OREANDA-NEWS. April 12, 2016. GE (NYSE: GE) announced a deal with China Machinery Engineering Corp (CMEC) to supply two 330-megawatt (MW) boilers to Engro Powergen Thar (Private) Limited, CMEC’s joint venture with Pakistan companies for the Thar Block II Power Plant. The deal will support Pakistan’s move to use its ample coal reserves in the Thar Desert to meet power generation needs, spur economic development and bring energy security to the country.

Pakistan relies heavily on imported crude oil, diesel and natural gas with very limited energy coming from coal-fired power plants. The Thar II project supports the government of Pakistan’s energy independence as it moves to increase domestic coal use. Through GE’s recent acquisition of Alstom Power, two GE circulating fluidized bed (CFB) boilers will help deliver a total of 660 MW to Pakistan while burning the local high-moisture lignite reserves of the Thar field. The CFB boilers operate at a low combustion temperature to minimize the amount of nitrogen oxides released, providing coal-rich markets with the opportunity to reduce emissions and operating costs while increasing output.

CMEC and three local companies are jointly developing the Thar Block II plant, which represents growing cooperation along the China-Pakistan Economic Corridor (CPEC). A syndicate led by China Development Bank under the coverage from Sinosure, China’s Official Export Credit Agency, participates in financing the project, with the support from local governments. The Thar Block II Power Plant will be powered by coal from Thar Coalfield—the country’s first project fired with Pakistani Thar lignite. GE is a technology leader in the CFB boiler field, with proven experience burning reliably high-moisture lignite. GE will manufacture all the boiler pressure parts at its own factory in Wuhan, China.

GE’s manufacturing base in Wuhan, China, is the company’s largest boiler manufacturing facility, with one-third of the products for export. It has the capacity to produce large CFB boilers and other high-efficiency boilers in the 600- to 1,000-MW range. GE’s strategic customer, CMEC, is a leading Chinese engineering, procurement and construction company. GE works with CMEC to export gas and hydro power projects from China.

The China-Pakistan Economic Corridor is a major development megaproject intending to connect Port Gwadar in southern Pakistan to Xinjiang, China’s northwestern autonomous region, through transportation and energy networks. This economic corridor is a major priority for both the governments of China and Pakistan and is an extension of China’s proposed 21st century Silk Road initiative.

“We are very proud to contribute to this significant project for the China-Pakistan Economic Corridor, with strategic Importance for reliable use of local Pakistani lignite for power generation, while showcasing our state-of-the-art and highly competitive boiler technology to customers and lenders. With our leading technology and global know-how, we are committed to offer optimized and reliable solutions to customers and support long-term development of local energy industry and local economy,” said Andreas Lusch, president of GE Power’s Steam Power Systems business.

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