General Electric (GE) is a diversifed infrastructure, fnance and media company. With products and services ranging from aircraft engines and power generation to fnancial services, healthcare solutions and television programming, GE operates in more than 100 countries and employs more than 300,000 people worldwide. The company is also active in the energy market. Until 2013, GE energy incorporated all business activities in one unit, but to provide further focus, three new GE businesses were created: GE Energy Management, GE Oil &

Gas and GE Power and Water. With these businesses, GE has become one of the world’s leading suppliers of power generation and energy delivery technologies. The businesses 282 Alliance portfolios work together to provide integrated product and service solutions in all areas of the energy industry, including coal, oil, natural gas and nuclear energy; renewable resources such as water, wind, solar and biogas; and other alternative fuels. Collaboration with a variety of partners is an important building block in GE’s long-term growth strategy. Some of GE’s alliance initiatives in recent years are outlined next.

GE energy has built on its growing technology presence in China’s thriving chemical production industry by signing new agreements to licence its gasifcation technology to fve Chinese companies for a variety of applications. The licence agreements grant customers the right to utilize GE’s proprietary gasifcation technology, which converts coal and other carbon-based fuels into synthesis gas (syngas) for use in chemical production and other applications. GE’s gasifcation technology is one of the most widely applied technologies of its kind in China, with more than 50 licensed facilities.

GE Energy signed a service alliance with the Tennessee Valley Authority (TVA), the largest public power provider in the United States, which covers four TVA power plants and is valued at $116 million over the next fve years. The alliance helps the TVA meet its strategic needs by ensuring the long-term reliability, effciency and cost-effective operation of its power generation equipment. Under the agreement, GE provides a core team that offers on-site expertise and experience at the various plant locations to help TVA manage outages and respond quickly to specifc project requirements. In 2015, it was announced that TVA would grant GE a contract to supply high-effciency gas turbines for a new combined-cycle plant. This plant will replace three coal-fred units to further reduce coal emissions.

In 2010, GE signed a cooperation agreement with Norwegian energy companies Statoil and Lyse to carry out technical and environmental feasibility studies jointly regarding the construction of an offshore wind demonstration project in Rogaland County, off the southwest coast of Norway. The agreement includes the installation of up to four 4.0-megawatt offshore, direct-drive wind turbines. In 2015, GE initiated a collaboration with Statoil in what has been called the Powering Collaboration programme. This programme entails fnding solutions to meet the global challenges that energy producers are facing, including CO2 and methane emissions and water usage. Utilizing the capabilities of both companies, the programme aims to develop new approaches to create effcient and low-cost technologies that can be implemented globally. Some 20 projects have already been initiated, covering a wide portfolio of potential solutions. The partnership utilized open innovation and crowd-sourcing to get access to new ideas and support the development of new technologies.

GE and Indian-based Ramky signed emergency water and industrial wastewater treatment agreements designed to address India’s industrial wastewater treatment and recycling needs. Such water reuse initiatives can play a major role in helping improve overall water supplies in areas where water issues are critical, such as India. The agreement involves Ramky using GE’s industry-leading ultra-fltration (UF) and membrane bioreactor (MBR) technology for wastewater treatment and recycling in India’s industrial sector. Ramky and GE will also bring the innovative concept of mobile water treatment plants to the Indian water sector.

GE Energy and wind energy developer Iberwind Group SA have signed a 10-year operational and maintenance (O&M) services agreement to cover two Iberwind wind farms in Portugal. Following a complete service agreement for the units that began in 2005, Iberwind chose to continue using GE as its preferred service provider for the next ten years. Working closely with Iberwind, GE has customized a complete service programme that will offer Iberwind operational and maintenance support and technology and engineering expertise, while GE Energy will deliver parts to support corrective maintenance activities.

Questions 1 Given GE Energy’s objective to build and maintain a competitive advantage in the global energy industry (i.e. demanding exploration and exploitation strategies), what are the important considerations in designing and improving GE Energy’s alliance portfolio?
2 What portfolio management initiatives can GE Energy develop to ensure inter-frm learning and coordination between its alliance partners?
3 What recommendations would you ofer GE Energy with regard to alliance portfolio development and its embeddedness in the internal organization?