GE Ecomagination Revenues Cross $10 Billion

GE Ecomagination Revenues Cross $10 Billion

GE has released its 2005 ecomagination report, showing that revenues from the sale of energy efficient and environmentally advanced products and services hit $10.1 billion in 2005, up from $6.2 billion in 2004 -- with orders nearly doubling to $17 billion.

"Ecomagination is paying off for our investors and customers," said GE Chairman and CEO Jeff Immelt. "Our advanced environmental products and services are helping customers increase their energy efficiency and reduce costs and emissions. And it is providing the growth we expected for GE, as we are ahead of our plan to reach $20 billion in annual sales of ecomagination products by 2010."

Launched in May 2005, ecomagination is GE's commitment to imagine and build innovative technologies that help customers address their environmental and financial needs and help GE grow. The report issued today will be followed by similar updates on an annual basis.

"With oil prices and other energy costs surging and with water scarcity concerns spreading, ecomagination makes even more sense for our investors today than it did a year ago," Immelt said. "Last year, we said that 'green can be green' -- that we would make money helping customers meet their environmental challenges. A year later, we know that green is green, and that it will make a difference on the bottom line for GE investors as customer interest is accelerating."

GE is also using ecomagination as a platform to improve the energy efficiency of its own operations, helping to lower costs. In 2004 and 2005, GE attacked higher energy expenditures by undertaking nearly 500 global energy conservation projects that resulted in more than 250,000 tons of GHG emissions reductions -- the equivalent of removing nearly 50,000 cars from the road. These projects are yielding substantial energy cost savings.

The ecomagination report, "Taking on Big Challenges," details GE's progress in meeting its own challenges and the broader challenges faced by customers and society. The report reviews GE's performance on its four ecomagination commitments and describes a long-term plan to meet these goals. Specifically, GE made the following progress on each of its ecomagination commitments in 2005:
  • Double its investment in clean research and development -- GE invested $700 million in cleaner technologies in 2005, well on the way to reach its $1.5 billion annual R&D target by 2010. GE also increased the number of ecomagination-certified products by more than 75% over the last year -- from 17 to 30 products.
  • Increase revenues from ecomagination products - GE reported $10 billion in revenues from ecomagination products and services in 2005 -- offering a clear trajectory to a planned $20 billion in annual sales in 2010.
  • Reduce its greenhouse gas (GHG) emissions and improve the energy efficiency of its operations- - GE is on track to reach its internal commitment. GHG emissions from operations remained flat in 2005 compared to 2004, while GHG intensity was reduced 10% and energy intensity was reduced 11%. GE is committed to reduce its GHG emissions 1% by 2012, reduce the intensity of its GHG emissions 30% by 2008, and improve energy efficiency 30% by the end of 2012.
  • Keep the public informed -- In addition to its report, GE continues to update the public via its ecomagination Web site, advertising and engagement strategies with customers and other stakeholders.
"We're off to a good start and see even more opportunity -- but we still have a long way to go," GE vice president of ecomagination Lorraine Bolsinger said. "We continue to assess how to address customers' complex and mounting energy and environmental challenges, and strive to increase the energy efficiency of our own operations. Every day, we are collaborating with our customers and others to see where we can improve and drive growth."

In addition to R&D, revenue and greenhouse gas results and forecasts, highlights from the report include:
  • Examples of eco technologies in its R&D pipeline, such as photovoltaics, biofuels, transportation initiatives with even higher emissions and fuel efficiency standards, and an offshore wind turbine project with the U.S. Department of Energy
  • Descriptions of each of the 30 ecomagination products, including desalination platforms, fuel-efficient jet engines, and the highest simple cycle efficiency gas turbine available today
  • Case studies featuring innovative partnerships with customers and countries
  • A revenue map featuring key sales wins from around the world
  • Examples of conservation projects GE is undertaking to lower its emissions and energy use
GE's ecomagination report is available online. To encourage readers to save paper and read the report online, GE will plant a tree at its Peebles, Ohio jet engine testing facility for each of the first 2,500 downloads. These trees will help offset the generation of carbon dioxide associated with growth at the facility.