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                   GE Energy's Jenbacher gas engines have now operated for more 
                    than one year at one of the world's first cogeneration power 
                    plants to utilize waste gas generated by the production of 
                    steel.  
                  The power plant consists of 12 Jenbacher units with a total 
                    power output of 20.4 megawatts (MW) and is located within 
                    the Aceralia factory in Avil�s, Spain.  
                  Commissioning of GE's first commercial converter gas plant 
                    was completed in September 2004. Through the end of September 
                    2005, the 12 engines had operated at Aceralia's steel plant 
                    for a total of 98,050 operating hours.  
                  Based on its positive prior experience with Jenbacher gas 
                    engines, GENESA (Generaciones Especiales I, S.L.), which is 
                    part of the HC Energ�a Group (previously HidroCant�brico), 
                    proposed the installation of Jenbacher engines to Aceralia, 
                    as a solution for utilizing Aceralia's waste gas. Aceralia 
                    is part of Arcelor S.A. of Luxembourg - the world's largest 
                    steel producer, that was created by the merger of the companies 
                    Aceralia, Arbed and Usinor.  
                  By initially investing in the installation of a Jenbacher 
                    test engine, GENESA made it possible to develop this plant, 
                    which is one of GE Energy's largest gas engine projects in 
                    Europe. GE Energy supplied 12 of its 1.7 megawatt, JMS 620 
                    GS-S/N.LC cogeneration modules to Siderg�s Energ�a - a company 
                    founded by GENESA for the development of the project. The 
                    plant utilizes LD gas - which is the waste gas produced in 
                    the Linz Donawitz (LD)steel manufacturing process - to generate 
                    electricity and steam. The electricity produced by the Jenbacher 
                    gas engines is sold to the public power grid. The steam generated 
                    from the exhaust gas is used in the steel production process 
                    of Aceralia and meets a significant portion of Aceralia's 
                    steam requirement.  
                   Jenbacher gas engines were chosen, in part, due to their 
                    ability to burn the toxic and residual LD gas both safely 
                    and efficiently.Through the highly-efficient utilization of 
                    this low-calorific value gas for power generation, other fossil 
                    energy resources can be preserved. This project keeps the 
                    plant's NOx emissions below 500 mg/Nm3 
                    (reference: at 5% O2). Therefore, in 
                    addition to the benefits of an independent power source, this 
                    new class of power plants can provide significant environmental 
                    benefits. 
                   Apart from the engines, the Jenbacher team supplied the 
                    nitrogen-scavenging system, relief valves, catalytic converter 
                    and a range of service, including - commissioning, operator 
                    training and maintenance for engines. 
                   GE Energy's gas engine business has a long history in Spain 
                    and Portugal, where approximately 500 of Jenbacher's 5,000-plus 
                    engines are in operation. The business is a leader in the 
                    use of special gases, such as residual gases or gases from 
                    batteries used in coke production.  
                  Jenbacher gas engines range in outputs of 0.25 to 3 MW and 
                    are equipped with patented combustion systems, engine controls 
                    and monitoring technology - allowing them to meet all relevant 
                    international emission standards, while offering high levels 
                    of efficiency, durability and reliability. GE's Jenbacher 
                    gas engine operations are based in Jenbach, Austria.  
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