of unconventional gas supplies to meet Asia’s growing energy needs.

The first three Waukesha units were commissioned in August 2015 as part of a nearly 3-megawatt (MW) on-site power demonstration project between HongHua Electric, a subsidiary of HongHua Group Ltd., and rig owner Sinopec, which are evaluating the use of the natural gas-fueled Waukesha units as an alternative to diesel engines. The project marks GE’s first deployment of its Waukesha mobileFLEX engines for a drilling application outside the U.S.

The demonstration project is the result of a multiyear frame agreement that HongHua signed with GE in 2014 to use the company’s Waukesha engines to provide reliable power for its drilling rigs. Headquartered in Chengdu, Sichuan, HongHua is the largest exporter of drilling rigs in China and one of the largest land drilling rig manufacturers in the world. 

“We are always looking to incorporate new technologies like GE’s Waukesha mobileFLEX gas engine systems that add value to our drilling rigs for our customers,” said Mi Zhang, the president of HongHua. “We are pleased to support China’s efforts to reduce industrial greenhouse gas emissions by demonstrating the economic and environmental benefits of using the Waukesha units as a cost-effective alternative to diesel gen-sets in our rigs.”

Using the Waukesha units, HongHua’s customers can utilize locally sourced natural gas to fuel the engines instead of relying on diesel fuel that needs to be transported over long distances to drilling sites.

“With environmental regulations in China and other countries becoming tighter, drilling rig operators are increasingly turning to cleaner-burning natural gas solutions in their drilling rigs as an alternative to traditional diesel gen-sets,” said Bright Yin, regional sales leader for China for GE’s Distributed Power business. “This demonstration project with HongHua Electric and Sinopec is showcasing the benefits of our Waukesha mobileFLEX gas engines as a cost-effective option for drill rig operators in the global unconventional gas sector.”

As more countries seek to develop their domestic energy resources and increase their local energy independence, GE’s Distributed Power business offers a comprehensive portfolio of natural gas and diesel engine solutions to help operators meet their on-site power, mechanical drive and gas compression requirements in the field.

About GE

GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

About GE Power

GE Power is a world leader in power generation with deep domain expertise to help customers deliver electricity from a wide spectrum of fuel sources. We are transforming the electricity industry with the digital power plant, the world’s largest and most efficient gas turbine, full balance of plant, upgrade and service solutions as well as our data-leveraging software. Our innovative technologies and digital offerings help make power more affordable, reliable, accessible and sustainable.

For more information, visit the company's website at www.gepower.com.

About GE’s Distributed Power business

GE’s Distributed Power business is a leading provider of engines, power equipment and services focused on power generation and gas compression at or near the point of use. Distributed Power offers a diverse product portfolio that includes highly efficient, fuel-flexible, industrial gas engines generating 200 kW to 10 MW each of power for numerous industries globally. In addition, the business provides life cycle support for more than 36,000 gas engines worldwide to help you meet your business challenges and success metrics—anywhere and anytime. Backed by our authorized service providers in more than 170 countries, GE‘s global service network connects with you locally for rapid response to your service needs. GE’s Distributed Power business is headquartered in Jenbach, Austria.

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