Goldman SachsEnergy Efficiency Panel

Steve Fludder

VP, ecomagination

November 5, 2008

2 /11/5/2008

Resource Scarcity1B+ water…grows to 5B+

Raw material inflation

2030

G7 Countries E7 Countries

Gross Domestic Product

Energy Security + CostIncreasing demand…fossil

fuels under pressure

Flat world…wealth disparity

RegulationNear consensus on climate

change… legislation nearly

certain

2006

Challenges & Opportunities…

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4. Reduce water by 20% by ‘12

…launched May ‘08

5. Inform public

…media, annual report

3. Reduce GHG by ‘12

…↓8%, 700k tons…$100MM

2. Double R&D to $1.5B by ‘10

…>$1.4B expected for 2008

1. Grow revenues to $25B by ‘10

…$5B increase over original goal

At GE…Green is Green

Beating all GHG & Energy Targets

• $100 MM as of ’07

• 700 kT CO2 reduced

• 5,000+ projects identified

Keys to Success

• Quality tools & data

• Engaged teams

• Lean workouts

• Rewards & recognition

• GE solutions!

↓ $6.5MM, 59k tons CO2

↓ 1MM gallons jet fuel / yr

Jet Engine Test Bed

Lighting @ 46 plants

5 /11/5/2008

Energy…diverse, cleaner portfolio

Gas T&D

EnvironmentalServices

NuclearWind

Asset Optimization

Biomass Cleaner Coal

Solar

6 /11/5/2008

Transportation Efficiency

Aviation

• GEnx & GE90-115B↑ 15%… GEnx fuel efficiency

↑ 22%… 777 per-seat efficiency

• 2,200 units sold

Transportation

• Evolution Locomotive↓ By up to 40%… key emissions*

↓ By up to 10%… lifecycle costs *

• 5,000 units sold

*compared to FDL

Currently back-ordered

7 /11/5/2008

Water…creating new sources

Sulaibiya plant in Kuwait City

Water produced for irrigation

Frees up fresh water for human consumption

375,000 cubic meters/day

World’s largest membrane based wastewater filtration project

“1 Billion people are impacted by water scarcity today…5+ Billion by 2025”

8 /11/5/2008

Beverage Manufacturing

–GE installed 28 systems that provide ingredient purification and recover 50-70% of reject/brine

–Customers include:

– 28 systems recover more than 750 million gallons per year

Improving Water Use Efficiency

•Cadbury-Schweppes•Niagara Water

•Nestle•Coca-Cola

•Nor-Cal Beverage•Pepsico

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Creating “greener/cleaner” industry

• Help create best in class industry examples

• Integrated Solutions

• Create new de facto industry standards…with customers

–steel–pulp & paper–mining

–food & beverage–data centers–hospitals

–energy/power–water–efficiency–energy management–carbon offsets

Changing Waste to Value- Beverage

Recycled wastewater• conserves fresh water• reduces disposal costs

Biogas generation• reduces electricity and natural gas expenses

Renewable credits• derived from clean power and recycled water

ZeeWeed Membrane Bioreactor

Jenbacher Biogas Engine

+

90% water reuse

13K tCO2/yr reduced

400kW from biogas

expected ROI: 3-4 yrs

UK Brewery

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Changing Waste to Value - Mining

Coal Mine Methane

Jenbacher Gas Engines Carbon Monetization

in Ukraine

• 20 units - 60 MW

• 2MM tCO2/yr equivalent eliminated

• CO2monetization @ $30/ton = $60MM/yr opportunity

• Improved mine safetyCO2 reduction potential over 80%

– CH4: 25x GHG impact vs. CO2

Electricity & fuel cost savings

– Up to 44% electrical efficiency

Credits and Monetization

12 /11/5/2008

Waste to Value – Oil & Gas / Steel

Jenbacher Gas Engines• Utilize waste gases for cogen• Maximize CO2 fuel efficiency

Blast Furnace Gas• Flex fuel gas turbines• Reduce 2MM tons CO2

• 2.4B kWh of electricity/year• 160 tons of steam/year

Flaring and inefficient use of waste gases

The market value of these carbon credits is estimated at 150 million euros.Fulvio Conti, Enel CEO, said the company purchased the credits at about 8 euros per ton … The reduction of CO2 emission will be achieved

through five energy-efficient projects, including combined cycle power plant, in which the waste heat is used to generate additional electricity, thus enhancing the efficiency of electricity generation.

13 /11/5/2008

Looking Ahead …

• Global energy demand is expected to increase 50% by 2025

• We’ll be living in a carbon constrained world

• Renewables will be part of the solution … but only a part

• Nuclear and coal must be included

• Distributed solutions increase

• Green is green

14 /11/5/2008