- GE (NYSE: GE) recently announced that it is intending to exit the new-build coal power market
GE (NYSE: GE) recently announced that it is intending to exit the new-build coal power market, subject to applicable consultation requirements. And GE’s Steam Power business is going to work with customers on existing obligations as it pursues this exit — which may include divestitures, site closings, job impacts, and appropriate considerations for publicly held subsidiaries.
Going forward, GE will continue to focus on and invest in its core renewable energy and power generation businesses, working on making electricity more affordable, reliable, accessible, and sustainable. And GE Steam Power will continue to deliver turbine islands for the nuclear market and service existing nuclear and coal power plants.
“With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory. As we pursue this exit from the new build coal power market, we will continue to support our customers, helping them to keep their existing plants running in a cost-effective and efficient way with best-in-class technology and service expertise,” said Russell Stokes, GE Senior Vice President and President & CEO of GE Power Portfolio.
Why This Is A Big Deal
GE is known as one of the world’s largest makers of coal-fired power plants. And it was only five years ago that GE doubled down on its coal operations by purchasing the power business from Alstom — which builds coal-based turbines. That deal was valued at $9.5 billion and it was GE’s largest industrial purchase.
Gordon Haskett Research Advisors senior analyst John Inch told CNN that GE’s exit from coal “highlights the billions of dollars of shareholder value destruction that is embodied with the failed Alstom acquisition.” And Inch pointed out that GE has not found any buyers for its steam power business.
Last year, the US consumed more energy from renewable sources rather than from coal for the first time since before 1885. And US coal consumption declined more fox 6 straight years.
