Wednesday 23 September 2015

Next Industrial rEVolution: General Electric - From Oil to Lithium.


  As always, it is not only important what is discussed, but who is talking. Four Trillion Transportation Industry is under siege by Elon Musk and Apple will crack Oil fortress wide open with its Electric iCar. Now disruption is coming to the Energy Sector.

Lithium BOOM: Apple Targets $1 Trillion MC And Electric iCar Shipping Date for 2019.


Finally, it is impossible to deny or hide this kind of project any more - Tim Cook is coming out with Apple Electric iCar! This is the best tribute to Steve Jobs, who was going to make Apple Electric iCar himself.

The Future Of Oil: Electric Cars Have Reached The Point Of No Return With Tesla Gigafactory.

"The short answer: All cars will be electric and the rest is history. If you like some details you are welcome! Read more."

Lithium Race: General Electric Bets Big On Battery Energy Storage Systems.

  We have the very important announcement for the lithium battery space. Another corporate heavy weight enforces lithium technology for energy storage. GE is involved in the markets all over the world and its ability to integrate complex energy systems including Wind and Solar will bring the next catalyst to the adoption of distributed energy generation systems. We are at the tipping point for the mass market in Solar and EVs and GE involvement brings another level of development to our Lithium race. All world is going green and electric with Wind and Solar and lithium technology allows it to work 24/7.

Lithium Technology Powers Your iPhone, Tesla's Cars And NASA's Mars Rovers.

  "Business Insider is taking lithium story to the mainstream investors. This market is very small, still under the radar screens of the majority of investors and masqueraded by the carnage in commodities. Obama's Clean Power Plan and China's Strategic Industry Development Plan will create the mass markets in electric cars and home energy storage allowing solar power to work 24/7. Lithium is at the heart of this technology empowering Green rEVolution.
  Lithium market is very opaque and real information is often hidden from the public among outrages claims and promotions from different companies and journalist just jumping on the hot subject. On this blog I try to bring you the best industry experts with their opinions and up-to-date developments in lithium market. Read more."


General Electric: From Oil to Lithium

Jeff Nevil

Despite cutting over 250 jobs recently at its Lufkin oil unit in Texas, which is owed largely to the continued slump in global oil prices, other forms of energy still continue to be profitable for GE as the company announced it had signed its largest battery energy storage deal in the history of the company. The deal, in partnership with Coachella Energy Storage Partners, will see GE manufacturing custom 30-MW battery energy sources to be provided as part of CESP's ongoing supply contract with the Imperial Irrigation District.

GE's lithium batteries won the contract because they provide an all-in-one energy solution at the most competitive price, according to CESP's deal brokers. The deal includes an integrated approach to the provision of an energy storage solution, configured using mostly GE patented technology including MARK VI controllers, Brilliance MW inverters, Prolec transformers, and of course GE's lithium ion batteries, all housed in a custom built ion gauge enclosure.

The deal marks GE's third ion battery based energy storage project since entering the market two months ago. The corporation is now in direct competition with the California based Con Edison Development, and Convergent Energy and Power in Ontario, both of whom have been developing ion based energy projects for years. GE is hoping to take a share of the market by offering custom energy storage solutions at a much lower price-point.

The continued shift of GE's energy strategy, moving away from oil and into more environmentally friendly renewable resources, will be welcomed by green energy campaigners. In response, Anne McEntee, CEO of GE's renewable energy division reiterated that she'd been listening to the growing customer demand for better energy sources, and that part of the responsibility would lie in its client partnerships and how well they themselves utilised the greener energy options on offer.

After announcing the deal, GE's stock prices rose slowly but surely, with a number of long-term financial analysts advising consumers to buy GE, including UBS analyst Shannon O'Callaghan and William Blair's Nicholas Heymann, both averaging at a target stock price of $31.

Compare this to its struggling oil division, which purchased Lufkin in 2013 for an estimated $3.3 billion. The move was intended to boost its presence in the oil market, which has since hit hard times and is still showing little signs of improvement. Despite the 250 cut jobs only accounting for a small percentage of its 44,000 total, this represents a financial cut of over $600 million, or 1/6 of its initial purchase price. This brings the total job cuts from Lufkin at 800.

'Increasingly challenging market conditions' have been cited as the primary reason for the job cuts by GE. Oil prices currently sit at a six-and-a-half year low, priced at roughly $42 per barrel, which is over 50% less than last years' price of $103 per barrel. To make matters worse, the continued search for viable oil is thought to be becoming far more difficult, contributing to regional instabilities in conflict areas such as Iraq, as well as economic woes in oil rich nations such as Nigeria and Venezuela.

Whilst this drop has put pressure on GE's underperforming oil division, there is hope that the CESP deal with instigate further alternative energy developments. The move away from oil should not only improve the revenues of GE, but also the consumer choice for truly renewable and safer energy resources."

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