GE Energy Infrastructure (24% of total GE revenue) focuses on the development of energy infrastructures. GE Energy sells energy technologies such as gas turbines, generators, and steam turbines to power companies and industrial plants. GE Oil & Gas supplies equipment such as drilling systems, floating production platforms, compressors, and turbines for the oil and natural gas industry.
Energy Infrastructure segment revenues decreased 4%, or $1.4 billion, in 2009 as higher prices were more than offset by lower volume, the stronger U.S. dollar and lower other income, primarily related to lower earnings from associated companies and marks on foreign currency contracts.
Segment profit increased 13% to $6.8 billion, compared with $6.1 billion in 2008, as higher prices and lower material and other costs were partially offset by lower other income, primarily related to lower earnings from associated companies and marks on foreign currency contracts, and lower volume.
GE's installed base of steam and heavy-duty gas turbines has grown to over 10,000 units, representing over a million Megawatts (MW) of installed capacity in more than 120 countries. With over 13,500 wind and 3,600 hydro turbines, the installed capacity of renewable energy exceeds 160,000 MW.
The energy segment of GE Infrastructure provides renewable energy products including wind turbines, nuclear energy reactors, and solar panels. The segment also provides training in the use of its products, as well as financial management plans to make the transition to renewable energy as affordable as possible.
GE is a provider of advanced technology equipment and services for all segments of the oil and gas industry, from drilling and production, liquefied natural gas (LNG), pipelines and storage to industrial power generation, refining and petrochemicals. GE also provides pipeline integrity solutions, including inspection and data management.
Both federal and state agencies have put pressure on GE to clean up its operations' wastes. The annual cost of this environmental cleanup has risen sharply, doubling from $100 million in 2005 to $200 million in 2006.
GE has also started a project known as Ecomagination, reportedly investing $700 million in 2005 for cleaner technology research. The initiative has created products such as:
Products and services resulting from Ecomagination research earned $6 billion in 2004, $10 billion in 2005, and $12 billion in 2006. In 2006, GE spent a total of $900 million on green-technology R&D.
Industrial revenue rose 13% in 2006, due in part to an increase in the sales of power generation equipment. The financial and environment costs of oil are driving the ever-growing market for alternative energy sources, which benefits GE's energy business. In particular, GE's revenues from the sale of wind-powered turbines have more than quadrupled in the past four years. In addition to producing wind turbines, GE has increasingly bought ownership stakes in wind farms, having invested $4 billion in such facilities as of summer 2008.
As of 2008, GE is the ranked a close second behind Vestas in global wind power market share, with 18.6% of the market. The company currently earns $6 billion in annual revenues from wind power related business. GE has made a number of significant investments in wind power, including $147 million towards the construction of an offshore wind turbine manufacturing plant in the UK and its 2009 purchase of turbine engineering company ScanWind Group. The UK investment is part of a $450 million investment in offshore wind turbine production in Europe, which expects a 70% increase in offshore wind power production .
GE is the single largest manufacturers of natural gas power systems, with a global market share of around 40%. Other large players are Alstom and Siemens AG (SI), with nearly 30% and 20% market shares, respectively. GE's share of the wind energy business stands at around 15% of the global market, after competitors Vestas and Gamesa. Its 2002 purchase of Enron's wind assets has positioned GE for future expansion into this renewable energy market.