ge challenge - comprehensive deck.pdf

7/27/2019 GE Challenge - Comprehensive Deck.pdf

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GE Challenge IDCase Study


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2 /GE Title or job number /

10/1/2013

Welcome to the GE ChallengeIndonesia 13!"I find my greatest pleasure, and so my reward, in the work that precedes

what the world calls success" - Thomas Alva Edison, GE Founder

From solutions for energy-efficiency to more accessible healthcare, GE works

on things that matter. Building, powering, moving and curing the world. Notjust imagining but doing!

This is your opportunity to take on and solve one of the toughest challenges!


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10/1/2013

ContentsThis book shares you 3 things:

Indonesia Energy ChallengePurpose: To give you the insight how to map out the current situation inEnergy Challenge and replicate the approach to your project.

GE Challenge ProjectPurpose: To structure your team project and approach to develop ideas onhow to solve energy challenge in your campus

GE EcomaginationPurpose: This is how GE takeover the world energy challenge by developingtechnology solution that can meet energy needs, environmental wise and

economic structure.


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GE Title or job number /10/1/2013

Macro Overview: Indonesia EnergyChallengeIndonesia has a wide variety of abundant energy resources, including fossiland non-fossil resources, and has been a net energy exporter for manyyears. The primary energy source fueling Indonesias economy continues tobe oil, although decreasing domestic production, increasing domesticconsumption, and global price hikes over the past few years have reduced oilconsumption and prompted efforts to develop other domestic energy

resources. Some discussions mentioned that coal will be the primarydomestic energy resource in the future, particularly to fuel new powergeneration capacities. The second most important fuel source for Indonesiaspopulation is biomass, although most of its use occurs in the informaleconomy. Meanwhile, biofuels have been identified as the primary energyresource to diversify transport fuels. Even though Indonesia gas resources

are potentially high but the infrastructure still needs more homework to do.


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(2012 data)

2%

3%

3%

4%

5%

9%

MY

TH

PH

ID

SG

VN

Inflation %

37

73

2 1 1

SG MY TH ID PH VN

GDP per capita($ thousands)

0.0

2.0

4.0

6.0

8.0

10.0

2010 2011 2012 2013 2014

GDP growthIndonesia

Malaysia

Thailand

Singapore

Philippines

Vietnam

Myanmar

46

20

9 8 81

SG ID MY VN TH PH

FDI inflow($B)

Oil

HSD11%

MFO4%

Gas22%

LNG3%

Coal51%

Hydro

5%

Geo4%

157trillion

Cubic feet of gasreserves

20th globally

4billion

Barrels of oilreserves

Largest in APAC

27gigawatts

Geothermalreserves

Largest globally

25billion

Tons of coalreserves

Largest exporter

300ethnics

Spread over 33provinces

>742 dialects,>100 traditional

instruments

242million

Total population

4th world mostpopulous

118million

Labor forces

>50% underproductive age

>17thousand

Islands acrossthe region

Largestarchipelago

>4500 incomeper capita

25percent

Debt to GDPratio

>6.5percent

GDP Growth

25th Worldeconomicstability

5.3percent

Inflation rate

$>0.5 trillionindustriesattraction

846billion

Currentnominal GDP

Largest SouthEast Asiaeconomy

Energy Sector Snapshot


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Energy UsageTotal of energy supply in Indonesia reach 1.5 Million BOE in 2012 with top-3 supply

from oil (41.45%), Coal (23.38%), Gas (18.31%). And 42% of energy supply is consumedby industrial sector and 37% by transportation sector. Facing those realities, theenergy sector in Indonesia designed four key policies and objectives include:

Diversification: A key objective of the Government of Indonesia is to reducedependence on oil by expanding the use of coal, gas, and renewable energyresources.

Rational Energy Pricing: The Government of Indonesia recognizes that it can no longersustain uniform pricing for electricity and petroleum products across the country, andit has begun to eliminate subsidies.

Energy Sector Reform: The combination of decentralization of government decision-making to give greater involvement to regional authorities, and the need to attractcapital investment in the energy sector call for energy sector reform that introducesgreater transparency to planning and decision-making. This is now a critical priorityfor the government.

Rural Electrification: The Government of Indonesia wants to bring electricity to 90percent of the population by 2020.


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Energy Supply


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Impact of Energy UsageCoal is abundant resources and cheap for Indonesia. In other sense, the expanded

use of coal will significantly increase emissions of SOx, NOx, PM10, and a range of otherpollutants. Current pollutant emissions standards in Indonesia are less stringent thanin other countries in the region. However, newspaper reports claim that responses toearly tenders for coal-fired plants have not met existing Indonesian standards foremissions. The extent of the impact of the plants will depend heavily on what nationalstandards Indonesia sets and enforces for coal-fired power generation. Setting higherstandards will increase the cost of new power generation and could reduce thethermal efficiency of the plants to be built, resulting in increased CO2 emissions. Theincreased cost needs to be offset against the adverse health impacts of not applyingmore stringent standards.

As other option is Oil. Oil in Indonesia is 1.2% of global production Ranks 20thGlobally in terms of reserves, and estimated to have 128 oil basins. Oil especiallydiesel will be one of the fastest solution for generating energy/electricity in Indonesiaespecially in remote area. However, price for oil especially for Diesel is on differentleague and can harm country monetary stability. As conclusion, the impact of energyuse must be balanced in expected energy needs, environmental wise, and financialperspectives.


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Energy Cost

High diesel landed prices in rural areas makesalternatives (biomass) very attractive

Energy Gen. Cost Comparison

CostofGeneration(cents/KWh)

05

1015202530354045

$1.0/Ltr

$1.4-$1.9/Ltr

$2.4-$2.9/Ltr

Diesel Landed Price Variation


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Future OutlookIndonesia population is 241.2 M with 71.8% electrification ratio and 156.3 Twh energy

demand in 2011. Population growth is 1.2 % per annum will reach 258.9 M in 2021.Government target to have more than 90% electrification by 2021 therefore energydemand will increase until 358.3 Twh in 2021. Generating this projection, Indonesiawill need about 57 GW additional plant capacities by 2021. On the execution part,Indonesia cant rely on PLN only but also will need to empower more IPP and privatesector.


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Energy Projection


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Renewable Energy as AlternativeIn the current case, diesel will be the solution of off-grid area/remote area which incontrast to energy efficiency. Therefor e, renewable energy projects have received

considerable attention from policy-makers in Indonesia. The electricity regulationsfor small and medium-scale power generation from renewable energy resources willdefinitely increase the use of renewable energy. However, despite efforts to clarifyprocedures and terms of sale, negotiation of power purchase agreements to achieveacceptable rates of return on investment in renewable energy projects remainschallenging, even in locations where the renewable option is significantly cheaper

than the conventional diesel generators.The benefit of having renewable energy is to meet energy demand with affordableprice and can become environmental friendly solution. Additionally, renewable energyhas lower operation cost than other fuels since the energy resource is coming fromfeedstock (e.g woodchip) which can be locally provided especially for remote areaenergy alternative.


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Reserve of Renewable Energy even inRegional Perspective


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GE Challenge ProjectBe the Changemaker in your Campus


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Business ScenarioYou are acting as CEO ofGreen Campus Co. in your campus. Your objective is toreduce energy usage or find energy alternative to respond energy demand in your

campus.

On the first stage you need to identify:

Current energy situation and landscape in campus

Energy regulation in campus

Key related stakeholders in campus Current energy usage and cost/expenses

Future energy projection

Room for development on energy sector: Develop your ideas!! Others, you may refer from previous case study to generate more ideas


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The TeamYou need to form core team composed by 4 persons including yourself:

CEO Chief Executive OfficerMain goal is to drive the key milestone, deal with key stakeholders and make surethe company initiative is sustainable.

CFO Chief Financial OfficerMain goal is to ensure all company initiative will meet budgeted plan and will

increase energy usage efficiency.

CMO Chief Marketing OfficerMain goal is to develop mindshare and strengthen company brand.

COO Chief Operating OfficerMain goal is to reduce wasted operational activities and design solutions to beimplemented.


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Timeframe and ObjectivesYour company needs to start-up the initiative and creating the impact to yourcampus society. You need to clearly identify your problem and address it with

reasonable and applicable solutions.The goals that you need to achieve:

Your company needs to develop imaginative and creative energy solutions.

Business scope of your company: Campus area (including: buildings, classrooms,laboratory, library, IT system, elevator, road, parks, cars, motorcycle, water

treatment, sport facilities, etc.) Success parameters: electricity consumption, fuel consumption, carbon emission,

water consumption reduction and environment impact.

Popularity: The more people you engage, and the wider scope of your company;then your company will attract more investors and rank on the top listedcompany.


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Timeframe and ObjectivesOn developing company initiative, you will need to do marketing campaign to attract

more people to join your company effort. Your marketing campaign can include: Social Media: Facebook, twitter, video in youtube

Website or other electronic media

Non electronic media

The more popular your company, and the more endorsement you have; then your

company will attract more investors and rank on the top listed company. Please copyGE Challenge Facebook account and GE Challenge Twitter account in yourcampaign.


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Timeframe and ObjectivesIn the end of the project, your company is expected to create:

Round 1 (All Registered Team): Summary Report: It contains 5 pages of company initiative that describe the whole

activities and impact. Business Report: It contains comprehensive report with maximum 10 pages of

company initiative in detail.

Round 2 (Only Top 5 shortlisted teams to submit): Detailed report with maximum 30 pages. Business Pitch: It becomes presentation deck that your company used for

attracting investors (Not more than 11 slides)


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Enjoy the Learning Phases!


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GE EcomaginationSupporting Green Growth


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We must ask not only if it is profitable,but is it right?

Barrack Obama, 2009


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1-Oct-13

Increasing Population

Increasing PollutionIncreasing Urbanization

Increasing Water scarcity

Increasing Consumption


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Increasing population:From 7B to 9.6B by 2050*

North America

438m +32%

Latin America

783m +40%Oceania

57m +46%

Asia5.2b +34%

Russia112m -22%

Europe732m -10%

Africa2.3b +114%

*If fertility remains constant at 2010 levelsSource: World Population Prospects: The 2010 Revision,

United Nations Population Division

1-Oct-13


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Increasing Pollution :Carbon Emissions

Uncertainty is5% for one standard deviation (IPCC likely range)

Source: Peters et al. 2012a; Le Qur et al. 2012; CDIAC Data; Global Carbon Project 2012

2.6%growth

2011-2012

0.8degC
http://localhost/var/www/apps/conversion/tmp/scratch_2/Peters%20et%20al.%202012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://cdiac.ornl.gov/trends/emis/meth_reg.htmlhttp://www.globalcarbonproject.org/carbonbudget/http://www.globalcarbonproject.org/carbonbudget/http://cdiac.ornl.gov/trends/emis/meth_reg.htmlhttp://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://localhost/var/www/apps/conversion/tmp/scratch_2/Peters%20et%20al.%202012


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Increasing Pollution :Carbon intensity of Economic Activity

Source: Peters et al. 2012a; Le Qur et al. 2012; CDIAC Data; Global Carbon Project 2012
http://localhost/var/www/apps/conversion/tmp/scratch_2/Peters%20et%20al.%202012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://cdiac.ornl.gov/trends/emis/meth_reg.htmlhttp://www.globalcarbonproject.org/carbonbudget/http://www.globalcarbonproject.org/carbonbudget/http://cdiac.ornl.gov/trends/emis/meth_reg.htmlhttp://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://localhost/var/www/apps/conversion/tmp/scratch_2/Peters%20et%20al.%202012


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Increasing Pollution :Emissions by resources

Source: CDIAC Data; Le Qur et al. 2012; Global Carbon Project 2012 , World Resources

Institute

1200coal power

plant

proposed
http://cdiac.ornl.gov/trends/emis/meth_reg.htmlhttp://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.globalcarbonproject.org/carbonbudget/http://www.globalcarbonproject.org/carbonbudget/http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://www.earth-syst-sci-data-discuss.net/5/1107/2012http://cdiac.ornl.gov/trends/emis/meth_reg.html


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Global Green Movement

1987POPULARIZES SUSTAINABLE DEVELOPMENT (BRUDNTLAND REPORT) 1990KYOTO PROTOCOL

1992RIO EARTH SUMMIT (UN CONFERENCE ONENVIRONMENT AND DEVELOPMENT)

2000MILLENIUM SUMMITUN MDG 2008WORLD FINANCIAL CRISIS2008UNEP GREEN ECONOMYINITIATIVE

2012 +

2012RIO +20UN CONFERENCE ON SUSTAINABLE DEVELOPMENTKey Theme Green Economy in the context ofSustainable Development and Poverty Eradication


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GREEN ECONOMYLOWCARBON

GROWTHRESOURCEEFFICIENCY SOCIALINCLUSIVENESS

SUSTAINABLE DEVELOPMENT

+ +


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Energy challenge

X X

Population Energy Use CO2

Content

2005:

2030: 8.4 B

Growingpopulation

6.4 B

Rising livingstandards

72 MBTU /person

86 MBTU /person

35%decrease

134 lbs CO2/ MMBtu

89 lbs CO2per MMBtu

to increase the use ofcleaner fuels andimprove efficiencies.

The only viable ways to stabilize carbon emissions is CO2 Emissions

Carbonemissions

stabilization

28 GT CO2

28 GT CO2

1-Oct-13
http://images.google.com/imgres?imgurl=http://www.astecindustries.com/images/photos/Coal_Hands.jpg&imgrefurl=http://www.astecindustries.com/www/announcements/0.156&h=582&w=875&sz=96&hl=en&start=3&tbnid=6I-UFFS31jP_HM:&tbnh=97&tbnw=146&prev=/images?q=coal&gbv=2&hl=enhttp://images.google.com/imgres?imgurl=http://site-images.ws/images/cust/62709066023475914149576034881927984028/166s_of_traffic.jpg&imgrefurl=http://absoluteprofit.ws/index.php?_action=page_edit&_page=3&h=700&w=465&sz=125&hl=en&start=7&tbnid=LvuzPskuQbsUUM:&tbnh=140&tbnw=93&prev=/images?q=traffic&gbv=2&ndsp=21&hl=en&sa=N


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At GE,We believe that innovation can solve

the worlds toughest challenges.

That belief motivates our people.

It is why GE works.

It is the basis for ecomagination.


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1-Oct-13

ecomagination is At GE,We believe that innovation can solvethe worlds toughest challenges.That belief motivates our people.

It is why GE works.It is the basis for ecomagination.


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1 October 2013

It is : GEs Goal and Methodology GEs business strategy

To create a new value for customers,investors and society by solving energy,efficiency and water challenges - today

ecomagination(n.) GEs commitment to imagine andbuild innovative solutions that benefitour investors, customers and society at large.


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1 October 2013

MissionIn 2005, GE launched ecomagination to address the need for :

Cleaner and more-efficient source of energy

Reduced emissions and

Abundant sources of clean water

Since then, GE has been using its unique energy,

technology, manufacturing and infrastructurecapabilities to develop solutions

More than$105 Bgenerated

revenue todate

Customer &Investor Value EnvironmentalPerformance =

More than

140products &solutions


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1 October 2013

ecomagination Product Review (ePR)To qualify for the ecomagination, product and

solutions must significantly and measurably improve :

OPERATION Performance Improved Value Proposition Improved Customer Competitiveness Lower Operating Cost

ENVIRONMENTAL Performance Less Reliance on Fossil fuels Lower Emissions Higher Efficiency+

ePR process ensures the offering meet necessary criteria and has clear,compelling and substantiated Life-Cycle Management (LCM).Verified by :

GreenOrder, an LRN advisory group


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1 October 2013

ecomagination is

Aircraft enginesthat will be quieter andmore energy efficient.

Wind turbines that

will be able to power1,000 homes each.

Compact fluorescent lightbulbs that will cut energy

consumption

The most fuel-efficientlocomotive

Flight Management toreduce aircraft fuel

consumption

Combined cyclepower plant thatreduce fuel cost

Enhanced quality andimproved productivity

by energy-efficienthealthcare equipment


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1-Oct-13

ecomagination Strategy

GE customerequipment services

partners

GE

Think Multi-Local Think Full Service Think Beyond The Walls

Bring exceptional value to investors and all stakeholders

To be more external andglobal GE has to identify andunderstand the needsGE partners with localorganization and institutions

GE is creating full servicesolutions through a partners.GE is in the unique position tocreate business ecosystems,e.g. integrators company,financing and end user.

Reaching beyond the walls tofind the best ideas andpartners, and funding themthrough our venture capitalpartner


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1 October 2013

29%Reduction in GHGemmissions and

energy use

13.5%Reduction in

water use since2010

$ 2.3BDouble

investment inR&D

$21BIncrease

revenues in2011

EngagedCommunity &collaborative

ideasJOB CREATION

GE ecomagination commitments :

Building Powering Moving Curing


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1 October 2013

Employee engagement

Lean manufacturing

New technology

Retrofitted Operations 6048

2004 2011(million MMBtu)

GEOperationalEnergy Use

Lowering Emissions

32Facilities decreased

energy use by an805,000 millionBTUsand GHG emissionsby 125,000 MT CO2(2004 adj. baseline)

2.09MMetric-ton CO2reduction (2004

adj.baseline

Cross-functional team focus on optimizing energy use and

fulfilling compliance obligations across GE global operations

7.2

5.1

2004 2011(million metric-tonsof CO2 equivalent)

GEOperationalGHGEmissions


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1-Oct-13

Saving WaterExceeding our own goal for reducing freshwater use and

improve water reuse

13.9B gal2006 9.1B gal2011

Enhance water management for once-through cooling operations

Implementation of Kaizen Blitz water reduction

Water filter technology improvement

20%By 2015 25%

By 2015

2008 2009

ReductionTarget


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1 October 2013

Engage CommunityKeep customer, stakeholders and communities engaged

Open Innovation at Work$200million ecomagination ChallengePowering Your Home & Powering The Grid

5,000idea submissions

75,000innovators

150countries

150,000voters

unprecedented level of engagement

GE learned that accelerating open innovation across public, private andnational borders can drive shared value for the company and its partners


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1 October 2013

Engage Communityecomagination Challenge has produced 22 new commercial partnership Acquisition of FMC-Tech, a smart grid technology Support young companies and entrepreneurs Key partnership include :

$134 millionCommitted to new

partners, to scale upand commercializethe best new ideas

through


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1 October 2013

Increase Revenues & Portfolio

1012 13.3

16.9 1820 21

2005 2006 2007 2008 2009 2010 2011

GE Revenues from ecomagination product ($B)

22In 2010 34In 20117In 2009302006 152007 152008

ecomagination product development


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1-Oct-13


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1-Oct-13

Ecomagination products and solutions at work

MOVING


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MOVING

1-Oct-13

The AC44i locomotive Generates fewer GHG emissions &

lower operating costs 2 AC44i can replace 3 older

locomotives & reduce the volumeof annual CO2 emissions by morethan 2,600 tons, in addition to

saving more than 980,000 litersunder typical operating conditions.

CleanCoreEngine WashMobile systemthat will enableairlines to quicklyand easily cleansurfacecontaminant inengine component

LEAP &Passport EngineReduce fuel burn,noise and emissions

RNP &TRUECOURSERequired NavigationPerformance andTroucourse toprovide efficientflight paths, reducefuel burn, reduce CO2emissions, flight

delay and improvingaircraft performance

RNP

POWERING
http://localhost/var/www/apps/conversion/tmp/scratch_2/flightmanagement/aviation.jarhttp://localhost/var/www/apps/conversion/tmp/scratch_2/flightmanagement/aviation.jar


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POWERING

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GE TransportationsDurathon energy storage

Enables efficient and cost-effective storage,distribution and utilization of energy

Longer life cycle, store more energy per unitweight, improved performance in extremeconditions

Safe and have minimal maintenance costs and

less impact on the environment

Reliable backup power for hospitals,telecommunication and data centers

CURING


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CURING

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GE HealthcaresWAVE Bioreactor

For vaccine and biotherapeutics production

Enables cell culturing without requiringcleaning or steam sterilization

Reduce water and energy consumption andstaff time requirements


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BUILDING

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Customized water recycling and purification

Helps with regulatory compliance

Minimizes environmental impact

Tailored solutions for a wide variety of industries

Advanced membrane technologies


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Thank you

ge challenge - comprehensive deck.pdf

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