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GE, China Huadian Sign JV To Develop Aero Gas Turbines -Report
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Today : Tuesday 23 August 2011State-owned power company China Huadian Group and U.S. conglomerate General Electric Co. (GE) Tuesday signed an agreement to set up a joint venture to develop aeroderivative gas turbines, core devices used in distributed energy systems, state-run Xinhua News Agency reports Tuesday.

Distributed energy systems, also known as distributed energy resources, refer to the generation of energy from small energy sources, Xinhua said.

The $100 million joint venture will be called Huadian GE Aero Gas Turbine Equipment Co. Ltd., with Huadian owning a majority share of 51%. A production facility will be built in Shanghai, with construction expected to be completed in 2013, according to Xinhua.

"It is the first step for us to introduce key DER technical equipment from the U.S.," Huadian vice manager Deng Jianling said in the Xinhua report. "In the next stage we will gradually localize the technology."

The move came after the two companies inked a letter of intent for a strategic cooperation in the energy sector during Chinese President Hu Jintao's visit to the U.S. earlier this year.

The cooperation will help introduce two types of aeroderivative gas turbines to China and some of these components will be produced