Saudi Ce­ment and GE Power sign deal to in­crease power ef­fi­ciency

The Gulf Today - Business - - REGION -

RIYADH: Saudi Ce­ment has signed an agree­ment with GE Power for the up­grade of three GE 6B gas tur­bines at its Ho­fuf plant to in­crease power out­put and ef­fi­ciency. The deal rep­re­sents the first time that GE Power’s Ad­vanced Gas Path (AGP) so­lu­tion will be im­ple­mented to strengthen power gen­er­a­tion pro­duc­tiv­ity for a ce­ment in­dus­try glob­ally. The project, built on the two or­ga­ni­za­tions’ long-term col­lab­o­ra­tion, will help Saudi Ce­ment in­crease power out­put and ef­fi­ciency, while re­duc­ing the need to draw power from the na­tional grid, in sup­port of the King­dom’s drive to­wards greater eco­nomic di­ver­si­fi­ca­tion un­der Saudi Vi­sion 2030.

CEO of Saudi Ce­ment, Mo­hammed Al­garni said, “Power sup­ply is both a key in­put, as well as one of the ma­jor costs in our man­u­fac­tur­ing process. Re­li­able, ef­fi­cient elec­tric­ity sup­ply is thus es­sen­tial for the con­tin­u­ous op­er­a­tions of our fa­cil­ity, as well as our mar­ket com­pet­i­tive­ness. GE Power’s Ad­vanced Gas Path up­grade so­lu­tion will al­low us to im­prove ef­fi­cien­cies and be­come more self-suf­fi­cient in power pro­duc­tion.”

“As a re­gional pi­o­neer in the man­u­fac­ture and sup­ply of high qual­ity clinker and ce­ment, Saudi Ce­ment has played a vi­tal role in the de­vel­op­ment of con­struc­tion projects across the Mid­dle East for more than half a cen­tury. We are de­lighted to sup­port their con­tin­u­ous jour­ney of op­er­a­tional im­prove­ments and to con­trib­ute to­wards the strength­en­ing of the King­dom’s in­dus­trial base,” said Joseph Anis, Pres­i­dent & CEO of GE’S Power Ser­vices busi­ness in Africa, In­dia and the Mid­dle East.

HO­FUF PLANT

“The up­grades of the gas tur­bines at Ho­fuf Plant will not only help achieve ef­fi­ciency and out­put im­prove­ments but also ex­tend main­te­nance in­ter­vals and lower emis­sions, to the ben­e­fit of Saudi Ce­ment and the wider com­mu­nity.”

The up­grades are ex­pected to com­plete by the third quar­ter of 2018. They will help to en­hance ef­fi­ciency by up to 3.3 per cent per tur­bine, con­tribut­ing to­wards the Saudi Na­tional Trans­for­ma­tion Pro­gram 2020’s goal of im­prov­ing fuel util­i­sa­tion in elec­tric­ity gen­er­a­tion to 40 per cent by 2020.

GE has over 80 years of part­ner­ship in the King­dom with over 4,000 em­ploy­ees, in­clud­ing Baker Hughes, a GE com­pany. With nearly 50 per cent of the tal­ent in highly skilled engi­neer­ing and tech­nol­ogy roles. GE has built an ad­vanced in­dus­trial ecosys­tem that in­cludes a grow­ing lo­cal sup­ply chain, with sig­nif­i­cant part­ner­ships and in­vest­ments in sup­port of the King­dom in its eco­nomic di­ver­si­fi­ca­tion goals, in­clud­ing build­ing lo­calised man­u­fac­tur­ing com­pe­ten­cies. Mean­while the Amer­i­can en­ergy firm GE Power has bought a Sh40 bil­lion stake in the Cen­tum-fronted 1,050MW Lamu coal-fired elec­tric­ity gen­er­a­tion plant. GE Power’s Chief Com­mer­cial Man­ager Michael Ker­oulle ’said the deal will see the Amer­i­can con­glom­er­ate al­lo­cated 20 per cent shares of Amu Power.

The fresh cap­i­tal in­jec­tion will be used for ac­qui­si­tion of plant ma­chin­ery, a boiler and steam tur­bine gen­er­a­tor built us­ing GES lat­est clean coal tech­nol­ogy as well as air qual­ity con­trol sys­tems.

“The tech­nol­ogy greatly re­duces emis­sion of Sul­phur Ox­ides, Ni­tro­gen Ox­ides and par­tic­u­lates (dusts) to lev­els com­pa­ra­ble to gas fired power plants,” he said. Ker­oulle’ spoke af­ter he rep­re­sented GE in sign­ing a deal with the project’s de­vel­oper Gulf En­ergy. The coal plant is to be set up in the next 42 months.

It is ex­pected to cre­ate 2,000 di­rect jobs and em­ploy an­other 14,000 in­di­rectly within Lamu. Amu Power Chief Ex­ec­u­tive Fran­cis Njogu said GE’S en­try through al­lo­ca­tion of new shares will en­able Amu Power to re­tain its mix of share­hold­ers notably Cen­tum In­vest­ment Com­pany , Gulf En­ergy, China Hua­dian, Sichuan Num­ber 3 Power Con­struc­tion Com­pany and Sichuan Elec­tric Power De­sign and Con­sult­ing Com­pany.

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