GE 2007 ecomagination Report - GE : imagination at work

GE ecomagination Report 2007Investing and Deliveringon ecomagination

contents1 About this report2 GE’s ecomaginationcommitments and results4 A letter from Jeff Immeltand Lorraine Bolsinger6 Increase revenues fromecomagination products24 Double investment in R&D32 Reduce greenhouse gasemissions and improveenergy efficiency36 Reduce water use andimprove water reuse42 Keep the public informed48 GE at a glance

Ecomagination is a business initiative to help meet customers’demand for more energy-efficient products and to drive reliablegrowth for GE — growth that delivers for investors long term.Ecomagination also reflects GE’s commitment to invest in a futurethat creates innovative solutions to environmental challengesand delivers valuable products and services to customers whilegenerating profitable growth for the Company. This document isdesigned to report on GE’s growing partnerships with customers,governments, non-governmental organizations and universitiesto execute on our products and services to help address someof the world’s big challenges.

commitment 1Ecomagination is a hard-edged businessinitiative, and GE aims to increase revenuesfrom ecomagination products to createa profitable future for our investors, ourcustomers and society.6 ge 2007 ecomagination reportGE90-115B engine being prepared for test. The engine is assembledat GE’s Durham, North Carolina and Peebles, Ohio facilities

In 2005, we launched an environmental solutions program thatwould produce cleaner energy and water and improve efficiency.After more than 125 years in business, we knew that true environmentalsustainability would only be possible if the practicecould be sustained economically. Ecomagination was conceivedas a business strategy, and just three years into the programit is delivering the commercial potential we envisioned across allGE businesses.came from providing our customers with products that improvetheir operating performance and reduce environmental impact.The potential of this mutual benefit is significant. Not only haveecomagination products generated double-digit growth for GE, butthey have also become a catalyst for innovation and a new dialoguein business as a whole. As we continue to grow ecomagination,we are excited by the momentum of our products and look forwardto the gains that will be added as new products are commercialized.In 2007, GE achieved approximately 15% growth in ecomaginationrevenues over 2006, from $12 billion to $14 billion. This growthge 2007 ecomagination report 7

RevenuesDue to the success GE has had with ecomagination, we are raisingour annual ecomagination revenue target to $25 billion by 2010.In 2007, revenues grew from $12 billion in 2006 to $14 billion,delivering an approximate 15% increase in revenue. Three yearsinto this commitment, GE has experienced tremendous progressthat will translate to the Company’s bottom line, rewardinginvestors as shown here:GE’s business spans the globe. A number of product areas seenbelow are illustrative of outstanding ecomagination growthin 2007.ECOMAGINATION REVENUEGROWTH ESTIMATES(In $ billions)2004 2005 2006 2007 2008* 2009* 2010*2561012141820*Forecast8 ge 2007 ecomagination report

North AmericaDuke Energy secured approval toproceed with construction of one ofthe largest commercial-scale, integratedgasification combined cycle (IGCC) powerplants that will use GE’s proven IGCC technologyto create cleaner electricity.GE provided more than 2.3 gigawattsof new U.S. wind capacity in 2007,an increase of more than 100% over theprior year, reinforcing GE Energy’s positionas North America’s leading supplier ofwind turbines in 2007.GE Canada and BordeauxDevelopments launched Canada’sfirst ecomagination Homebuilder Programnear Calgary, Alberta, in a 3,500 home development.GE will provide ecomaginationproducts that will reduce the development’soverall environmental footprint.Canadian Pacific (CP) added GEEvolution Series locomotives to itsfleet to improve fuel efficiency and reduceair pollutants compared to its existing fleet.As the Official Freight Services providerfor the Vancouver 2010 Olympic andParalympic Winter Games, CP launchednew Olympic Games-branded GE Evolutionlocomotives that will travel across thecountry to bring equipment to the Gamesand the spirit of the Games to Canadians.GE Energy Financial Servicesentered into a partnership withPlutonic Power Corporation, workingtogether with Canada’s First Nations, tobuild a 196-megawatt, run-of-river hydroelectricpower project in British Columbia.Ontario’s second-largest municipalitybegan operating the world’s largestmembrane ultrafiltration facility. GE’secomagination ZeeWeed membranesenabled the region’s water treatment plantto boost treatment capacity by 96 milliongallons per day in half the space requiredby conventional sand filter technology.South AmericaGE Transportation is introducing theEvolution series locomotives forthe first time in South America — at Vale,the largest Brazilian mining company withoperations around the globe. As strategicpartner, GE Transportation will supportVale’s “Green Railroad” commitment.Starting to run in 2009, these fuel efficientand environmentally compatible locomotiveswill support Vale operations in thenorth of Brazil.EuropeGE Energy’s agreement withInvenergy LLC to deliver more than$1 billion in wind turbines marked a majorcommitment for the delivery of renewableenergy. GE will supply Invenergy with600 megawatts of GE’s 1.5-megawatt windturbines for projects in North America, and200 megawatts of GE’s 2.5xl wind turbinesfor European applications.In support of KLM Royal DutchAirlines’ sustainable operationsstrategy, GE delivered GE90-115B enginesfor KLM’s first Boeing 777-300ER.GE Energy signed a global agreementwith Energias de Portugal (EDP),the world’s fourth largest wind projectdeveloper, to supply wind turbines totalingmore than 500 megawatts of new windcapacity to be developed during 2008 and2009 in Europe and the United States.AfricaDesigned, built, operated andfinanced by GE, the HammaSeawater Desalination Plant is helping toease Algiers’ critical, decades-long watershortage by producing up to 200,000cubic meters (53 million gallons) of freshwater per day.GE Water & Process Technologies isbuilding a reverse osmosis seawaterdesalination plant to recover salt from thewastewater stream for use at a chlorinerefinery in South Africa. GE’s desalinationtechnologies will help create a reliable andlocally available supply of high-grade saltfor the refining of chlorine as well as a newsource of potable water for local citizens.Middle EastThe GEnx is the quietest, mostenergy-efficient and fastest-sellinglarge engine in GE Aviation history, andEmirates Airline is among those GEcustomers that have chosen both theGE90-115B and the GEnx engines topower their fleets. To date, 37 customershave ordered 1,144 GEnx engines.IndiaGE is supplying its ecomaginationsolar energy modules and waterfiltration technology to increase the availabilityof clean drinking water in rural areasof India and other developing countries inSoutheast Asia and Africa.GE Water & Process Technologies andEureka Forbes Limited joined forcesto form Infinite Water Solutions Pvt Ltd.,a joint venture focused on bringing reliableand affordable water solutions to the Indianresidential market.ChinaGE is helping the Olympic movementaddress its goals for sustainablebuilding by providing large-scale infrastructuresolutions to all 37 official BeijingOlympic venues, 168 commercial buildingsand other areas around the city. Morethan 300 projects feature a wide array ofadvanced technologies to help organizersachieve their sustainability goals.Asia PacificGE Energy Jenbacher gas enginespower Japan’s largest wood gasto-energyplant, an innovative, nationalrenewable energy project generatingelectricity for communities.AustraliaGE Transportation’s partner UnitedGroup Rail delivered the first 10 of40 Evolution Series locomotives to Rio TintoIron Ore, bringing advanced locomotivetechnology to an energy-intensive industry.ge 2007 ecomagination report 9

Highlights of ecomaginationproducts and servicesThe process behind ecomaginationTo ensure that product introduction is met with the highestdegree of integrity, GE employs a rigorous qualification process toeffectively certify new ecomagination products. GE’s processbegan with establishing a clear standard for ecomagination productsbased on two criteria. Ecomagination offerings are:Products that significantly and measurably improve customers’:1. Operating performance or value proposition and2. Environmental performanceor services that substantially enable such improvements.GE will deliver solutions that increase customers’ ability to competeand win. GE also created the Ecomagination Product Review (EPR)scorecard that quantifies a product’s environmental impactsand benefits relative to other products. To ensure the accuracy ofthe scorecard, GE receives third-party quantitative environmentalanalysis and verification for GE’s product claims.GE’s portfolio of ecomagination products numbers more than 60 atthe time of publication of this year’s report (see list) and spans theentire range of GE businesses.These criteria work in tandem. At the heart of this standard isGE’s belief that “green is green”— that by investing in anddeveloping environmentally advanced products and services,GE Aviation• GEnx Aircraft Engine• GE90-115B Aircraft Engine• CFM56-3 Advanced Upgrade• LM2500+ Marine Engine• CFM56 Tech InsertionGE Consumer& Industrial• ENERGY STAR ® CompactFluorescent Lighting (Screw in)• High Efficiency HalogenLamps• High Efficiency LinearFluorescent Lamps• High Efficiency Ballasts• LED Light Sources• ENERGY STAR ® qualifiedDishwashers• ENERGY STAR ® qualifiedFront-Load Clothes Washers• ENERGY STAR ® qualifiedTop-Load Clothes Washers• ENERGY STAR ® qualifiedRefrigerators• ENERGY STAR ® qualified Hotand Cold Water Dispensers• High Efficiency Motors• Ecomagination HomebuilderProgram• High-Efficiency Water HeatersGE Energy• Integrated GasificationCombined Cycle (IGCC)Cleaner Coal System• Wind Turbines• Solar Electric Power Systems• H-Turbine CombinedCycle System• Jenbacher Coal MineGas Engine• Jenbacher Biogas Engine• Jenbacher Landfill Gas Engine• LMS100 Gas Turbine System• PulsePleat ® Pleated Filters• DLN 1+ Combustion System• DLN 2.6+ Combustion System• Powerwave+ • OpFlex Turndown• Kn3 Optimization Softwarefor Power Plants• Zonal Combustion Tuningfor Coal-Fired Boilers• Economic Simplified BoilingWater Reactor (ESBWR)GE Energy FinancialServices• Greenhouse Gas Services,LLC, a GE AES VentureGE Fleet Services• Environmental PerformanceServices with TelematicsGE Money• Earth Rewards PlatinumMasterCard• GEOSmart (Energy EfficientHome Remodel Loan)• Australia eco MasterCardGE Oil & Gas• BCL 300 Series CentrifugalCompressor for SourGas Reinjection• Integrated CompressorLine (ICL)• UltraScan Duo• Hot Gas Expanders forPower Recovery Systems• DLN-1 IBH CombustionSystem for GE Frame5-2 Gas TurbinesGE Transportation• Evolution Series Locomotive• Hybrid Locomotive• Kazakhstan Evolution ES44ACi• China Mainline Evolution• Russian-Built LocomotiveModernization Skids• Trip Optimizer• Locotrol• SmartBurnGE Water & ProcessTechnologies• Desalination• Advanced Membranes• Homespring• ZeeWeed• EDR (Electro Dialysis Reversal)• ABMet (Advanced BiologicalMetals Removal)• DusTreat• Waste to Value• Entrapped Air Floatation (EAF)• PRO/Titan Reverse OsmosisSystems• MetClear10 ge 2007 ecomagination report

Product highlightsIntegrated Compressor Line (ICL)An electrically driven compressor for oil and gas applications thatreplaces gas-fired compressors. By using electricity rather thangas, the ICL can reduce CO 2 emissions by 60% to 90% dependingon the local electric grid’s emissions intensity. Because it is sealed,the ICL prevents the leakage of methane, a potent greenhousegas. It also has magnetic bearings that do not use oil; over theproduct’s lifespan, this may eliminate the consumption of morethan 30,000 liters of oil.Waste to ValueBy turning wastewater into usable process water, the Waste toValue solution allows customers to produce their own electricityand thermal energy, while reducing greenhouse gas emissionsthrough the destruction of methane. This product also saves freshwater and significantly reduces the need to dispose of wastewater.DLN-1 IBH upgrade kit combustion systemfor GE Frame 5-2 gas turbinesA modified combustion system for operating GE’s Frame 5-2 gasturbines. This Dry Low NO x (DLN) system uses an inlet bleedheating system to help customers adhere to NO x emissions overa wider operating range. Once modified with this combustionsystem, the Frame 5-2 NO x emission levels remain consistentbetween 50% and 100% load.Driven by electricity rather than gas, Integrated Compressor Linetechnology saves energy and avoids associated CO 2 emissionsOpFlex TurndownGas turbine plants that were once operating at base load maynow need to operate across a wider load range, while still maintainingNO x emission compliance. GE Energy’s OpFlex Turndowntechnology lowers the minimum operating load of GE’s 7FA+egas turbine from 50% to 40%, reducing CO 2 and NO x emissions.GE’s Frame 5-2 gas turbines are typically used for mechanicaldrive applications in the oil and gas industryOpFlex turndown allows turbine operators to reduce CO 2emissions while operating across a wider load rangeDusTreatThe DusTreat process employs wetting and binding agents onmining roads to hold dust particles in place, reducing the waterneeded for dust suppression in mines and lowering the costsof water-truck operation.ge 2007 ecomagination report 11

Delivering onecomagination productsGE’s commitment to investing in ecomagination enables usto introduce new products and evolve existing ones thatmake smarter use of energy and deliver benefits to customers,the environment and GE.GE’s energy and water monitoring dashboard, a productof the ecomagination Homebuilder Programcross-businessEcomagination Homebuilder Programoffers energy-saving solutionsDesigned to lower overall household energy consumption,emissions and indoor water consumption compared to industryacceptedaverage new homes, the ecomagination HomebuilderProgram combines building science with high-performanceproducts to help builders and developers create new homesinspired by ecomagination. The program provides innovativeways for builders and developers to build comfortable homes,while reducing the homes’ impact on the environment.As the cost of utilities continues to rise, more people are lookingto integrate environmental technologies into new homes. Ahome built under the GE ecomagination Homebuilder Programis designed to save 20% annually in energy and indoor waterconsumption with 20% fewer household emissions compared toan industry-accepted average new home. For a 2,500-square-foothome, this program is designed to save homeowners $600 to$1,500 on energy and water bills every year.Since the May 2007 launch of the program, builders and developersacross the United States and in Canada have signed up tobuild homes inspired by ecomagination, including Land TejasCompanies, developer of Canyon Gate Communities in Houston,Texas. The first Canyon Gate Community being developed underthe ecomagination program is called Discovery at Spring Trails,and is slated to launch in the summer of 2008.“Through the ecomagination HomebuilderProgram … GE offers us a one-stop shop for theenvironmental features and innovations — fromappliances to solar panels — that homebuyersin Houston are looking for.”Al Brende, Co-Founder of Land Tejas Companies12 ge 2007 ecomagination report

cross-businessCanada’s first ecomaginationHomebuilder Program launchesIn September 2007, GE Canada and Bordeaux Developmentsentered into an agreement to launch Canada’s first ecomaginationHomebuilder Program in Rocky View, a community just westof Calgary, Alberta. The site, which has been owned by alocal ranching family for more than 60 years, has always beena challenging one to use for anything other than limitedlivestock grazing.In response to strong regional growth pressure, the familydecided to develop the land. When looking at how best todevelop the property, the family gave serious consideration onhow the land should be treated — family values, appreciationof the environment and a spirit of community were key. GE’secomagination Homebuilder Program and BordeauxDevelopments’ approach to environmental sustainability proveda winning combination.The planned 1,750-acre, mixed-use ecomagination HomebuilderHarmony development will incorporate sustainable developmentpractices including innovative environmental initiatives designedfor smart land use. When completed, the development will have3,500 homes as well as a health center, 27-hole championshipgolf course, a school and commercial/industrial land use. Theunique, sustainable community is a first of its kind for Albertaand is foreseen to help redefine sustainable community development.GE will play a significant role in providing ecomaginationproducts that will reduce the overall environmental footprint ofthe development.Top: A blueprint for a home inspired by ecomagination;Bottom: Sketch of ecomagination Homebuilder Developmentin Rocky View, AlbertaaviationKLM finds a better way to flyThe aviation industry is investing in products that are quieter,cleaner and more efficient — reducing emissions and noisewhile providing greater capacity, longer range and loweroperating costs. And long-time GE Aviation customer KLM RoyalDutch Airlines is convinced that investment is good for theearth, its customers and its continued growth. “Sustainableoperations is a conscious, strategic choice for KLM,” says theairline’s President and CEO, Peter Hartman. “We are committedto striking the right balance between economic growth andecological development.”To strike that balance, KLM is pursuing three objectives:Reduction — reducing carbon emissions through fleet renewaland other efficient measures, while assisting research andexpert dialogue; Control — supporting the European EmissionsTrading System and establishment of a “Single European Sky”to better manage CO 2 emissions; and Compensation — joiningthe Dutch World Wide Fund for Nature to invest in developmentof renewable energy projects and offering the opportunity forKLM customers to offset flight emissions.KLM’s goal is to compensate all increases in CO 2 emissions withan objective to reduce its emissions 3% by 2012 and 17% by2020. That commitment was showcased when KLM initiated anexpert dialogue about environmental issues in cooperation withGE, Boeing and Netherlands universities. The event broughttogether leaders from industry and the sciences to discuss topicslike “Development of Green Aircraft” and “Inspiring SustainableBehavior.” The dialogue ended with delivery of the airline’s firstBoeing 777-300ER, powered by GE90-115B engines, a productof ecomagination.ge 2007 ecomagination report 13

energy financial servicesFunding a legacy of greenerelectricity in British ColumbiaGE Energy Financial Services entered into a partnership withPlutonic Power Corporation, working together with Canada’sFirst Nations, to build a 196-megawatt, run-of-river hydroelectricpower project in British Columbia, Canada, marking GE’s firstrenewable energy equity investment in Canada. Unlike traditionalhydroelectric facilities, run-of-river projects do not requiredamming and storage of water. Instead, some of the waterflowis diverted from the river and fed downhill to a generatingstation. The water leaves the generating station and is returnedto the river.GE joins Plutonic Power in building a project that will have alasting positive impact on the community and will help meetthe power needs of the province. The project, which began inJuly 2007, will produce electrical energy to power 75,000 homesand ensure that clean or renewable electricity generationcontinues to account for at least 90% of total generation for theprovince. Additionally, royalties provide the ability to developother initiatives in aquaculture and forestry while employmenton the project provides long-term jobs and skills developmentfor the community. The project is expected to become operationalin 2010.“We feel strongly about bringing positive economicand social benefits back into this valley and tothese communities … while also ensuring that webring British Columbia back to a place of electricityself-sufficiency through a legacy of clean, reliable,made-in British Columbia energy.”Donald McInnes, Founder, President and CEO of Plutonic PowerRun-of-river hydroelectric project will produce energyfor 75,000 homeswaterIndia joint venture to offersafe water solutionsIn India, increased industrialization and a rapidly expandingurban population place unprecedented demands on the nation’sdwindling water supply. As a result, clean, potable water isneeded urgently throughout the country. To address this issue,GE Water & Process Technologies and Eureka Forbes Limitedjoined forces in March 2008 to form Infinite Water Solutions PvtLtd., a joint venture focused on bringing reliable and affordablewater solutions to the Indian residential market.GE reverse osmosis membraneInfinite Water Solutions will manufacture GE’s reverse osmosismembranes at a new manufacturing facility in the city ofDehradun. Infinite Water Solutions will manufacture and sellproducts and technology solutions to Indian residential customersthrough Eureka Forbes’ extensive sales network, the largestdirect sales network in Asia. Infinite Water Solutions’ Dehradunfacility will be the largest manufacturing facility of these high-techmembranes in India, and will be capable of serving other waterpurificationcompanies across the region. Together, the GEWater & Process Technologies and Eureka Forbes collaborationrepresents cleaner water solutions, globally compliant manufacturingand market-sensitive pricing.14 ge 2007 ecomagination report

aviationPower and performance:ecomagination’s commitmentto the customerGE Aviation works to provide engine solutions to airlinecustomers across the globe that strike a balance betweendelivering the best possible profile of fuel efficiency andlower noise and emissions, with technology that is reliableand cost-effective to maintain. The GE90-115B and GEnxengines provide that balance, and Emirates Airline is amongmany GE customers globally that have chosen both GEengines to power its fleets.“Emirates is an international and regionalleader in sustainability and environmentalinnovation. The GE90-115B and GEnx-2Bengines on our 777-300ER and 747-8 aircraftare two powerful examples and are helpingus to further reduce fuel consumption andemissions and operate as efficiently aspossible… We look forward to continuing towork with GE Aviation as part of the furtherdevelopment of our sustainability andenvironmental goals.”Adel Al Redha, Executive Vice President,Engineering and Operations, Emirates AirlineGE engines meet customer expectations in a number of ways.The GE90-115B is not only the world’s most powerful engine,but also one of the cleanest and quietest per pound of thrust.Selected by 33 customers for more than 475 Boeing longerrange777-300ER, 777-200LR aircraft and 777 freighters, theengine has low fuel burn and low overall emissions. Emissionlevels are reduced due in great part to the GE90’s improvedcombustor. Because the engine is so efficient, it uses less fuelto create each pound of thrust compared to previous generationsof aircraft engines. And less fuel burned means lesscarbon dioxide, a greenhouse gas.Taking valuable lessons from the highly successful GE90 program,the GEnx is the quietest, most energy-efficient andfastest-selling large engine in GE Aviation history. To date,37 customers have ordered 1,144 GEnx engines, whichpower the Boeing 787 Dreamliner and 747-8 Intercontinentaland Freighter aircraft. When market ready, the GEnx willachieve dramatic gains in fuel efficiency and performancewith significantly lower emissions than other engines inits class. The GEnx will produce fewer emissions than themaximum allowed by 2008 international standards.Top: GE Jenbacher engine; Bottom left: GE wind turbines inForrest Creek, Texas; Bottom right: Rooftop installation ofGE solar panels in San Francisco, Californiaenergy financial servicesGrowing GE’s renewables portfolioGE Energy Financial Services has significantly accelerated itsrenewable energy investing strategy and plans to allocate$6 billion in capital for various projects by 2010. With broadcapabilities to invest equity and debt within and outside theUnited States — not only in wind but in solar, biomass, hydroand geothermal power — GE Energy Financial Services hasbecome a major player in a $60-billion annual renewableenergy market. Among our investments:• Invested in a range of windenergy projects with avariety of turbine manufacturers,including three U.S.wind farms in the stateof Texas with wind poweroperator Airtricity, Inc.• Financed and purchasedthe 11-megawatt Serpasolar power plant inPortugal, one of the world’slargest solar power plants,generating enough electricityfor 8,000 homes andavoiding more than 30,000tons a year in greenhousegas emissions.• Provided financing for fiveCalifornia solar power projectstotaling approximately8 megawatts.• Invested in one of the largestlandfill gas-to-energyprojects in the UnitedStates through the acquisitionof a 90% interest ina limited partnership thatoperates the Scholl CanyonLandfill gas project inGlendale, California.• Made debt and equityinvestments in landfillgas-to-energy projects inthree other areas of theUnited States — New Jersey,Delaware and RhodeIsland — and in a companythat owns 11 projects inthe United Kingdom.ge 2007 ecomagination report 15

windReinforcing leadership in U.S.wind industryWind power is firmly established as one of the largest sources ofnew power generation in the United States, and is becoming amainstream option for meeting growing electricity demand. Lastyear, the United States added 5,244 megawatts of wind power —more than 25% of the world total. The U.S. installed base of windpower grew 45% in 34 states, accounting for more than 1% ofthe nation’s electricity supply and powering more than 4.5 millionhomes. The United States is on pace to surpass Germany as havingthe largest installed base of wind power by the end of 2009.GE Energy reinforced its position as North America’s leadingsupplier of wind turbines in 2007, providing more than 2.3 gigawattsof new U.S. wind capacity — an increase of more than 100% overthe prior year — and helping lead GE Energy to receive the2007 Frost & Sullivan North American Wind Power Growth StrategyAward. To help GE meet the surging demand for wind turbines,component suppliers have announced plans to build two newU.S. wind turbine blade manufacturing plants. Also during 2007,GE Energy announced the expansion of its Renewables GlobalHeadquarters in Schenectady, New York, to include a new WindProduct Management and Customer Support Center.Capping a year of record growth for GE Energy’s wind businesswas the Company’s agreement with Invenergy LLC to deliver windturbines valued at more than $1 billion. The agreement highlightsone of the largest commitments for wind turbines to be deliveredin a single year in the history of the global wind industry. GE willsupply Invenergy with our 1.5-megawatt wind turbines for projectsin North America and our 2.5xl wind turbines for Europeanapplications. The agreement marks the first time a U.S.-baseddeveloper has selected GE’s 2.5-megawatt technology for projectsin Europe.GE’s 1.5-megawatt wind turbine is among the most popularmachines in the global wind industry, with approximately8,000 units installed around the world. The GE 2.5xl wind turbineis the next evolution of the Company’s wind turbine fleet, andbuilds on the success of the 1.5-megawatt technology. The 2.5xlis the largest GE wind turbine available for onshore applications,and is specifically designed to meet the immediate requirementsof the European Union, where lack of available land constrainsthe size of projects. All of the wind turbines are slated for shipmentduring 2009.16 ge 2007 ecomagination reportGE is the leading supplier of wind turbines in North America

transportationEvolution Series locomotives reduceemissions for Australia’s Rio TintoThe northwestern part of Australia is home to Rio Tinto,one of the world’s largest mining companies. In 2007, GETransportation’s partner United Group Rail delivered the first10 of 40 Evolution Series locomotives to Rio Tinto Iron Ore.The Evolution Series locomotive represents a $400-millioninvestment by GE Transportation in the most advanced locomotivetechnology to date. The locomotive is powered by GE’slatest GEVO-12 cylinder engines, which produce as muchhorsepower as the preceding 16-cylinder engines. Built-intechnology also facilitates easier maintenance and fasterrepairs. In one application, the locomotive delivers up toa 5% increase in fuel efficiency and up to a 40% reductionin key emissions over our previous locomotives. In addition,the locomotives meet the stringent Tier I and II emissionsstandards set by the U.S. Environmental Protection Agency.“The new locomotives add to our increasinglyefficient and sustainable mining operations,and are a vital cog in our expansion of Pilbara[region] operations … We are looking forwardto the improvements in fleet maintenance andperformance that will flow from thisinvestment.”Richard Cohen, General Manager,Railway Division of Rio Tinto Iron OreGE solar panel installationsolarHelping Spain reach solar powersupply goalsIberdrola Ingeniería y Construcción, one of Spain’s largestenergy engineering companies, took advantage of governmentincentives and tapped GE Energy to provide more than11 megawatts in GEPVp-200-watts solar modules. The companywill install the GE modules in ground-mounted arrays forseveral projects around the cities of Cáceres and Toledo.capital solutionsCharting a successful routefor Akzo NobelOne of the world’s largest chemical companies, Akzo Nobeloperates a fleet of 10,000 cars that spans 20 countries. Knownfor its tough global emissions targets, Akzo Nobel madethe decision in 2006 to further reduce the emissions of itsEuropean car fleet, while improving its safety. To do this,Akzo Nobel enlisted the help of GE Capital Solutions todevelop a “Clear & Safe Solutions” program.To properly implement the Clear & Safe Solutions program, thejoint Akzo Nobel-GE team reviewed an acceptable method ofmeasuring CO 2 emissions, as well as a list of approved vehiclesthat combined strong environmental credentials withoutcompromising driver satisfaction. The team then developeda safety rating system to objectively evaluate vehicle safety.GE-made Rio Tinto locomotive outside GE’s 2008 AnnualMeeting of Shareowners in Erie, PennsylvaniaThe Clear & Safe Solutions program was rolled out to 107different business units in nine countries. Throughout thedevelopment process, the primary objective of the Akzo Nobel-GE team was achieving environmental and safety improvements,rather than cost savings. This program provided bothimmediate emissions savings, as well as the potential forfuture emissions savings. Additionally, it improved driver safetyand reduced the number of accidents, earning the programextensive recognition, including Fleet Europe magazine’sGreen Fleet Implementation Award.ge 2007 ecomagination report 17

aviationMore efficient aircraft enginesCFM56 Tech Insertion, the infusion of new design technologyinto current production engines, entered service on the BoeingNext-Generation 737 and Airbus A320 family aircraft in 2007,keeping its promise of more efficient engines that meet worldwideemissions standards with margin to spare. Improvedanalytic design tools enabled CFM International, a 50/50 jointventure between Snecma (SAFRAN Group) and GE, to improve theTech Insertion combustor so that it provides on average 25%lower nitrogen oxide (NO x) emissions than the engine it replaces.As a result, Tech Insertion engines meet the new InternationalCivil Aviation Organization Committee on Aviation EnvironmentalProtection emissions standards that took effect in February2008. In addition, the engine’s improved fuel consumption willhelp lower CO 2, reducing these emissions by as much as 200tons per aircraft per year. Over the engine’s life, CFM56 TechInsertion is expected to provide customers with longer time onwing and lower maintenance costs through enhanced durability.Top: GEnx-1B engine recently received certification from theU.S. Federal Aviation Administration; Bottom: GEnx-1B duringground test at Peebles, OhiocoalGE IGCC technology gainsmomentumGE believes that coal must be part of our energy future. However,as concern about the environment grows globally, companiesare turning to GE’s Integrated Gasification Combined Cycle(IGCC) System that converts fuels such as coal into a cleanerburninggas energy source. This technology, an ecomaginationproduct, offers an emissions profile approaching natural gascombined cycle power.IGCC Polk Power Plant, Tampa, FloridaIGCC adoption made significant progress in 2007— three majorprojects using GE’s IGCC Reference Plant technology advancedthrough regulatory approval. In the U.S. states of Indiana(Duke Energy), West Virginia (AEP) and Illinois (Tenaska), cleanercoal power generation will soon be a reality. In late December2007, Duke Energy secured approval from the Indiana UtilityRegulatory Commission to proceed with construction of one ofthe largest commercial-scale IGCC power plants. Constructionon the plant is scheduled to begin in 2008, and when it comesonline in 2012, the 632-megawatt facility will use GE’s provenIGCC technology and low-cost, local Indiana coal.18 ge 2007 ecomagination report

transportationImproving rail andlocomotive efficiencyGE Trip Optimizer: With ever-rising fuel prices and growingemissions regulations, railroads are looking for ways toimprove locomotive efficiency. GE’s Evolution Series locomotiveis among the most fuel-efficient products in the market.However, inefficient acceleration and braking can reduceengine performance and increase locomotive emissions. GE’sTrip Optimizer addresses this problem by determining theoptimum speed profile over a trip or route to minimize fuelconsumption while maintaining time schedules. The optimizationreduces unnecessary braking and helps control speed.GE’s Trip Optimizer provides closed-loop speed regulation,calculated to the optimum speed profile, to adjust for thedifferences between actual and estimated train performance.The system creates an optimal trip profile and automaticallylearns and adjusts throttle settings for variations in grade,track conditions, locomotive health, and train length andweight. Using a sophisticated system of sensors, on-boardcomputers and GPS, Trip Optimizer can create an optimalspeed profile that can help reduce fuel consumption byapproximately 10%. These environmental metrics areachieved without slowing down the network.GE LOCOTROL: GE’s LOCOTROL system is designed to reducelocomotive fuel consumption by allowing more efficienttrain configuration and control of multiple locomotives bydistributing locomotive power throughout the entire train. GE’sLOCOTROL system is currently installed on more than 9,000locomotives in North America. Based on customer data fromone route, GE’s LOCOTROL system can reduce fuel consumptionby an estimated 6% to 10% and avoid an estimated1.5 to 2.3 million metric tons of CO 2 emissions per year.“Using GE LOCOTROL distributed power on ourlocomotives helps Union Pacific to meet ourcommitment to protect the environment nowand for future generations … LOCOTROLtechnology helps our engineers move morefreight with less horsepower, improving theoverall fuel efficiency of our freightmovements. That means reduced emissions,which is great for the environment.”Jim Young, President and CEO of Union Pacific RailroadGE water purification technologywaterCreation of the largestseawater desalination projectin North AmericaPeriods of drought, and a reliance on outside water suppliersand unpredictable rainwater have driven San Diego County tofind altogether new solutions to its water shortage problems.GE and other partners are working together to create theCarlsbad Seawater Desalination Plant, the largest seawaterdesalination project in North America. GE Water & ProcessTechnologies, Poseidon Resources Corporation, AmericanWater and Acciona Agua joined in May of 2007 to invest inthe final stage of the desalination project to bring a longterm,reliable and affordable supply of drinking water tothe water-scarce region.The Pacific Ocean is one of earth’s ultimate water resources,and GE’s ecomagination ZeeWeed membrane technology —among the most energy-efficient ultrafiltration technologies —was selected for the plant that will help make the Pacificpotable. The plant’s source water will be pretreated by theGE ZeeWeed membranes, then processed through reverseosmosis membranes to produce high-quality drinking water.The Carlsbad facility is slated to become operational as earlyas 2010. Once complete, it will provide 50 million gallonsof sustainable and cleaner drinking water — enough for300,000 people. The desalination project will provide the Cityof Carlsbad and other San Diego County water agenciescomplete control of a local drinking water supply that is notdependent on rainfall or outside suppliers, helping alleviatingchronic demand challenges.ge 2007 ecomagination report 19

olympicsPartnering on the Beijing 2008Olympic GamesGE is the exclusive provider of a wide range of innovative productsand services that are integral to staging successful Games.As a Worldwide Olympic Partner, GE is applying environmentalresources, business expertise and technology to create solutionsto help ensure that the Olympic Games’ environmental legacyis a positive one.As China welcomes the world to one of the most anticipatedOlympic Games in history, GE is playing a key role in thepreparations by providing large-scale infrastructure solutions toall 37 official Olympic venues, 168 commercial buildings andother areas around the city. These more than 300 projects, whichinclude transportation, security, energy, water, healthcare andlighting, feature many environmentally advanced technologiesaimed at helping organizers achieve their sustainability goals.Specifically, GE is providing multiple technologies for China’s firstrainwater recycling system. The new system will be located atBeijing’s National Stadium, the setting of the Opening and ClosingCeremonies of the Beijing 2008 Olympic Games, and will use undergroundpools that process up to 100 tons of rainwater per hour,80 tons of which can be reused for landscaping, firefighting andcleaning — a direct way to lower the stadium’s water consumption.Highlights of other key GE projects for the Beijing Games include:Supplying filtration technology for safe drinking water at theNational Stadium — The National Stadium will use GE’s watertreatment technology during the Games to provide up to 16 tonsof purified water per hour. The quality of the water meets the latestnational standards. GE’s water filtration technologies standout for their environmentally sound features, energy-efficiencyand reliability.Delivering energy-efficient turbines at the Olympic CentralArea — GE is supplying energy-efficient turbines to deliver power,heating and cooling to the Olympic Central Area. These systemssuccessfully convert fuels such as natural gases into a cleanerburningenergy source. The process reduces emissions of nitrogenoxides and particulate matter by more than 60%, reducesmercury emissions by more than 50%, and reduces sulfur dioxidesby more than 90%, while using less water than traditionalpulverized coal plants.Implementing solar-powered lighting at Fengtai Softball Field —GE’s solar-powered LED street lighting fixtures and garden lightingare being used at the Fengtai Softball Field.Providing filtering technology for Qinghe Wastewater Plant —To improve Beijing’s wastewater treatment capabilities, thewastewater plant in Qinghe has adopted GE technology that willfilter more than 80,000 cubic meters of wastewater daily to berecycled and help maintain landscaping during the Games, helpingreduce energy use and overall costs.20 ge 2007 ecomagination reportGE is playing a vital role in the preparations for the2008 Olympic Games by providing solutions to 37official Olympic venues including the National Stadium

olympicsVancouver 2010 Olympic WinterGames “Greening of the Games”The Vancouver Organizing Committee (VANOC) is the first OlympicOrganizing Committee to commit to applying sustainabilityprinciples to the Games, including integrated delivery of social,economic, and environmental outcomes and benefits. GE’s Olympicbusiness team is responding in a number of ways to meet thesechallenges with a special focus on ecomagination. For instance,the Vancouver Convention Centre, which will be used for Olympicbroadcasting, will be installing a GE Water & Process Technologiesmembrane wastewater management system that cleans waterfrom within the building and reuses it for flush fixtures, and toirrigate a new, six-acre rooftop garden. GE Water & ProcessTechnologies also won the contract to provide on-site water andwastewater treatment plants for the Nordic Centre. The compact,discreet design of the plants, which met the need to minimizethe footprint of the system, coupled with their superior treatmentcapabilities was a winning combination for the venue.ge 2007 ecomagination report 21

nbcuGreen is UniversalIn May 2007, NBC Universal (NBCU) announced its “Green isUniversal” initiative, dedicated to effecting positive change forthe environment by raising awareness and educating consumersas it substantially greens its own operations. As part of thiseffort, NBCU has publicly pledged to reduce its greenhouse gasemissions at least 1% by 2012.NBCU launched its first “Green Week” in November, during which37 units across the television, theme park and film studiodivisions participated in green-themed, on-air programming anddigital content. NBC Universal’s award-winning public servicecampaign, “The More You Know,” debuted with messages aboutglobal warming, pollution and recycling. In addition, the NBCUniversal Foundation awarded $100,000 in “green grants” tothree environmentally focused nonprofit organizations. Otherinitiatives included employee volunteer activities with greennonprofits in local communities.In honor of its hazardous waste collection event, Universal StudiosHollywood was awarded a Green Seal Certificate from theEnvironmental Media Association. Additionally, Universal wasawarded the GE eCO 2 Award in recognition of its first solarenergy system, the largest in the industry. NBC Universal hasalso taken significant steps to green its own facilities, beginningwith its corporate headquarters in New York.NBC Universal has scheduled additional Green Weeks in April(centered around Earth Day) and November 2008. These twoweeks will continue to demonstrate NBCU’s commitment toproducing the highest-quality, environmentally conscious film,television and digital content; creating incentives for localcommunities to “go green”; and educating employees aboutsustainability and the environment.NBC “Green Week” logowaterImproving watermanagement in CanadaDeveloped in Canada and exported around the world, GE’sZeeWeed membranes are helping municipalities and industrialsites upgrade and expand their water and wastewater treatmentcapabilities to meet rising water demand and increasingly stringentregulations. In June 2007, the Region of Peel, Ontario’ssecond-largest municipality, began operations of the world’slargest membrane ultrafiltration facility. Built on a space-constrainedsite, GE’s ecomagination ZeeWeed membranesenabled the region’s water treatment plant to boost treatmentcapacity by 96 million gallons per day in half the space thatconventional sand filter technology would require.ZeeWeed is an advanced ultrafiltration membrane technologyfor water and wastewater treatmentBuilding on the success of this project, the Region of Peel willalso use ZeeWeed membranes to replace sand filters at another,30-year-old water treatment plant. The retrofit will increasetreatment capacity by 45% with minimal impact to the waterfrontrecreational property above the underground plant. Thespace savings from both projects and robust treatment processmean that the region will be able to meet its water quality andwater quantity objectives for years to come and achieve anyforeseeable changes to drinking water regulations.22 ge 2007 ecomagination report

alternative energyPowering Japan’s largestwood gas power plantPowered by GE Energy Jenbacher gas engines, Japan’s largestwood gas-to-energy plant began operations in 2007 in theYamagata Prefecture, generating 2 megawatts of electricity forlocal communities. Located about 400 kilometers north of Tokyoon the island of Honshū, in Murayama-shi, Yamagata Prefecture —Japan’s largest cherry-producing region — the project is seen asan important specialty gas-to-energy-technology model as theJapanese government is seeking to expand renewable energyproduction to help meet its emissions reduction goals under theKyoto Protocol. Unlike other gasified wood plants, Yamagata’sMurayama site runs completely on wood gas.Wood gas-to-energy plant in JapanVirgin Atlantic plane leaving London’s Heathrow airportaviationGE powers first-ever biofuel flightVirgin Atlantic, Boeing and GE made history in February 2008,when the airline flew a GE CF6-powered Boeing 747 jumbojet from London Heathrow to Amsterdam on biofuel. It wasthe world’s first airline flight on renewable fuel. During thedemonstration flight, one of the aircraft’s four engines wasoperated with a 20% blend of Imperium Renewables biofuel.No modifications were made to either the aircraft or its CF6engines, but 28 hours of ground-testing alternative fuelson a CFM56 engine at GE’s test facility preceded the flight.During ground tests, the biofuel performed as expected,with no negative impact on performance.This historic event was a perfect match for GE’s technicalexpertise and ecomagination goals. GE has considerableexperience testing fuels derived from biomass in its jetengines. GE Aviation uses alternative fuels in its aeroderivativeengines for marine and industrial applications, includingbiodiesel for cruise ships. In fact, Imperium is a major supplierof biodiesel for GE-powered cruise ships for RoyalCaribbean Cruises.ge moneyEarth Rewards Card debutsIn 2007, GE Money delivered the first-ever, U.S. credit card witha reward program that provides cardholders with an automaticmethod to purchase offsets. The credit card’s rewardprogram contributes up to 1% of cardholders’ net spend tobuy carbon offsets. The Earth Rewards card is an additionalway for consumers to offset their carbon impact other thanresponsible travel and reducing home energy use.In response to consumer feedback, GE Money integratedcustom features such as the ability to divide rewards betweenthe environment and cardholder, where the cardholderreceives a portion back in their monthly statement. To minimizethe environmental impact, the card was launched withno direct mail marketing — and paperless statements comestandard. GE Money also launched MyEarthRewards.comto educate consumers on simple ways they can make positivechanges to their lifestyles. The site has an advanced carboncalculator and examples of how large an impact a cardholdercan have just by using their Earth Rewards card.Leveraging the U.S. experience, the GE Money eco MasterCardwas launched in Australia in January 2008. Like the U.S.product, the eco MasterCard was the first general-purposecredit card in Australia with a rewards program that providescardholders with an automatic method to purchase greenhousegas credits. GE Money plans to introduce more productsaround the world.ge 2007 ecomagination report 23

commitment 2GE pledges to double our investment in R&D —reflecting a commitment to generate cleanertechnologies to change the way we live and work.24 ge 2007 ecomagination reportResearcher at GE’s John F. Welch Technology Centre, Bangalore, India

Today, GE has approximately 36,000 technologists located aroundthe world in our businesses and four global research centers(located in Schenectady/Niskayuna, New York; Shanghai, China;Munich, Germany; and Bangalore, India). They work every dayto deliver leading-edge technology and products that drive GE’sgrowth and create a better world. In 2007, GE invested more than$1 billion on cleaner technology research and development (R&D),drawing closer to our pledge to invest $1.5 billion on ecomaginationR&D by 2010. R&D investment has reached a total of more than$2.5 billion since the program’s inception. GE’s commitmentto provide meaningful solutions through ecomagination remainson track, as shown here:ECOMAGINATION R&D INVESTMENT(In $ billions)*Forecast20050.720060.92007 2010*1.11.5ge 2007 ecomagination report 25

GE’s commitment to R&DGE is investing in a broad portfolio of technologies to meet ourfuture energy demands, while also addressing important environmentalchallenges today. Promoting clean, renewable sources ofpower like wind and solar, reducing emissions in power generatedfrom fossil fuels, accelerating advancements in hybrid technologyto drive cleaner transportation alternatives, and offering moreenergy-efficient product alternatives are all part of the manysolutions GE is driving through ecomagination.Key ecomagination research includes:Renewable-energy initiativesGE is working on a number of fronts to drive the developmentof clean, renewable sources of power:Wind energyResearchers are focused on driving new breakthroughs that makewind energy even more cost competitive. Research includes developmentof advanced blades to maximize wind capture, improvedcontrols and software to enhance reliability, and optimization ofthe placement of turbines on a wind farm and grid managementtechnologies to more effectively integrate wind into the electricpower grid.SolarGE researchers have a strong portfolio of short- and long-termresearch programs to make solar energy more affordable andavailable. GE is managing a three-year, $46.7-million project aspart of the U.S. Department of Energy’s Solar America Initiative(SAI), which is looking across the entire value chain from the cellmaterials to the solar module systems to enable low-cost solarpower. Researchers also are exploring a mix of longer-term initiatives,including nano-based materials that hold great potential forone day producing high-efficiency cells with dramatically lowerproduction costs. The SAI program is focused on making solarpower cost-competitive with other conventional sources by 2015.Fuel flexibilityGE researchers are working to make GE’s power-generation productseven more fuel flexible, so that these products can burna wide variety of biofuels, such as landfill gases, that are moreefficient. In addition, researchers are evaluating the propertiesof bio-based fuels as a potential fuel source in aviation.Geothermal and waste heatGE scientists at our Munich facility are seeking to develop newwaste heat recovery technology that will enable low-temperatureheat source utilization, transforming a traditional waste product intoa value-add for our customers. GE scientists also are exploringways to leverage this technology to capture geothermal heat.Cleaner coalGE researchers are actively developing advanced technologies forGE’s Integrated Gasification Combined Cycle (IGCC) power plants.This research is focused on performance improvement andtotal plant cost reductions while continuing to deliver the superiorenvironmental performance using coal. The research also includesa growing emphasis on technologies to improve the viability ofIGCC’s commercially available carbon-capture technologies. GEresearchers are working closely with leading technology companiesand universities to understand the requirements for geologicstorage of CO 2, in order to optimize the IGCC design for carboncapture and sequestration to secure the long-term viability ofcoal-based power generation.Carbon captureWhile GE continues to develop technologies to greatly enhancethe efficiency of our products, we are building on our powergeneration and materials expertise to explore efficient, effectiveand less-costly approaches to CO 2 capture. The goal is to dramaticallyreduce carbon emissions from electricity generated byfossil-fueled plants.26 ge 2007 ecomagination report

Transportation initiativesToday, GE researchers are developing battery and control systemstechnology to bring the hybrid locomotive to market. GE’s hybridlocomotive is being designed to reduce fuel consumption by asmuch as 15% and emissions by as much as 50% compared to mostfreight locomotives in use today. The hybrid locomotive improvesfuel and emissions performance by capturing energy in the brakingprocess and storing it in batteries to provide a ready supply ofclean power to supplement the diesel engine during acceleration.Beyond the hybrid locomotive, researchers are engaged in otherhybrid research activities that will help enable a plug-in hybridvehicleinfrastructure. GE has two projects with the U.S. Departmentof Energy (DOE) and one with the Federal Transit Administration(FTA) within the U.S. Department of Transportation, totaling nearly$20 million to help accelerate the introduction of plug-in hybridvehicles to market.The first of the two DOE projects is a $5.6-million contract todevelop smaller, lower-cost, higher-performing hybrid drivetrainmotors for hybrid electric vehicles. The second is a $1.2-millionproject to develop advanced high-temperature, high-energydensity capacitors. Both technologies are critical to enabling thecommercialization of plug-in hybrid vehicles.On the second project, GE researchers are engaged in a $13-millionproject with the FTA and other industrial partners to build a prototypelightweight, battery-dominant, zero-emissions, hybrid-fuelcell bus. It is expected that the prototype bus will have a range of200 miles and have an improved fuel cell life and cost. A keyfocus of the project is to reduce fuel cell power requirements andimprove energy-storage technologies, which would help increasethe commercial viability of the technology.In addition to these projects, GE scientists are undertaking jointresearch with the battery company A123Systems. This activitywill support A123’s battery development, including batteries forhybrid electric vehicles.In Aviation, GE researchers are working on next-generation engineconcepts that include open rotor configurations and pulsedetonation combustion to improve fuel efficiency. They also continueresearch in advanced aerodynamics, composite materials,turbine alloys and advanced coatings and combustion systemsto achieve further reductions in emissions and fuel burn.Water use and purification initiativesGE scientists are exploring revolutionary new separation principlesand improved membrane technologies to lower the cost of watertreatment for drinking and industrial water reuse, while alsoapplying technology to improve the process for turning wastewaterstreams into sources of both cleaner water and energy. GE ispairing its GE Energy Jenbacher engines, which operate on wastegases, with wastewater treatment process from GE Water &Process Technologies to extract cleaner power and cleaner waterfrom wastewater. To make this work, we are taking advantageof anaerobic digestion for the production of methane gas fromwastewater. The gas can then be burned through our Jenbacherengine to create electricity. The remaining water is then runthrough a filtration process to produce water for industrial reuse.ge 2007 ecomagination report 27

R&D highlightsGE’s culture of fostering imagination is supported by one of theworld’s largest and most diverse networks of research centers.This distinct capability enables GE technologists to share theirexpertise across disciplines and contribute to developing innovativeecomagination solutions.Rolling out efficient,low-cost lighting solutionsIn 2008, GE researchers achieved a major milestone in GE’srevolutionary organic light emitting diode (OLED) program,demonstrating the world’s first roll-to-roll manufactured OLEDlighting devices. OLEDs are thin sheets of plastic that light upwhen an electrical charge is applied. Imagine wallpaper that lightsup a room. OLEDs have the potential to deliver dramaticallyimproved levels of efficiency and environmental performance,while achieving the same quality of lighting found in traditionalproducts today.Today’s processes for making high-performance organic electronicdevices such as OLEDs are costly. To effectively competein the marketplace, commercial lighting applications must havelow manufacturing costs. GE’s demonstration of a roll-to-rollprocess is nothing short of a remarkable achievement.Researchers have been trying for years to develop such a processfor high-performance devices like OLEDs. The roll-to-roll process,which resembles newspaper printing, has the potential toeliminate existing manufacturing hurdles and pave the way toaffordable OLED lighting products into the marketplace.GE’s research culminates the successful completion of a four-year,$13-million research collaboration between GE, Energy ConversionDevices and the U.S. Commerce Department’s National Instituteof Standards and Technology (NIST). GE researchers providedthe organic electronics technology and were responsible fordeveloping the roll-to-roll processes. Energy Conversion Devicesprovided its unique roll-to-roll equipment-building expertiseto build the machine that manufactures the OLED devices. Themachine is being used for further manufacturing research atGE’s Global Research Center in Niskayuna.GE researcher holding OLED technology28 ge 2007 ecomagination report

Driving efforts to commercializeelectric transportationGE is playing a role in helping to commercialize technology tomake electric transportation practical and affordable. Like otherearly manufacturers of electric-powered vehicles, Norwegianelectric car manufacturer Think was challenged with sourcingenough high-capacity batteries to meet its expected needs.At the same time, A123Systems had been working to developlithium-ion batteries that would deliver the power and rangeneeded by vehicle manufacturers. GE Energy Financial Servicesjoined and made an investment to help A123Systems roll outbatteries for Think’s vehicles, also investing in Think itself. Byinvesting in both companies as well as lending its research andtechnology development expertise, GE united three organizationsto accelerate the commercialization of electrified transportation.In addition, GE Transportation is investing in battery technologyfor a variety of applications. In 2007, GE Transportation purchasedBeta Research and Development, a battery design companyin the United Kingdom. The GE Transportation team is activelyengaged with scientists at the Global Research Center todevelop sodium-metal-chloride batteries for the rail, miningand marine industries.Think electric-powered vehiclesLighting the way toward highefficiencyincandescent lampsGE Consumer & Industrial’s Lighting unit is working onadvancements to the light bulb that potentially will elevate theenergy efficiency of this 125-year-old technology to levelscomparable to compact fluorescent lamps (CFL), deliveringsignificant environmental benefits. Over the next several years,these advancements are expected to lead to the introductionof high-efficiency incandescent bulbs that provide the samehigh light quality, brightness and color as current incandescentbulbs while saving energy and curbing greenhouse gas emissionsthat result from power generation.The new high-efficiency incandescent (HEI) bulb, which incorporatesinnovative new materials being developed in partnershipby GE’s lighting unit and GE’s Global Research Center inNiskayuna, New York, would replace traditional 40- and 60-watthousehold incandescent light bulbs, among the most popularbulb types used by consumers today. The new technology maybe expanded to all other incandescent types as well.The target for these bulbs at initial production is to be nearly twiceas efficient as current incandescent bulbs. Adoption of newtechnology could lead to significant reductions in greenhousegas emissions from power generation if the entire installed baseof traditional incandescent bulbs were replaced with HEI lamps.ge 2007 ecomagination report 29

The quest for low-costphotovoltaics technologyIncreasing the affordability and availability of solar power is a keypart of GE’s ecomagination initiative. GE’s solar research programis unique in that it involves one of the most comprehensivereviews across the entire solar industry value chain to enabletechnology solutions to make solar power more economicallyviable and available around the world. GE researchers also arelooking at the next generation and beyond to find innovativeways to reduce the cost of solar power.Researchers on GE Global Research’s Nano Photovoltaics teamdemonstrated a scalable silicon nanowire-based solar cell, whichhas the potential to achieve high efficiency and be producedat a dramatically lower cost than conventional solar cells. It’s anexciting breakthrough that could break the current cost paradigmof higher-efficiency cells coming with a higher price tag. GEwants to be able to produce better-performing cells, while loweringproduction costs. Beyond this initiative, GE researchers areworking on technologies to convert solar energy into usablepower that can be supplied to a house, building or to the electricgrid. As renewables like solar and wind achieve a higher penetrationinto the grid, new technologies will be needed to smooththeir transition.Top: Microscopic view of nano photovoltaics; Bottom: GE solar panel installation30 ge 2007 ecomagination report

Worldwide wind technologyWind technology development is always in motion at GE. At ourresearch headquarters in Niskayuna, New York, GE has teamsfocused on blade design, the drivetrain and composites. Lighterin weight than the fiberglass used today, composites wouldenable longer blade designs that allow for greater wind capture.In our Munich lab, researchers are focused on optimizingthe operation and management of wind farms, while also drivingprogress on composites brought about by the formation ofa new composites manufacturing laboratory in 2007.At our Shanghai lab, GE experts in power electronics, controls andsystems simulation are developing better controls and softwarethat reduce the cost of the turbine, while finding ways to furthermaximize the power generated. And in Bangalore, we are applyingoptimization software tools and modeling to optimize the placementof wind turbines on a wind farm to maximize wind capture.GE also is leveraging its expertise in aerodynamic design toolsand bearings to optimize and improve the design of the windturbine structure.Top left: GE wind turbines under construction in Hawaii; Top right: GE China Technology Center, Shanghai, China;Right middle: GE 2.5xl wind turbines in The Netherlands; Bottom: GE 1.5-megawatt wind turbinesge 2007 ecomagination report 31

commitment 3GE is taking steps to make a positive environmentalimpact by reducing greenhouse gas (GHG)emissions and improving the energy efficiencyof GE’s operations.32 ge 2007 ecomagination reportTo save energy, GE has installedsolar panels at a number of its facilities

To make ecomagination truly “sustainable” from a businessperspective at its inception, GE set very real, aggressive targets,one of which is to improve the energy efficiency of Companyoperations and reduce the Company’s greenhouse gas emissions.GE’s plan to achieve this is called 1-30-30.The “1” reflects the percentage (versus 2004 levels) by which GEwill reduce its absolute greenhouse gas (GHG) emissions worldwideby 2012. This is a major goal, given that GHG emissions wouldotherwise have grown substantially — by approximately 30% —based upon current business growth projections. GE also committedto reducing the intensity of its GHG emissions 30% by 2008 andimproving energy efficiency 30% by the end of 2012 (also versus2004 levels). Improving energy efficiency translates into significantenergy cost savings for GE — another way ecomagination isrewarding investors.By making a public commitment and then tracking the results, GEis leading by example and demonstrating how one company canmake a difference.ge 2007 ecomagination report 33

Operational GHG EmissionsIn 2007, GE’s GHG emissions were 7.02 million metric tons,a reduction of 8% from our 2004 baseline. Our GHG Intensity andEnergy Intensity improved by 34% and 33%, respectively,compared to 2004. We have also reduced our total energy useby 7% since 2004.Each year, GE adjusts its 2004 inventory to account for divestmentsand acquisitions. With the divestment of its Plastics businessin 2007, our adjusted baseline inventory is now approximately32% lower than its initial 2004 inventory. Although the numberof large GE GHG inventory sites is approximately the same as in2004, about 27% of the sites in its original inventory have beenreplaced by newly acquired sites and we measure our progressagainst this adjusted baseline.Energy Treasure HuntsGE’s mechanisms to manage GHGs and energy include “energytreasure hunts,” a Lean manufacturing-based process originallydeveloped by Toyota. More than 200 treasure hunts have beenconducted globally across GE to date, and that process has drivena reduction in GHG emissions of 250,000 metric tons. This processhas also created a pipeline for future projects.Recognizing Our PeopleTo recognize the hard work of our employees that drives 1-30-30,we started an eCO 2 awards and certification program recognizingthose sites that achieve at least a 5% GHG reduction. To becertified, sites must demonstrate that reductions were achievedindependently of any changes in production levels. During 2007,46 sites were certified and 10 sites received eCO 2 awards basedon extraordinary results and use of GE technology.OutreachWe have shared our approach to 1-30-30 with GE ecomaginationproduct partners, various customers, and suppliers. GE has alsoshared its experience with regulatory agencies. GE was one of thecontributors to the U.S. Environmental Protection Agency’s (EPA)Lean and Energy Toolkit (www.epa.gov/lean) published during 2007.The US EPA Office of Innovation also completed a case study onGE’s GHG avoidance work at GE Aviation’s outdoor aircraft enginetest facility in Peebles, Ohio, where the production team used Leanmanufacturing techniques to change its processes to reduceGHG emissions per engine test conducted.GE Energy Financial Services’ InvestmentsGE is also reporting GHG emissions from investments in powerprojects through GE Energy Financial Services.GE Energy Financial Services invests in power projects in a numberof ways (equity, lease, debt). We are reporting emissions forinvestments in which GE Energy Financial Services has an equityinterest in the operation of the project based upon GE EnergyFinancial Services’ percentage of equity ownership. In 2007,GE Energy Financial Services’ GHG emissions are approximately9.71 million metric tons from 25 investments, compared to10.94 million metric tons from 27 investments in 2006.Last year, GE Energy Financial Services demonstrated leadershipby becoming one of the first financial services companies to reportGHG emissions associated with power project equity investments.In 2007, GE Energy Financial Services continued this leadership,outlining its guidelines on emissions involving these investments:• Establish a long-term goal to balance investments in new coalfiredpower plants with renewable energy, clean technologyinvesting and greenhouse gas emissions cuts. It raised its 2010renewable energy-investing target 50% to $6 billion — closingmore than $2 billion of renewable energy transactions in 2007.By 2010, it expects renewable energy investments will comprise20 – 25% of its overall energy and water portfolio, up from about10% in 2006.• Focus investments in new coal power plants on efficient,supercritical technology, and projects with sequestration potential.• Price CO 2 for coal and other fossil fuel plants into dealapprovals process.• Engage with non-governmental organizations through USCAPon policy recommendations to ensure that new coal-firedgenerating units are designed to take into account the futurecost of carbon.• Voluntarily report emissions.• Explore increasing focus on investments in energyconservation and efficiency.In addition, the renewable energy projects in which GE EnergyFinancial Services has purchased equity interests will avoid6.7 million metric tons of CO 2 per year when fully operational.GE OPERATIONALGHG EMISSIONS(Million metric tonsof CO2 equivalentemissions)GE OPERATIONALGHG INTENSITY(Metric tons per$ million revenue)GE OPERATIONALENERGY INTENSITY(MMBtu per$ million revenue)2004 2007GE OPERATIONALENERGY USE(Million MMBtu)2004 20077.677.022004 200761.8040.65523.84350.942004 200765.0560.6234 ge 2007 ecomagination report

Achieving energy savingsApplying solar energy atCompany locationsIn 2007, the Company embarked on its own solar energy initiative.By the end of the year, GE had installed the following energysavingprojects at several of our Company locations using onlyGE technology: Corporate headquarters in Fairfield, Connecticut;Healthcare headquarters in Waukesha, Wisconsin; NBC Universalin Universal City, California; and Energy in Greenville, South Carolina,and Newark, Delaware. At the time it was installed in partnershipwith the local utility, the Waukesha installation was the largestphotovoltaic installation in the state. The use of photovoltaic cellsnot only provides energy security for each site, but also offersa hedge against the increase of utility prices in the future.Solar panels atop GE corporate headquartersin Fairfield, ConnecticutGE solar panels help lightNew York City treeDuring the December 2007 holiday season, GE Energy supplied363 roof-mounted solar panels on top of 45 Rockefeller Plazain New York City to help generate electricity for thefirst solar-powered Rockefeller Center Christmas Tree. TheChristmas tree was decorated with 30,000 new energy-efficientLED lights on five miles of wire, helping illuminate the fabledManhattan complex with a cleaner source of holiday power.Re-designing GE’s John F. WelchTechnology Centre in Indiaas a greener buildingThe John F. Welch Technology Centre, GE’s multidisciplinaryR&D facility in Bangalore, India, will further reduce energyconsumption as the Company adds a new, ultra-efficient350,000-square-foot building to the campus. The new buildingaddresses the huge growth at the center, where the numberof employees has increased to more than 3,500 today. Itincorporates plans for efficient use of energy and water, betterair quality for occupants and renewable sources of energy —and it uses building materials with high recycled contentand low Volatile Organic Compounds (VOC). When completed,the building will be certified by the U.S. Green Building Councilunder the Leadership in Energy & Environmental Design (LEED)rating system. When compared to a standard building, thisnew facility will offer a 30% to 40% reduction in operatingcosts; 25% savings in energy (equivalent to powering close to550 Indian homes); and 20% reduction in water consumption(equivalent to supplying water for nearly 250 people).Illuminated Christmas tree in Rockefeller Plaza, New Yorkge 2007 ecomagination report 35

commitment 4We are expanding our commitments to theenvironment by setting a clear target to reducewater use and improve water reuse anddemonstrating the resulting savings benefitsto our shareowners. GE is newly committingto reducing its global water use from2006 to 2012 by 20%. Progress on this newgoal will be reported annually in futureecomagination reports.36 ge 2007 ecomagination reportHamma Seawater Desalination Plant in Algiers

GE water useSince 2006, we have collected water consumption data for thosesites across our businesses meeting a criteria of more than15 million gallons annually of water consumed. Water consumptiondata includes waters used for potable, process, and sanitarypurposes as well as non-contact cooling waters (NCCWs) fromfreshwater sources. We adjust the data each year to reflectacquisitions and divestments.In 2007, total water consumption from these sources decreasedby 2% from what was reported for 2006.2006Total: 9.74 billion gallonsNCCW: 2.26 billion gallons2007Total: 9.50 billion gallonsNCCW: 2.29 billion gallonsThe next waveForming the newly added goal of GE’s ambitious ecomaginationcommitments, the water reduction targets will be among themost aggressive in the industry and reinforce the Company’sobjective of helping customers manage their rising waterchallenges. In 2007, GE facilities used about 10 billion gallonsof fresh water — enough to meet the annual needs of almost400,000 people in the United States. But also in 2007, ecomaginationproducts manufactured by GE Water & Process Technologieshelped our customers conserve global water resources and createsustainable new supplies of water. For example, GE’s desalinationmembranes transformed more than two billion gallons of waterdaily into fresh usable water, while GE’s process membranes helpedindustrial customers reuse water and reduce effluent dischargeby more than 21 billion gallons over the year.By taking advantage of GE’s best practices and broad portfolioof water treatment solutions, a number of GE facilities willimplement new strategies to further reduce water consumption.For example, at GE’s Oakville facility in Canada, ecomaginationcertifiedZeeWeed MBR wastewater treatment technology enablesthe plant reuse up to 25,000 gallons (95 m3) of water per day forlandscape irrigation, sanitary purposes and in the fire suppressionsystem. This strategy helps reduce the plant’s fresh water consumptionby as much as 85% and conserve potable water supplies.GE is also exploring ways that our Water business can help ourfacilities achieve further reductions in water use. Our Evendaleaircraft engines facility in Ohio — which accounts for about 15%of total water consumption — is currently assessing projects thatwould use these technologies to achieve water use reductions.Other sites such as our Florence, Italy, compressor manufacturingplant and our Wuxi, China, water and process solutions manufacturingplant will also evaluate the technologies.ge 2007 ecomagination report 37

Global water initiativesNot only is GE taking steps to reduce and improve our water use,we are addressing water issues for communities, customers andcountries around the world through a variety of initiatives:China Technology Center scientistsaddressing water scarcityRapid economic growth is draining China’s limited waterresources at an alarming rate. At the same time, the acceleratedpace of modernization in China has led to more pollutionof its lakes and rivers. These trends have prompted toughergovernment regulations.To help gain clarity on the challenge, in 2005, scientists andengineers at the GE China Technology Center started “In Chinafor China,” an effort to apply local GE expertise to the growingproblem.GE scientists at the GE China Technology Center are leadingresearch efforts focused on source water purification, the efficientuse of water in industrial processes, pollution reduction andwater reuse. New, low-energy-consuming technologies suchas membranes, membrane bioreactors and chemicals are beingdeveloped and implemented in systems to further reduce thecost of water for cities and factories.The key focus areas of these efforts include seawater desalination,improving the number of times that water can circulate througha cooling tower, and wastewater treatment and reuse. As part ofthe “In China for China” Initiative, the team is developing solutionsfor some major Chinese industrial companies to use watermore efficiently and increase the number of cycles for their waterreuse. GE also is helping companies recover wastewater forreuse in a process called “zero liquid discharge.” By workingtogether with industry and government, GE’s innovative scientistsand engineers are helping to find real solutions for China’s waterchallenges and for other water-scarce areas around the globe.GE water purification facility in Beijing, China38 ge 2007 ecomagination report

Using solar power to increaseclean water availability indeveloping countriesToday, an estimated one billion people do not have accessto clean, potable water. By 2020, much of the world isexpected to confront severe water shortages, particularlycountries in Asia, Africa and the Middle East. In response tothis global challenge, GE is supplying its ecomagination solarenergy modules and water filtration technology to increasethe availability of clean drinking water in rural areas of Indiaand other developing countries in Southeast Asia and Africa.Combining two of GE’s innovative ecomagination technologies,this system provides a new solution that is inexpensive, lowmaintenance, and rapidly deployable.The use of solar energy technology to power water filtrationsystems will enable governments, non-governmentalorganizations (NGOs) and philanthropic organizations to installequipment in remote areas that lack direct access to transmissiongrids. GE’s innovative Homespring water filtrationsystems use ultrafiltration membranes to physically removeminuscule particles and reduce contaminants such as parasites,bacteria and viruses. The versatile systems require nochemicals to purify water.Australia’s Sydney HarbourWater crisis in AustraliaAustralia is experiencing one of the worst droughts everrecorded, with most of Australia on stringent water restrictionsand the country’s traditional sources of water at historicallows. Some areas are relying on water tankers to deliverdrinking water because their reservoirs are empty.Governments and industries at all levels are working on watersolutions that range from pipeline infrastructure to recyclingand desalination. Almost all state governments havecommitted to desalination plants in some form, and severalbillion dollars have been committed by governments to solvingthe challenge — funding everything from educational programsto water tank rebates and major infrastructure projects.GE is well positioned to help Australia address this water crisisby developing appropriate and sustainable solutions fromour vast global experience and broad portfolio of availabletechnologies. We are working with industry partners andgovernments to provide advice, solutions and bid submissionsfor several major projects that will help provide bothimmediate relief and long-term water security for the nation.Homespring water technology in Indiage 2007 ecomagination report 39

Global educational waterawareness initiativesIncreasing population, infrastructure needs, urbanization, industrialization,groundwater contamination and climate change arecontributing to the world’s growing water crisis. To address thischallenge, GE Water & Process Technologies is working withcommunities, businesses, industries and governments aroundthe world to help alleviate water shortages, reduce contamination,and educate and broaden awareness about the challenges theglobal water crisis presents. With one of the largest portfoliosof water treatment solutions in the world, GE is helping minimizemany of the impacts these challenges present.In Kochi, India, GE Water & Process Technologies teamed with GEEnergy’s solar business to bring clean water to the Home ofHope, an orphanage with some 80 girls under its care. GE’sSolar-Powered Homespring Systems use hollow-fiber ultrafiltrationmembranes and GE photovoltaic modules to bring approximately7,500 liters (2,000 gallons) of clean water per day to the orphanage.Previously, the water was not safe for the children to drink.and water policy experts to discuss best practices and solutionsdesigned to help China meet its growing water demands. GEWater & Process Technologies launched the World Water Tour,a global seminar series designed to educate industrial waterusers on ways to reduce water consumption while meetingbusiness goals, shrinking environmental footprints and increasingoperational productivity.Working in concert with the Metro Atlanta Chamber of Commercein the United States, GE Water & Process Technologies alsohosted the Georgia Water Solutions Forum, a thought-leadershipgathering of leading water experts from the government,municipal, industrial and technology sectors. Attendees exploredsustainable approaches to Georgia’s unprecedented drought,which has resulted in critically low water levels in many ofthe state’s reservoirs. In 2008, GE Water & Process Technologiesis continuing to educate water users at events in Bahrain,Belgium, Brazil, China and Malaysia.In 2007, GE Water & Process Technologies undertook a numberof educational water awareness initiatives. In Shanghai, thebusiness brought together senior Chinese government officialsTop left: Aerial view of Algiers, Algeria; Top middle: Inspecting ZeeWeed membranes at the Lakeview Water Treatment Plant in Canada;Top right: Building a water purification facility in Algiers; Bottom left: GE’s Homespring system; Bottom right: Lakeview WaterTreatment Plant in Canada40 ge 2007 ecomagination report

A letter to readers from Nobel Prizerecipient Rajendra K PachauriCorporate leadership in a changing worldAfter seeing three years of quietly encouraging results, colleaguesstill ask me: Why would a global company like GE launch andpursue a program like ecomagination? Here is my assessment.First: The Fourth Assessment Report of the Intergovernmental Panelon Climate Change (IPCC) has dispelled doubts on the scientificreality of climate change and the role of human actions in causingit. The Report has also countered the fallacy that mitigatingemissions of greenhouse gases would lead to massive loss of jobsand economic output. Those companies that ignore this realityface the dangers of reputational risk, which would grow over timedue to increasing vigilance from civil society and the media.Second: Any company that develops technologies based on alower carbon footprint and on the more-efficient use of scarceresources will have greater access to and acceptability in themarkets that will develop across the world. Based on expectationsof government policy, expanded international trading in carbonand the manifestation of public preferences, it can be projectedthat higher prices for carbon are ‘round the corner. Low carbontechnologies will be at a premium. Mahatma Gandhi said, “Speed isirrelevant if you are going in the wrong direction”— and leadershipand acclaim will be associated only with companies that makethe first move in the right direction. Those that do not, no matterhow rapidly they grow today, may be doomed to failure.Third: Relevant macro-trends are expanding — for example, deepinto water. The world has several locations and communities thatare already in the throes of growing water stress. We also knowthat, based on scientific evidence, climate change is only exacerbatingthis condition.I write from Budapest just as the IPCC has finalized a majordocument on climate change and water: As early as in 2020,it is projected by the IPCC, that in Africa alone as many as 75to 250 million people will be exposed to increased water stressdue to climate change.GE’s goal for reducing its use of water by 2012 is a laudableexercise in leadership that highlights the importance of businessbeing a part of the solutions that global society needs urgently.It sets an example in corporate strategy and action that can alertothers on the need to follow.Ecomagination is not a case of public charity or corporate socialresponsibility, but largely a matter of enlightened self-interest forGE. But this is what visionary leadership is all about.Rajendra K Pachauri, Chairman, Intergovernmental Panelon Climate Change (IPCC), 2007 Nobel Peace Prize recipientDr. Rajendra K Pachauri, Chairman of the Intergovernmental Panel on Climate Change, displays the Nobel Peace Prize in Oslo,Norway, on December 9, 2007, joined by co-recipient, former U.S. Vice President Albert Gore. “I am only a symbolic recipient,”Pachauri said. “It is the organization which has been awarded.” Photo © Sandy Young/WireImagege 2007 ecomagination report 41

commitment 5We’re keeping the public informed about ourecomagination initiatives — and engagingwith others to exchange information, ideas,comments and constructive criticism.42 ge 2007 ecomagination reportNBC News’s Lester Holt is joined by California GovernorArnold Schwarzenegger and GE Chairman andCEO Jeff Immelt at GE’s “Green is Universal” celebrationPhoto © Vernon T. Williams

To optimize the potential of our ecomagination efforts, GE isengaging the public and our customers in a free exchange ofinformation, ideas, comments and constructive criticism. Whenwe engage diverse stakeholders we’re better able to understandour mutual challenges and identify opportunities for improvement.This past year, ecomagination expanded globally as GE increasedits engagement with customers and governments around theworld, including the launch of new initiatives in Germany and theUnited States. GE believes in seeking opportunities wherever theypresent themselves in the world and doing so in a sociallyresponsible way.As part of GE’s overall corporate effort to improve transparency,the Company issues this annual ecomagination report to trackenvironmental goals as well as a separate citizenship report tohighlight social responsibility endeavors.External measurements are an important indicator of GE’s progress.In the past few years, GE has been selected for several credible,socially responsible investment (SRI) indices, including the DowJones Sustainability Index (DJSI), KLD Global Climate 100 Indexand Innovest Global 100 “Most Sustainable Corporations in theWorld” index. The DJSI has long been a benchmark for sociallyresponsible investors to identify companies that have made outstandingcontributions to citizenship efforts. The KLD and Innovestratings were designed to promote investment in companieswith the strongest sustainability performance and whose activitiesdemonstrate the greatest potential for mitigating the causes ofclimate change.ge 2007 ecomagination report 43

GE and AES launchGreenhouse Gas ServicesIn 2007, GE Energy Financial Services launched a venture withthe AES Corporation to help U.S. companies reduce their netcontribution to global warming. Greenhouse Gas Services, theGE AES venture, invests in and develops projects that reduce oravoid greenhouse gas (GHG) emissions by capturing or destroyingGHG emissions and by reducing fossil-fuel consumption throughenergy efficiency and renewable energy generation. Throughthese and third-party projects, the venture provides independentlyverified GHG credits to companies to help them meettheir corporate emissions reduction targets and to offsetemissions generated in connection with consumer products andservices. Greenhouse Gas Services’ GHG credits are intendedto complement a customer’s own projects, providing a costeffectivetool to help achieve emissions reduction goals or todifferentiate the company within the market.dioxide, at sites that treat agricultural waste and wastewater,and at landfills and coal mines. The venture will also reduceemissions through energy-efficiency projects, power generationfrom renewable sources, forestry and land management, andindustrial gas destruction projects. At times, the venture willalso purchase credits from third-party projects that meet itshigh standards. The company expects to generate an annualproduction volume of at least 10 million metric tons of GHGcredits by the end of 2010.During its first year, the venture developed a rigorous Standardof Practice and project methodologies to provide the frameworkfor the environmental and scientific integrity of its GHG credits.The venture also finalized an agreement to provide GHG creditsfor the GE Money Earth Rewards credit card, which channelsup to 1% of credit card purchases toward the offsets.Greenhouse Gas Services is pursuing a wide range of emissionsreductionprojects, including those that capture and destroymethane, a greenhouse gas 21 times more potent than carbonGE Money Earth Rewards credit cardGE Real Estate and theClinton Climate InitiativeGE Real Estate’s commitment to assess the environmentalperformance of the properties in which it invests includes a newpartnership with the Clinton Climate Initiative (CCI). Initiated inlate 2007, the partnership will allow GE Real Estate to accessthe elements of the CCI program as appropriate to improve theenvironmental performance of its properties. CCI, launchedin August 2006, is working with major cities and members ofthe business community to reduce greenhouse gas emissionsin large urban areas. GE Real Estate’s partnership with CCI wasannounced by former U.S. President Bill Clinton at the GreenbuildInternational Conference & Expo in Chicago in November 2007.Clinton Climate Initiative works with major cities such asLos Angeles, California, to reduce greenhouse gas emissions44 ge 2007 ecomagination report

United States Climate ActionPartnership (USCAP)GE was a founding member of the United States Climate ActionPartnership, which is a diverse group of business and leadingenvironmental organizations committed to promoting effective andeconomically sustainable federal legislation to address climatechange that primarily relies on market mechanisms, includinga cap-and-trade program. Since its launch in January 2007, 20additional members have joined USCAP, including two leadingenvironmental groups — the National Wildlife Federation and theNature Conservancy. These new additions bring the group’s membershipto 33 and make it one of the leading climate advocacygroups in the United States.USCAP has played a significant role in making climate changea priority issue in both Houses of Congress. In 2007, GEexecutives spoke at Congressional hearings on the issue —including John G. Rice, GE Vice Chairman and Mark Little, SeniorVice president and Director of GE’s Global Research Center.Mark Little noted, “Placing a monetary value on carbon andadopting rules governing carbon sequestration would go a longway toward ensuring that the nation meets its greenhouse gasemissions goals, and that IGCC (Integrated Gasification CombinedCycle System) technology can be a viable solution in helping usget there. The fact that nearly 50% of the nation’s electricity isderived from coal makes IGCC technology a critical part of thetechnology solutions needed. …In a world that is searching forcarbon-free alternatives, nuclear represents one of the most matureand attractive solutions for bringing more carbon-free poweronline in a significant way.” IGCC technology and the economicsimplified boiling water reactor are GE ecomagination products.“From GE’s perspective the key is technology, and we believe that adoption ofpolicies establishing a market price for carbon and other greenhouse gasesover the long term will stimulate research, development and deploymentof lower-emitting technologies. In our view it is impossible to divorce policydecisions from technology decisions.”John G. Rice, Vice Chairman, GE and President & Chief Executive Officer, GE InfrastructureUSCAP solutions-based report, titled “A Call for Action”ge 2007 ecomagination report 45

Public awarenessGE’s commitment to keeping the public informed is reinforcedthrough its advertising efforts in a variety of media, includingprint, broadcast and online via the ecomagination Web site. Theecomagination campaigns provide awareness and informationfor business executives and consumers while also educatingthem about GE products and services. GE’s latest ecomaginationadvertising highlighted wind and solar energy, water reuse,cleaner coal technology, lower-fuel-burning jet engines and highefficiencyJenbacher gas engines. The “Jar” advertisement tellsthe story of a boy, a jar and the perfect birthday gift, in an effortto highlight GE’s efforts in harnessing the wind to produceenergy. The new campaign was well received by the public andgarnered numerous industry awards.ecomagination Web siteGE’s ecomagination Web site (www.ecomagination.com) details theprogress of ecomagination, describes the products and services,and highlights the latest news and advertising. It features shortvideos that show how specific ecomagination technologies impactpeople’s lives around the world. It provides information in multiplelanguages and has recorded more than 4 million visitors to date.46 ge 2007 ecomagination reportecomagination “Jar” television advertisement

Ecomagination Advisory CouncilFor the second consecutive year, GE has convened a group ofnine energy and environment thought leaders to serve onour ecomagination advisory board to advise the Company’secomagination team on critical environmental and businessissues. The Council is a venue for thought leaders to hear aboutwhat GE is doing. It is also a place for GE to hear from thoughtleaders on where we should be going. Current members of thecouncil include:• James Cameron, Climate Change Capital• Eileen Claussen, Pew Center on Global Climate Change• Karen de Segundo, Consultant(former CEO, Shell International Renewables)• Vinod Khosla, Khosla Ventures• Jonathan Lash, World Resources Institute• Richard Macrory, University College London• Bill McDonough, William McDonough + Partners• Ernest Moniz, Massachusetts Institute of Technology• Dan Reicher, Google Corp.In addition to regularly scheduled discussions throughout theyear, GE holds an annual summit involving all advisory boardmembers and representatives from many different GE businessunits. At this year’s summit, the advisory board provided valuableinput on commercial, technical and policy-related opportunitiesfor GE in the key emerging fields of biofuels, carbon capture andstorage, and energy efficiency. The advisory board also discussedthe value of GE partnering with other organizations to accelerateclean technology innovation and commercialization. Ongoinginput from the advisory board will continue to shape the growthof the ecomagination program as GE identifies new opportunities,and is one of the ways GE increases its engagement with thepublic and leading environmental experts.2008 Sustained Excellence AwardIn early 2008, the U.S. Department of Energy and the U.S.Environmental Protection Agency awarded GE the ENERGY STAR ®Partner of the Year “Sustained Excellence” award, for the thirdstraight year. The Sustained Excellence award recognizes GE’s significantefforts to create high-performance household applianceand lighting products, which help reduce energy spending andprotect the environment. The year 2008 marks the fifth year GEhas been acknowledged as an ENERGY STAR Partner of the Year.GE has been an active supporter of the ENERGY STAR programand of the promotion of ENERGY STAR products to consumerssince 1996. In 2007 alone, GE invested approximately $47 millionto create 215 new ENERGY STAR-qualified appliance models. From2002 to 2007, GE invested more than $452 million to develop andbring to market high-efficiency appliance products.Extending the GE brand in GermanyIn October 2007, GE held a customer event focused on water called“One World. One Environment” in Hamburg, Germany. A strawinscribed with the question, “What’s the straw for?” was inserted inthe Elbe River before the event to pique the curiosity of Hamburg’scitizens. On the day of the event, area executives and representatives,GE customers, and local and national press cruised byboat to the straw installation where GE revealed that the strawsymbolized the ability of GE’s water technologies to treat waterand wastewater for use in drinking and industrial applications.The morning continued with a presentation on ecomaginationby GE executives and featured two keynote speeches byDr. Rainer Sontowski from the German Ministry for the Environment,Nature Conservation and Nuclear Safety and Hans-Olaf Henkel,former CEO of IBM Germany and former German eco-manager ofthe year. After an afternoon interactive workshop on membranewater technology, GE presented an ecomagination leadershipaward for sustainable water solutions to Erftverband, a Germanwater management company that has helped restore the health ofa sensitive waterway using GE’s membrane bioreactor technology.ge 2007 ecomagination report 47

GE at a glanceGE IndustrialGE Industrial provides a broad range of products and servicesthroughout the world, including appliances, lighting and industrialproducts; factory automation and embedded computer systems;sensor and non-destructive testing; electrical distribution andpower control; and security and life-safety technologies.GE InfrastructureGE Infrastructure is one of the world’s leading providers of essentialtechnologies to developed and emerging countries, includingaviation, energy, oil and gas, transportation, and water-processtechnologies and services. GE Infrastructure also provides financingservices to aviation, energy and transportation companies.GE HealthcareGE Healthcare is a leader in the development of a new paradigmof patient care. GE Healthcare’s expertise — in medical imagingand information technologies; medical diagnostics; patientmonitoring systems; disease research; drug discovery and biopharmaceuticalmanufacturing technologies — is dedicatedto detecting disease earlier and to helping physicians tailortreatment for individual patients.NBC UniversalNBC Universal is one of the world’s leading media and entertainmentcompanies in the development, production and marketingof entertainment, news and information for a global audience.GE financial highlightsTop Ten 2007 Growth Facts About GE:• Third straight year of organic revenue growthof 2 to 3 times GDP growth• Earnings per share (EPS) of $2.20, an increaseof 18%• Global revenue growth of 22%, more than halfof revenues outside the United States• Orders growth of 18%• Equipment backlog of $49 billion, an increaseof 54%; service backlog of $109 billion, anincrease of 17%• Financial services assets growth of 16%• Free cash flow of $19 billion; industrial cashfrom operating activities growth of 15%• Dividend increase of 11%, 32nd straightannual increase• $25.4 billion returned to investors throughthe dividend and stock buyback• One of five “Triple-A”-rated U.S. industrialcompaniesGE Commercial FinanceGE Commercial Finance offers an array of services and productsaimed at enabling businesses worldwide to grow. GE CommercialFinance provides loans, operating leases, financing programs andother services.CONSOLIDATED REVENUES(In $ billions)2003 2004 2005 2006 20071731521371249 910586GE MoneyGE Money is a leading provider of credit and banking servicesto consumers, retailers and auto dealers in countries aroundthe world, offering financial products such as private-label creditcards; personal loans; bank cards; auto loans and leases; mortgages;debt consolidation; home equity loans; credit insurance; depositsand other savings products.Organic revenuegrowth (%)EARNINGS FROM CONTINUING OPERATIONSBEFORE ACCOUNTING CHANGES(In $ billions)-12003 2004 2005 2006 200722.519.417.415.613.3Note: Financial results from continuing operations unlessotherwise noted.48 ge 2007 ecomagination report

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