General Electric Co (NYSE: GE) and Japanese heavy industry manufacturer IHI Corp (OTC: IHICF) (OTC: IHICY) agreed to jointly develop ammonia combustion technologies for heavy-duty gas turbines to generate electricity with reduced or near zero CO₂ emissions.
In June 2021, GE and IHI agreed to conduct an economic assessment for using ammonia as a carbon-free fuel for existing and new gas turbines.
The companies will further define a technology roadmap to develop gas turbine technologies by 2030 that will enable GE's 6F.03, 7F, and 9F gas turbines to fire up to 100% ammonia safely and commercially competitively, with potential implementation across additional gas turbines in the future.
Scott Strazik, CEO of GE Vernova, said, "We hope that this collaboration will pave the way for power plant operators to pursue the adoption of carbon-free fuels such as ammonia for power generation in their GE gas turbines and significantly contribute towards lowering carbon emissions in the power sector globally."
Hiroshi Ide, President of IHI Corporation, said, "Through this collaboration with GE, we will focus our efforts on satisfying domestic and overseas demand for large-scale ammonia gas turbines, stimulating further demand for fuel ammonia and expanding the fuel ammonia value chain to rapidly realize a carbon-neutral society."
The gas turbine market for the power industry will likely grow by $3.4 billion during 2022 - 2027 at a CAGR of 3.05%, Technavio says.
The growth of distributed power generation base, increased CCGT power plants, and a focus on reducing carbon emissions will likely propel the momentum.
Price Action: GE shares traded lower by 0.67% at $79.95 in the premarket on the last check Wednesday.
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