Plans Announced for GE Energy to Acquire ChevronTexaco's Gasification Technology Business
JOINT PRESS RELEASE
Issued by ChevronTexaco Corp. and GE Energy
ATLANTA, Ga. and SAN RAMON, Calif., May 11, 2004 -- GE Energy, a division of General Electric Company and ChevronTexaco Worldwide Gasification Technology Inc., a subsidiary of ChevronTexaco Corporation, today announced plans for GE Energy to acquire ChevronTexaco's gasification technology business.
The acquisition is subject to customary closing conditions, including government approvals. Financial details of the agreement were not disclosed.
With this agreement, GE Energy broadens its gasification plant offerings and further expands capabilities to provide coal power generation that produces fewer air pollutants than conventional coal combustion. GE Energy is a long-time leader in the global integrated gasification combined-cycle (IGCC) industry and has supplied gas turbines for more than 60 percent of the world's operating IGCC plants.
GE has worked with ChevronTexaco on a number of IGCC projects including the application of IGCC at the 100-megawatt Cool Water plant in California, a demonstration project completed in 1984 and the Tampa Electric Company 250-megawatt Polk Power Station in Florida, which began operation in 1996.
The ChevronTexaco gasification technology business has been developing and licensing gasification-related intellectual property for use in the chemicals, electric power and hydrogen producing industries for more than 50 years. Gasification converts coal, petroleum liquids and other hydrocarbon materials into synthesis gas, which is generally used for the production of process chemicals and power.
"The technology inherent in ChevronTexaco's gasification technology business is a key component for creating a cleaner coal power generation option for customers," said John Rice, President and CEO of GE Energy. "By combining ChevronTexaco's established gasification technology and engineering resources with the complementary capabilities of GE Energy, we will create an even broader portfolio of products and services for energy and industrial applications worldwide. We are especially excited about the environmental performance of IGCC plants in producing less air pollutants when compared to conventional coal combustion."
"ChevronTexaco is delighted to reach an agreement with GE Energy on its acquisition of our gasification technology business," said John Gass, president of ChevronTexaco Global Gas. "ChevronTexaco's gasification technology business is an ideal fit with GE Energy's plans to enhance its offerings and grow in this business segment. Our central focus continues to be on commercializing our vast natural gas resources to bring clean, reliable energy to markets around the world, using Liquefied Natural Gas and Gas-to-Liquids technology.
"We believe GE Energy can provide the best home for the gasification technology and the employees who will be needed to run the new business," said Gass.
ChevronTexaco and GE Energy will work closely to ensure minimal disruption to ongoing business. GE Energy will continue to headquarter the gasification business in Texas, where the majority of ChevronTexaco's gasification employees are currently located.
Rice said, "Adding the resources of ChevronTexaco's gasification technology business to GE Energy's line of energy power generation options supports our on-going commitments to provide customers the broadest possible range of energy solutions for the 21st century."
About GE Energy
GE Energy (www.gepower.com) is one of the world's leading suppliers of power generation and energy delivery technology, with 2003 revenues of nearly $18.5 billion. Based in Atlanta, Georgia, GE Energy provides equipment, service and management solutions across the power generation, oil and gas, transmission and distribution, distributed power and energy rental industries.
Currently celebrating its 125th anniversary, ChevronTexaco is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 50,000 ChevronTexaco employees work in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. ChevronTexaco is based in San Ramon, Calif. The gasification technology business of Chevron Texaco is owned and operated by ChevronTexaco Worldwide Gasification Technology Inc., Texaco Development Corporation and certain of their affiliates, all of which are subsidiaries of ChevronTexaco Corp.
Updated: May 2004