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Methane-powered generator sets power gas project in China

  • June 09, 2006
  • Caterpillar Inc.
  • News

Summary

Use of Caterpillar generator sets expected to help improve mine safety, reduce greenhouse gas emissions and generate electricity from methane gas BEIJING, People's Republic of China (PRC) June 9, 2006 - Caterpillar Inc. (NYSE: CAT) has been selected to provide 60 methane-gas-powered generator sets to produce 120 megawatts of power at the Sihe Coal Mine in Jincheng City, Shanxi Province, China. The Shanxi Jincheng Anthracite Coal Mining Group Co., Ltd. is the project developer for the methane gas power project, which is expected to be the largest of its kind in the world when it is fully operational. "The residents of Shanxi Province will benefit from this power plant, which is a great example of the progress that is possible when companies like Caterpillar and its dealers work closely with industry and government," said Stu Levenick, Caterpillar group president with responsibility for China. "This project will improve environmental and economic conditions and mine safety while increasing trade between the United States and China." Methane gas is found in coal seams and can be hazardous if not properly managed and ventilated from mines. The power plant project is expected to improve methane gas ventilation at the mine site, improving safety while providing an environmentally friendly fuel source to generate electricity. Historically, the methane has been vented into the atmosphere, generating greenhouse gas emissions. By capturing the previously vented methane gas and converting it into electricity, the Caterpillar generator sets will significantly reduce greenhouse gas emissions while also improving the capacity of the local power grid. It's estimated the project will reduce greenhouse gas emissions by 4.5 million tons over a 20-year period. "Caterpillar has a strong commitment to safety and environmental stewardship, and we are honored to be a partner in this important project supporting China 's efforts to pursue sustainable economic development," Levenick added. It is anticipated the planned power generation plant at the Sihe Coal Mine will use 60 Caterpillar G3520 generator sets, integrated Caterpillar paralleling switchgear and controls and four steam turbines driven by recovered exhaust heat to produce 120 megawatts of power. Project partner Shanghai Electric Group Co., Ltd. will provide the steam turbines. The entire methane-fired power plant is expected to be fully operational in 2007. Caterpillar will work closely with dealer WesTrac China Limited on product commissioning and ongoing support for this project. "For more than 20 years, our Lafayette, Indiana, Large Engine Center has produced the 3500 series of engines for use in electric power projects all over the world," said Bill Rohner, Caterpillar vice president with responsibility for the Electric Power Division. "The engines that will be the heart of this coal methane power plant have a proven track record and will provide years of dependable electricity for the people of Shanxi Province," Rohner said. Caterpillar has a long history in China. The company sold its first products there in 1975 and opened an office in Beijing in 1978. Beijing is home to Caterpillar's marketing headquarters for China, and it is also the headquarters for Cat China Financial Leasing. In the 1980s, Caterpillar launched technology transfer agreements with Chinese manufacturers who began building Caterpillar licensed products. Caterpillar's expansion in China accelerated in the early 1990s with the establishment of a more significant local production strategy. Today, Caterpillar operates 13 facilities-both joint-venture and wholly-owned businesses-which, together with its network of independent Caterpillar dealers, offer customers in China the best-in-class products, services and support that have made it a global leader. For more than 80 years, Caterpillar Inc. has been making progress possible and driving positive and sustainable change on every continent. With 2005 sales and revenues of $36.339 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. Learn More

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