BEIJING, CHINA - March 5, 2007 :- GE Energy and Baotou Shenhua Coal Chemicals Co. Ltd. have signed a licensing agreement for the use of GE's gasification technology at a chemical production plant in China's Inner Mongolia Autonomous Region. This marks GE's 30th gasification technology licensing agreement in China.

Under the agreement, the GE gasification technology will be applied at the Baotou Shenhua Coal Chemicals Co., Ltd. plant in Baotou, Inner Mongolia to generate more than 12 million normal cubic meters (NCM) per day of synthesis gas for producing chemicals. Synthesis gas (syngas) is primarily comprised of hydrogen and carbon monoxide, elements that are used as the building blocks for processes such as chemical production. Local coal will serve as the fuel source. Commercial operation is expected by the end of 2009.

"Gasification technology allows our customers in China to produce chemicals by using local coal, an abundant and relatively inexpensive feedstock, which provides an economic benefit for chemical production projects," said John Lavelle, GE Energy's general manager of gasification.

The scope of GE's contract also calls for preparation of a process design package, technical service including training, and the supply of a feed injector and quench ring. GE also will assist in reviewing the detailed design drawings of critical equipment. With licensing and gasification technology teams based in China, GE will be able to provide in-country support for all phases of the project.

The agreement was signed during a ceremony at the Kerry Centre Hotel in Beijing. Among the dignitaries participating were Dr. Zhang Yuzhuo, vice president of Shenhua Group Co. Ltd.; Mr. Zhao Jinli, chairman of Baotou Shenhua Coal Chemicals Co. Ltd.; Mr. Yue Guo, general manager of Baotou Shenhua Coal Chemicals Co. Ltd.; and Mr. Wen Yuezhong, president of GE Energy in China.

Mr. Zhao Jinli said, "Today, we cooperate with GE Energy to initiate a new phase in the energy market in China, especially coal chemical technology. This agreement is a significant step on the road to the internationalization of Shenhua Group."

Of the 30 GE gasification licensing agreement projects in China, 20 have entered commercial operation while the others are in engineering and construction phases. More than 90% of the gasification equipment for these projects is fabricated locally in China.

About GE Energy

GE Energy (www.ge.com/energy) is one of the world's leading suppliers of power generation and energy delivery technologies, with 2006 revenue of $19 billion. Based in Atlanta, Georgia, GE Energy works in all areas of the energy industry including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Numerous GE Energy products are certified under ecomagination, GE's corporate-wide initiative to aggressively bring to market new technologies that will help customers meet pressing environmental challenges.

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