General Electric Co. (GE) signed a $300 million contract with Saudi
Electricity Co. (5110.SA) to expand six power plants across
Saudi
Arabia
in order to meet increased
power demand and avoid blackouts.
The expansions, which include 13 gas turbines, are expected to add nearly 800
megawatts of power to the Saudi grid by the summer of 2013. The new contract will
bring the number of GE turbines delivered for Saudi Electricity projects to
nearly 200 in the last five years.
Separately, GE also said Capstone Turbine Corp. (CPST) will continue to build
GE's Clean Cycle generators through January 2016 under an extended
original-equipment-manufacturing agreement.
Financial terms weren't disclosed.
Capstone, a maker of low-emission microturbine systems, has seen significant
interest in the Clean Cycle generator since Organic Rankine Cycle technology
was added to the California Self-Generation Incentive Program, meaning
qualifying
California
utility customers can receive up to a $1,250-a-kilowatt rebate.
GE shares
recently were up 1.6% to $16.34 premarket.