Green is a Business Opportunity

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• Green is a Business Opportunity
• 2008 Business Future of America's Conference
• Lorraine Bolsinger
• June 27, 2008

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Challenges Opportunities
Gross Domestic Product
Resource Scarcity 1B watergrows to 5B Raw
material inflation
Energy Security Cost Increasing demandfossil
fuels under pressure Flat worldwealth disparity
Regulation Near consensus on climate change
legislation nearly certain
G7 Countries
E7 Countries
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Impacting Our CustomersB2B
Operations - Resource Costs
Human Resources - Employee Attitudes
Demand Growth
EHS, Govt. Relations - Regulations
Communications - Public Opinion
Resource Constraints
RD, Marketing - Market Demand
Strategy, Finance - Risk Uncertainty
Every function involved
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Global Recognition
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GDP?CO2?
USA
EU
Japan
2.0 1.5 1.0 0.5
Indexed Growth
India
FSU
China
1980 1990 2000 2005
per-capita GDP
CO2 emissions
How do we de-couple?
Modified Source Raupach, Michael R. et al.
(2007) Proc. Natl. Acad. Sci. USA 104, 10288-10293
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CO2 legislation/carbon cost inevitable
Global tons carbon/yr (billions)

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1B tons of carbon/year
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Projected growth

• 7 wedges required
• 16 wedges identified
• GE plays big in 12 of 16

Historical
7
0
2055
2005
Source Princeton Univ.
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GEs big plays
Low carbon power
Efficiency
Low carbon fuels
CO2 Capture
Buildings
Renewables
BP H2 Joint Venture Synfuels Technology
Wind Turbines Solar Power Biogas Engines Energy
Finance
Water Treatment Appliances Lighting
Biomass
Energy Finance Water Treatment
Transport
Natural Gas
Large-Frame Turbines LM Turbines
Aircraft Engines Locomotives
Fuel Cell H2
Base Load
Coal Plants
Forests agriculture
Energy Services Water Treatment
IGCC Cleaner Coal ESBWR Nuclear
Broad participation in carbon management
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ecomaginationa business strategy

1. Grow revenues to 20B
2. Double RD to 1.5B
3. Reduce GHG
4. Inform public

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Revenue20B by 2010
25B
Revenues (B)

• Eco products in every business
• Cross-business offerings
• Green hospital
• Eco homes
• Waste water-to-value

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21
20B Rev by 09
20 CAGR
17
14
11
9
'05
'06
'07
'08
'09
'10
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RD1.5B by 10
RD Investment (B)

• gt1B clean tech fund
• Product portfolio
• 05-07 17 60
• Future Technologies
• CO2 capture
• Zero liquid discharge
• Alternative fuels
• Waste to Energy
• Demand Side Mgt

1.5
1.4
1.2
1.1
0.9
0.7
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Lower Emissions Energy

• Beating all emissions energy targets
• 700 kT CO2 reduced
• (-8) from 04
• 100 MM 07 energy savings
• Engaged teams
• Lean, Treasure Hunts GE solutions

CI Biomass Waste Heat Recovery
Gas engine waste heat Biomass heat Compressor
waste heat Out of service blds.
Hungary
Jenbacher Gas Engine
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Outreachpublic policy influence
Legislation
Advocacy
EU Korea Middle East
Thought-Leadership
Friedman
Schwarzenegger
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OutreachPR impact
Press
Award-winning ads Website
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Time to step-up5th goal

• Adding a fifth goal20 water use reduction
  06-12
• Highlight the growing issue and opportunities for
  savings
• Influence potential industry standards
• Showcase our customers GE sites

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Business impact
Brand
Reputation
Scale
Revenue (millions)
Rank
Company
172 Avnet 14,254
173 ConAgra Foods 14,172
174 Fluor 14,079
176 Chubb 14,003
177 Enterprise GP Holdings 13,991
178 Qwest Communications 13,923
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Green is a Business Opportunity
From energy to real estate, businesses are facing
the very real opportunities and challenges of
climate change and the environment
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Waterportfolio approach
Desalination Solutions
Product Water
Residential Products
Municipal Solutions
Utility Solutions
Industrial Wastewater
Process Chemicals Separations
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Watercreating new sources
1 Billion people are impacted by water scarcity
today5 Billion by 2025

Sulaibiya plant in Kuwait City Water produced for
irrigation Frees up fresh water for human
consumption 375,000 cubic meters/day Worlds
largest membrane based wastewater filtration
project
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Waterhelping industry

• Beverage Manufacturing
• GE installed 28 systems that recover 50-70 of
  reject/brine
• Customers include
• 28 systems recover more than 750 million gallons
  per year

• Cadbury-Schweppes
• Niagara Water

• Nestle
• Coca-Cola

• Nor-Cal Beverage
• Pepsico

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Energydiverse portfolio to meet any outcome
Gas
TD
Nuclear
Wind
Solar
Environmental Services
Asset Optimization
Biomass
Cleaner Coal
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Wind
Industry installation forecast
Products
(GWs)
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1.5 MW platform
ROW 2
Asia Pacific32
2.5 MW platform
North America 29
15.0
7.8
Europe 37
3.6 MW offshore
6B in 08
03
09E
06
Source BTM Consult, March 08
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Wind most economic large scale renewable
Cost of Electricity nearing mainstream
Cost of Electricity (/kWh)
20 year levelized
20
30
US per kWhr
15
10
8
7.5
8.0
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Coal
Nuclear
Biomass
Solar
Wind
Gas
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Basis 8.00/MMBtu NG

• Fixed cost of electricity
• Energy security
• Zero air emissions

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95
85
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GE Company Proprietary
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Solar
Research development key
Solar America initiative
Cost-shared, three-year cooperative agreement
with the U.S. Department of Energy
Today
Integrated systems On and off-grid applications
Tomorrow

• Optimize
• Material science
• Increase efficiency
• Value chain

Technology driving cost of electricity
Thin film investment
Minority equity interest in emerging thin film
company, PrimeStar Solar, Inc.
And beyond

• Breakthrough technology
• Thin film
• Nano scale materials

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Biomass
Bio power growth
Global installed capacity (GW)
16
Asia rest of world

• Efficiency, reliability
• fuel flexibility
• 0.25MW to 4MW
• 8,000 units installed
• 2,600 biogas, landfill sewage gas

Europe
3.5
U.S.
'02
'20
Source FrostSullivan
Gas engines
(Unit volume)
1200
480
03
07
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Fuel options
Keeping costs down by using readily available
resources diversity of supply and increasing
efficiency
Fossil fuels natural gas and oils
Synthetic industrial lower caloric value
Biofuels Biodiesel and ethanol
Flexibility in aviation, marine, gas engines,
turbines and locomotive
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Energycleaner, greener steel

• Jenbacher Gas Engines
• Utilize waste gases for cogen
• Maximize CO2 fuel efficiency

• Blast Furnace Gas
• Frame 9E gas turbinefuel flexibility
• Reduce 2MM tons CO2
• 2.4B kWh of electricity/year
• 160 tons of steam/year

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Cleaner energygreener steelin the news
The market value of these carbon credits is
estimated at 150 million euros. Fulvio Conti,
Enel CEO, said the company purchased the credits
at about 8 euros per ton The reduction of CO2
emission will be achieved through five
energy-efficient projects, including combined
cycle power plant, in which the waste heat is
used to generate additional electricity, thus
enhancing the efficiency of electricity
generation.
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Waste to Value
Brewery Example

• Solution
• Recycled wastewater conserves fresh water intake
  and reduces disposal costs
• Biogas generation reduces electricity and
  natural gas expenses
• Renewable credits derived from clean power and
  recycled water
• Potential Impact
• Recovered water gt94
• CO2 reduction 13,000 tons/yr
• Biogas generation 400 kW
• Anticipated Payback 3-4 Years

ZeeWeed Membrane Bioreactor
Jenbacher Bio-gas Engine

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Gasificationcleaner trash
Market

• 2.3MM tons/day of MSW worldwide, growing to 5.1MM
  tons/day by 2020
• 125B market needs alternatives to landfill and
  incineration
• Large GHG/CO2 market opportunity

Process

• High Temperature Gasification (1500C)
• 2501 volume reduction
• Syn Gas converts to chemical feedstock, liquid
  fuels, or electricity
• Energy positive 900 kWh/ton, 15-20
  electricity need

High Energy Electrical Plasma Breaks Down
Hydrocarbons into Fundamental Constituents
Recycled Metals from Gasifier
Vitrified Slag Unrestricted Use
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Financial services
Verification

• Carbon management
• GE AES Greenhouse Gas Services
• Global market 1-5B by 12

3 Billion Renewable Energy Portfolio

• Projects
• 6B by 10

Geothermal 2
Solar 6
Biomass 5
Venture Capital 1
Hydro 6
Wind 80
7000 MW
Market Segment Diversity
Oil Gas Technology (5)

• Energy Tech Equity
• Diverse technologies, sectors, geography
• A step toward partnership

Energy Efficiency (11)
Smart Grid Technologies (8)
Battery Technologies/ Energy Storage (30)
Renewable Energy (46)
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Customer collaborations
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Green is a Business Imperative
Any company that develops technologies based on
a lower carbon footprint and on the
more-efficient use of scarce resources will have
greater access to and acceptability in the
markets that will develop across the world
Dr. Rajendra Pachauri Chairman, IGPCC
2007 Nobel Peace Prize recipient
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