Ge Webcast Presentation 12042008 2

GE Water & Process Technologies

The Water:Energy Nexus

Enabling the future with portfolio solutions Municipal Solutions:

Drawing on the ocean’s virtually limitless water resources, GE’s desalination technologies are helping water scarce regions to create new freshwater sources that can quench growing demand.

Facing unprecedented growth and water demand, cities are turning to GE’s advanced membrane and water quality measurement technologies to tackle increasingly stringent water and wastewater regulations and the threat of new, virulent pathogens in our lakes and rivers.

Desalination Solutions

Municipal Solutions

Utility Solutions: GE is optimizing system efficiency & increasing uptime in cooling towers and boilers by reducing energy usage and greenhouse gas emissions. Advanced monitoring systems reduce the risk of pathogen growth, such as Legionella, in cooling systems.

Utility Solutions

Residential Products:

Product Water:

Desalination Solutions:

Consumers use the products they trust – whether it is pharmaceuticals, food, or beverages. As brands expand globally, GE technologies ensure high quality ingredient water for manufacturing regardless of a plant’s location or its water source.

Product Water

Process Chemicals & Separations:

Process Chemicals & Separations

Silently working in pipes, tanks and process fluids, GE’s advanced chemicals protect valuable production assets from corrosion and fouling faced in day-to-day operations, while improving overall manufacturing efficiency and quality.

GE point-of-use and point-of-entry filtration systems are enabling homeowners to produce higher quality water from every tap in the home. This same technology is helping developing countries to leapfrog traditional, costly infrastructure and provide safe water to those who need it most.

Residential Products

Industrial Wastewater: Once considered a by-product, GE’s water reuse technology is transforming industrial wastewater into a sustainable, new water source that can often be used many times over—dramatically reducing the strain on our precious water resources.

Industrial Wastewater

2/ 4-Dec-08 GE Water & Process Technologies

2008: Strong organic growth in turbulent times NAM + W Europe -

Metals Residential

MEA ++++ E. Europe +++ LAM ++ APAC ++

2007

Price

Emerging Markets

Developed Markets

• Flow product growth building • Order strength on long cycle • Price response solid

FX

Disposition

2008

• Global growth • Service demand strong • Portfolio awareness building

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2009: Focus on the Core

• • • • •

FIND

KEEP

GROW

New customers New locations

Business retention

Grow existing customers through differentiation

Target corporations Deal selection…win:loss Rich pipeline Demand creation Emerging geographies

Win:Loss

• • • • •

Leverage experience Consistent value delivery Global:local balance Global best practices Advanced digital services

• • • • •

Targeted NPI launch Industry Playbooks Realize service value Water benchmarking Leverage expertise

Erosion Expansion

Pipeline 4/ 4-Dec-08 GE Water & Process Technologies

GE – focused on helping the world overcome unprecedented challenges

Increasing Water Scarcity

Threat of Waterborne Illness

Growth of Developing Nations

Rising Cost of Energy

New Stringent Regulations

Massive Infrastructure Needs 5/ 4-Dec-08 GE Water & Process Technologies

The Global Water Challenge

“Whiskey is for Drinking; Water is for Fighting.” 6/ 4-Dec-08 GE Water & Process Technologies

– Mark Twain

The Global Energy Challenge

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Water : Energy Nexus both challenges must be addressed together

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Nexus #1: 6-20% of a city’s energy demand is

used to produce, treat & transport water ENERGY

WATER

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Solution #1: Distributed water & power…

right mix, right place, right price WATER

ENERGY

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Opportunity #1: Distributed drinking water, reuse and waste water

• Information management … remote monitoring, diagnostics and control • Standardized, integrated equipment solutions • On-site reuse technologies … re-packaging opportunity to drive widespread use • Wastewater to energy is real

11 / 4-Dec-08 GE Water & Process Technologies

Nexus #2: Higher technology to treat impaired

water requires higher energy demand WATER

ENERGY Membrane Other O&M* ~33%

Capital ~33%

Energy ~33%

Thermal (MED) Other 24%

Capital 31%

Energy 45%

* Membrane replacement, Chemicals, Labor, Maintenance 12 / 4-Dec-08 GE Water & Process Technologies

Solution #2: Technology development driving energy and cost out

WATER

ENERGY

Cost of Water $/m3

1.25 Cost of Desalination

1.00 0.75

Cost Water Reuse 0.50 Cost of ‘Traditional’ Water Supply

0.25

2010

1996

The cost of desalination with GE membranes has fallen by more than 80% in the last two decades 13 / 4-Dec-08 GE Water & Process Technologies

Opportunity #2: Technology development

driving energy and cost out $$

SHORT TERM • High-Flux Membrane Systems • Chem/Membrane/Equip Integration • Advanced Pretreatment • Next-Generation Electrical Processes • Nano technologies • Solar & Low Grade Heat Integration

LONG TERM

• High-Efficiency Membrane Materials • SWRO-PRO/RED Integration • Renewable Energy Integration • Nano-tube Active Transport • Additive Particulate Separation • Sub-Surface Desalination

2008

2012

2016

2020 14 / 4-Dec-08 GE Water & Process Technologies

Nexus #3: Declining reservoir levels reduce hydro generating capacity

ENERGY

WATER

15 / 4-Dec-08 GE Water & Process Technologies

Solution #3: Reduce water consumption,

replenish reservoirs, alternative energy sources WATER

ENERGY

Bioenergy

Solar

Wind

Hydro

Natural Gas

Cauley Creek water reuse facility…restoring lake levels by treating municipal wastewater Geothermal

Hydrogen

16 / 4-Dec-08 GE Water & Process Technologies

Opportunity #3: Reduce water consumption,

replenish reservoirs, alternative energy sources • Direct water reuse … next gen NF/UF • Biological control … move away from chlorine • Water rights management • Data management to find and extract unknown underground water supplies … borrow from Oil & Gas industry • Combined water/renewable energy projects • Agriculture … drip/micro drip irrigation 17 / 4-Dec-08 GE Water & Process Technologies

Nexus #4: Power generation requires large

quantities of water WATER

ENERGY

>50% of global industrial water consumption is used to generate power

18 / 4-Dec-08 GE Water & Process Technologies

Solution #4: Reduce water consumption per MW produced

Source To Use

Process & Utilities

Waste To Value

Align optimum water source with consumption need

1) Baseline water & energy footprint

Optimize water & energy consumption in boiler, cooling and fuel systems

2) Identify efficiency opportunities

Convert waste streams into value & minimize risk

4) Execute & calibrate

3) Prepare optimization plan & engage stakeholders

19 / 4-Dec-08 GE Water & Process Technologies

Opportunity #4: Reduce water consumption

per MW produced

• Global focus on industrial water efficiency • Ecomagination … GE 20x12 water reduction goal • Benchmarking services • Common approach across geographies/industries: – Oil & Gas – Mining – Steel – Petrochemical – Food & Beverage 20 / 4-Dec-08 GE Water & Process Technologies

Nexus #5: Energy exploration & production

generates large quantities of wastewater ENERGY

WATER

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Solution #5: Advanced wastewater solutions

reduce water losses and enable water reuse WATER

ENERGY

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Opportunity #5: Advanced wastewater solutions

reduce water losses and enable water reuse

• Oilsands … high-tech chem & equip solutions needed • SAGD … high temperature, oil content • Gas frac water … water scarce & gas rich regions • Address water issues across value chain

23 / 4-Dec-08 GE Water & Process Technologies

Nexus #6: India’s huge energy demand creates

huge water demand WATER

ENERGY

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Solution #6: India’s water and energy

challenges can be solved simultaneously WATER

ENERGY

25 / 4-Dec-08 GE Water & Process Technologies

Opportunity #6: India’s water and energy

challenges can be solved simultaneously • Integrated power & water solution

• Shift from water hunting to water cultivation* • Solutions apply across developing world • Distributed water and energy solutions

* Source: Lux Research

26 / 4-Dec-08 GE Water & Process Technologies

GE Power & Water Combining the best of GE to solve the world’s biggest challenges