Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

New Technology Turns Coal Into Clean, High-Powered Gas

Commodities / Coal Nov 19, 2009 - 05:53 AM GMT

By: Money_Morning

Commodities

Best Financial Markets Analysis ArticleKent Moors, Ph.D. writes: A new fuel technology – unveiled just two weeks ago – is about to revolutionize the energy business.
I saw it firsthand.

General Electric Co. (NYSE: GE) asked me to present “The Future of Natural Gas” at the company’s Gas Turbine Symposium in Greenville, S.C. That’s where GE revealed a new generation of its market-leading turbine technology.


Most of GE’s major North American power-production end users attended the event. And the proceedings were simulcast to GE research centers in Munich, Bangalore, and Shanghai.

They made a fuss about this new technology for a reason: A change is coming to electricity production – a big one. The power-plant managers, technicians and government observers at the symposium knew this.

A confluence of market conditions, technical advances and politics right now is ushering in the next generation of power stations. The low price of natural gas – combined with the unlocking of unconventional gas production in the United States – is one reason. But the ongoing concerns over the role played by carbon emission caps and trade provisions in pending legislation may be a more pressing consideration.

The U.S. Senate is reviewing the Clean Energy Jobs and American Power Act, better known as the “Climate Bill.” It will no doubt impact coal-powered generation. That, of course, makes gas turbines a more significant energy option.

And GE knows turbines.

Indeed, its turbine center in Greenville is the largest in the world. And the “integrated gasification combined-cycle” (IGCC) technology GE is making now is changing everything.

It’s even creating opportunities for other businesses – companies developing, fabricating and servicing/supplying turbines. They’re becoming compelling targets for investors.

First, here’s why GE’s technology is so significant…

The Energy is Clean and Powerful

IGCC technology is a product of GE’s “ecomagination” overture.

It takes low-value fuel – coal, petroleum coke, extra-heavy oil or bitumen (also called orimulsion), biomass or even municipal waste – and turns it into a high-hydrogen-content gas. The gas is then used as fuel in a turbine system to generate power.

The transition removes fuel sources having a high carbon footprint and replaces them with a less environmentally suspect source of power.
This is huge, since most people in the industry see the writing on the wall.

While coal and natural gas each provide about 23% of total current U.S. energy, coal is under greater pressure as carbon emissions face greater scrutiny by lawmakers.

With the U.N. Copenhagen energy summit approaching next month, there may just be enough political pressure from the White House for the passage of the Climate Bill. Yet even if there is a delay in the legislation, carbon concerns will remain. Coal-state senators are busy trying to grandfather existing coal power plants at home under whatever provisions emerge in the law – another clear indication higher carbon accountability is on the horizon.    
That’s great news for the IGCC market, of course, which GE’s been in for two decades now. Business is picking up – big time.

On Oct. 29, the company announced the signing of a technical agreement for a new 250-megawatt IGCC power plant in Kern County, Calif., near Bakersfield. The plant will be built by a joint venture of the BP PLC (NYSE ADR: BP) Alternative Energy division and the hydrogen project unit of international mining major Rio Tinto PLC (NYSE ADR: RTP). It is also the first of five worldwide to result from a 2007 joint venture between GE and BP.
Expect more of these ventures globally as environmentally friendly technologies obtain political support.

The new plant will join IGCC facilities GE already built in California (Coolwater in Barstow) and Florida (Polk in Tampa). The company is also providing the technology for the Duke Energy Corp. (NYSE: DUK) plant in Edwardsport, Ind., which will be the largest IGCC facility in the world upon reaching commercial operation in 2012.

In total, GE has constructed some 70 gasification facilities of various types worldwide – so far. About 40 of these are already separating carbon using available commercial technology. 

This market will be growing quickly.

A Range of New Investment Options

While I was in Greenville, I had a chance to see the new gas turbine technologies in development and review operations at the GE manufacturing and testing plants. I also discussed the technical breakthroughs and challenges with GE’s top turbine executives.

We are just beginning to see some of the potential for this new direction in power production. And it is going to bring with it a range of new investment options.

First, in addition to a more positive environmental impact, there are profitable secondary applications resulting from IGCC and related gas turbine uses. For example, the Kern County plant will capture 90% of its carbon emissions and pipe them to enhance recovery at nearby oil fields. Word is, this plant will be the first in a new generation of IGCC applications to generate additional revenue streams from the carbon capture and sequestration process. The carbon dioxide will increase production (and therefore profitability) at what are now mature crude oil extraction sites.

Second, the new IGCC applications will spawn a number of new spin-off opportunities. The process significantly reduces emissions such as sulfur dioxide, nitrous oxide, mercury and particulate matter, while at the same time decreasing water consumption by as much as 30% in comparison to conventional coal-powered plants. Each of these advances will provide markets for a range of new, smaller, more-focused, technically based service, application and new product providers. What used to be waste is now a value-added product stream.

Third, the increasing market presence will assist companies in addition to GE and the electricity providers. New targeted applications are quickly developing in support of the transition to IGCC and other turbine applications. Providing services and parts (the so-called “aftermarket”) is currently controlled by the big boys – GE and its main turbine-producing competitors: Pratt & Whitney [a division of United Technologies Corp. (NYSE: UTX)], Rolls-Royce Group PLC (OTC ADR: RYCEY) and Siemens AG (NYSE ADR: SI).

However, several smaller companies will profit from the turbine breakthroughs.

At the head of this list are upstarts like Gas Turbine Efficiency PLC (PINK: GTBEF). It’s an Orlando-based company specializing in customer products and services for the entire line of GE gas turbines, including the Frame 7EA and newly unveiled 7FA lines – certain to be the center for an expansion of turbine usage worldwide.

Another is Dynamic Turbine LLC of Norcross, Ga. The company makes turbine blades, already approaching a $4 billon-a-year parts-and-services market to the turbine industry. Currently a privately held company, my sources tell me Dynamic Turbine is likely to expand into an integrated outfit by acquiring a recently closed foundry outside Phoenix. That will require a working capital infusion, which means an initial public offering (IPO) or private placement.  

This is rapidly developing into an exciting “next stage” in energy. Now that the technology is available – and companies are employing it – there’s considerable upside potential. All the way from product development to service and support.

[Editor’s Note: Dr. Kent Moors, now a regular contributor to Money Morning, is the executive managing partner of Risk Management Associates International LLP, a full-service global management consulting and executive training firm. He is an internationally recognized expert in global risk management, oil/natural gas policy and finance, cross-border capital flows, emerging market economic and fiscal development, political, financial and market risk assessment, as well as new techniques in energy risk management.

Dr. Moors has been an advisor to the highest levels of the U.S., Russian, Kazakh, Bahamian, Iraqi and Kurdish governments, to the governors of several U.S. states and the premiers of two Canadian provinces, a consultant to private companies, financial institutions and law firms in 25 countries and has appeared more than 1,400 times as a featured television and radio commentator in North America, Europe and Russia. He has appeared on ABC, BBC, Bloomberg TV, CBS, CNN, NBC,  Russian RTV, and regularly on Fox Business Network. ]

Money Morning/The Money Map Report

©2009 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules