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GE Announces $100 Mln China Gas Innovation Fund

GE Announces $100 Mln China Gas Innovation Fund
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Τετ, 28 Σεπτεμβρίου 2011 - 18:44
General Electric Co. (GE) Wednesday announced a $100 million contest in China to fund innovative gas-energy projects, similar to the company's previous innovation programs in the U.S.
General Electric Co. (GE) Wednesday announced a $100 million contest in China to fund innovative gas-energy projects, similar to the company's previous innovation programs in the U.S.

GE is launching its "Ecomagination Challenge" in China along with seven venture capital partners, together providing $100 million to back innovations in gas power, including natural gas, biogas, shale gas and coal bed methane gas.

Speaking at a press briefing, GE Chairman and Chief Executive Jeffrey Immelt said the company expects revenue from its energy business in China to grow by 25%-30% a year "as time goes on," without giving a more specific timeframe.

The U.S. conglomerate sells various energy-related technologies in China and has installed more than 300 heavy-duty gas turbines in the country to date. China wants natural gas to account for 8% of its total energy by 2015 compared with 4% now.

Its 2010 China sales revenue was around $5 billion. Energy revenue in the country wasn't available.

Immelt said the company's global "ecomagination" revenue, from a range of green technologies, including wind turbines and efficient jet engines, will likely be around $21 billion this year, up from $5 billion in 2005.

Venture capital partners for the fund include Citic Capital Partners, an affiliate of Chinese financial conglomerate Citic Group, and Sequoia Capital China, GE said in a statement.

Winners of the contest could receive cash awards, opportunities to work at GE's research and development facilities in China and possible equity investments in their ventures.

In a similar two-stage contest that GE launched in the U.S. last year, it offered $200 million in funding for ideas in fields such as renewable energy and smart-grid technology in partnership with various venture capital firms.

Earlier this month, GE also launched a $100 million "healthymagination" challenge for ideas to treat and detect breast cancer.

"We very much believe that we are never going to invent everything inside the company, and that we need to have the spirit of open innovation to be as good a technical company as we want to be," Immelt said.

Asked about the state of the global economy amid sovereign debt woes in Europe and other risks, Immelt said, "global businesspeople are seeing better business prospects than the mood seems to be.

In India on Tuesday, Immelt said he didn't expect a second global recession. Developed economies in the U.S. , Europe and Japan will be slow, but "the emerging world is still quite strong," he said.

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