GE to Stop Selling Equipment for New Coal-Fired Power Plants and Instead Focus on Gas Turbines and Renewable Energy Equipment
Sep 28, 2020
General Electric (GE) is planning to stop supplying equipment to new coal-fired power plants and instead focus on selling equipment for gas turbines and renewable energy sources. The plan to exit the market that relies heavily on fossil fuels comes after the company has experienced significant financial hardships specifically in its GE Power sector. The company’s Steam Power operation will continue to service existing coal power plants and providing equipment for nuclear plants during the transition.
In 2018, the company moved steam to its Power Portfolio, which also includes business related to the national grid and nuclear technology. That year, steam accounted for $1.9 billion of the broader power business’s $27.3 billion in revenue. In a statement put out by GE announcing the transition, GE stated that its “Steam Power business will work with customers on existing obligations as it pursues this exit, which may include divestitures, site closings, job impacts and appropriate considerations for publicly held subsidiaries.”
In the same statement, Russell Stokes, GE Senior Vice President and President & CEO of GE Power Portfolio said, “With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory,” which clearly showcases the company’s motivation for exiting a non-lucrative sector of the market. The company hopes the move will be seen as forward-looking and addresses potential investor concerns in an additional statement.