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GE increases funds to bolster energy programmes

26th February 2014

General Electric has announced plans to increase its focus and funding on energy projects reserving an additional USD 10bn for its "ecomagination" budget

The company has returned its focus on energy projects as a result of new opportunities created by the U.S. energy growth

General Electric has announced plans to increase its attention and funding on energy projects such as waterless fracking and gas turbine efficiency by reserving an additional USD 10bn to last through to 2020 for its "ecomagination" budget, Reuters has reported.

The company has returned its focus on energy projects as a result of new opportunities created by the U.S. energy growth.

GE chief executive Jeffrey Immelt said, "The reserves are here. The potential is here," essentially describing how new drilling technologies revealed more oil and gas reserves.

He added that “Energy companies need help reaching fossil fuels but also bringing them to markets and GE can offer that know-how. There's just technical intensity that is going into these industries."

Energy is considered the most prominent growth area for GE, advancing the company’s intention to become a dominant supplier of equipment and services to the oil, natural gas and alternative power industries.

The "ecoimagination" project, which was established in 2005 to provide a general focus on sustainability and other environmental issues.

The programme has cost about USD15bn and was set to expire next year. However, GE executives have decided to extend it to 2020 with an additional USD 10bn in funding. The majority of the funds will go to energy-related projects.

The project is also part of GE's research and development budget, which is estimated to cost about USD 5bn to USD 6bn a year.

In 2013, GE bought Lufkin, a Texas-based company that designs, manufactures and services oil wells, with the intention of selling the company's oilfield pumps in international shale fields and gathering information to enable oil producers to become more efficient.

Mark Little, the chief technology officer and head of global research for GE revealed that "We have a very broad, long-standing commitment to energy."

 

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