Siemens increases its share in joint venture with Shanghai Electric
Further cooperation between Siemens and Shanghai Electric is intended
Erlangen, Germany, Siemens Energy is to increase its share in Shanghai Electric Power Generation Equipment Co., Ltd. (SEPG) from 33.7 percent to 40 percent. The share increase in the joint venture with Shanghai Electric Group has already been approved by the authorities. The joint venture provides power generation products and solutions for coal-fired and gas-fired power plants as well as for the conventional part of nuclear power plants. Siemens and Shanghai Electric also intend to set up a new service joint venture for the rapidly growing Chinese steam and gas turbine power plant market. It is intended to conclude discussions in the second half of 2010. Further cooperation in renewable energy business with Shanghai Electric is envisaged.
“The share increase in the joint venture is another important step for Siemens to enforce its market penetration in the huge Chinese energy market and underlines our successful strategic partnership with Shanghai Electric,” said Wolfgang Dehen, CEO of Siemens’ Energy Sector. “Power demand in the fast-growing Chinese economy is expected to rise on average by four percent annually over the next two decades. Together with Shanghai Electric we are committed to promoting sustainable development in China’s power industry.” Siemens has been one of the first companies to put a major focus on energy efficiency and is committed to applying its extensive power technologies to help Chinese customers improve their energy performance while lowering their environmental impact. Siemens Energy maintains 24 operating companies in China, thereof eight are operated together with Shanghai Electric.
By 2030, power generation in China will more than double from 3,400 terrawatt-hours (TWh) in 2008 to 8,200 TWh. Coal-fired plants will keep their pole position – however, according to Siemens’ projections their share will drop from three-quarters to two-thirds. Renewables-based power generation and nuclear power will be the main winners of the change in the energy mix. China plans to have available an installed wind power capacity of up to 150 gigawatts by 2020.
Together with Shanghai Electric, Siemens is market leader in the 1000-megawatt (MW) class of advanced steam power plant technology in China. The two companies have jointly put into operation the world’s most efficient coal-fired power plant in Waigaoqiao near Shanghai. The efficiency of the two latest units, each with a capacity of 1000 MW, is well over 45 percent. Further efficiency enhancements are expected to take place. In Waigaoqiao, Shanghai Electric adopted Siemens’ proven and high-efficiency steam turbine design for ultra-supercritical steam conditions, which was made available under license agreements. The ultra-supercritical steam conditions result in a main steam pressure of 270 bar and a main steam temperature of 600°C. Compared to the average Chinese coal-fired power plants, the coal consumption and CO2 emissions of the award-winning Waigaoqiao Phase III project have been cut by more than 15 percent.
Siemens Energy is engaged in various fields in the Chinese energy market. For example, the company is building a new wind power production facility near Shanghai. This new plant, which is scheduled to take up rotor blade production in the second half of 2010, will be used to meet the fast growing demand for wind turbines in the Chinese market and worldwide. Siemens’ investment in this facility is more than EUR60 million. Furthermore, Siemens has recently put into full operation the first ultra high-voltage direct-current (UHVDC) link at a transmission voltage of 800 kilovolts. This low-loss link transports 5000 MW of clean hydro power, produced by several hydro power plants in the remote Yunnan province, over nearly 1500 kilometers to the rapidly growing Guangdong province.
For more than 100 years, Siemens has been active in China, where it holds leading positions in its Energy, Industry, and Healthcare Sectors. Siemens has proved itself as an integral part of the Chinese economy and a reliable, committed, and trustworthy partner in China. Presently, Siemens maintains about 90 operating companies and 61 regional offices in China. In fiscal 2009, sales to Chinese customers amounted to more than EUR5.2 billion. New orders totaled more than EUR5.5 billion. Siemens currently has more than 43,000 employees in China.
The Siemens Energy Sector is the world’s leading supplier of a complete spectrum of products, services and solutions for the generation, transmission and distribution of power and for the extraction, conversion and transport of oil and gas. In fiscal 2009 (ended September 30), the Energy Sector had revenues of approximately EUR25.8 billion and received new orders totaling approximately EUR30 billion and posted a profit of EUR3.3 billion. On September 30, 2009, the Energy Sector had a work force of more than 85,100. Further information is available at:www.siemens.com/energy
Reference Number: E201006094e
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