Wednesday 22 May 2024

GE Vernova, Sonelgaz to boost Algerian grid infrastructure

ALGIERS, April 20, 2024

GE Vernova's Grid Solutions business, a leader in advanced grid technologies, and Sonelgaz, Algeria's national electricity and gas company, are expanding existing capabilities at GE Algeria Turbines (GEAT) for the deployment of grid solutions. 
GEAT is a joint venture founded in 2014 between Sonelgaz and GE Vernova that has manufactured skids and turbine auxiliaries, as well as rolled out gas turbines, steam turbines, and control systems in Algeria. 
One-of-a-kind facility for GE Vernova on the African continent, it is located in Ain Yagout, Batna.           
GE Vernova had recently announced its spin-off from General Electric (GE) and trading as an independent company on the New York Stock Exchange under the ticker symbol GEV. 
In addition to the GEAT joint venture with Sonelgaz, the US group has a strong legacy of contributions to the development of Algeria’s energy sector, providing power generation, transmission, and distribution solutions, as well as digital applications, and employs over 300 people in the country.
Announcing the expansion, GE Vernova said this strategic agreement, effectuated through the amendment of their existing joint venture, represents a significant step towards achieving Algeria's energy objectives. 
It demonstrates a shared commitment to accelerating sustainable energy development, localizing industrial capabilities, and promoting economic growth.
Given the development needs of Algerian power grids, Sonelgaz and GE Vernova agreed, under an amendment to the shareholders’ agreement entered into in 2014, to diversify GEAT's core business by directing it towards the manufacture of high and extra-high voltage substations, stated the US group. 
Other power grid automation equipment and solutions for efficient and reliable power transmission are also expected to be supplied by the joint venture, enabling the integration and complementary use of renewable energy sources, it said.
The localization of this industrial production has the potential to further strengthen national engineering capacities and create additional job opportunities in Algeria, it added. 
Philippe Piron, President and CEO of GE Vernova's Electrification Systems businesses, said: "We are honoured to expand our relationship with Sonelgaz. Through this collaboration, we aim to roll out advanced Grid Solutions technologies in Algeria, which will modernise the country's grid, enhance its efficiency, and accelerate the country's energy transition."
"By expanding our relationship to include grid solutions, we are committed not only to localizing grid production but also to fostering the growth of local talent and creating job opportunities," he stated.
This collaboration with GE Vernova's Grid Solutions business marks an important step in Algeria's energy transition, as well as in the development of the country's capacity to produce equipment for the transmission grid. 
It is the cornerstone of contributions by both parties Sonelgaz and GE Vernova to improve the infrastructure of the Algerian network, ensure better access to electricity transmission facilities throughout the country, improve efficiency and enable the connection of renewable energy production facilities.
Sonelgaz CEO Mourad Adjal said: "In collaboration with GE Vernova, we are confident in both partners' abilities to build a more resilient and efficient energy grid for the future. This new trajectory of collaboration between the two parties is in line with the orientations of the country's highest authorities in terms of national integration."
With almost 50 million inhabitants spread across Africa’s largest country by area, Algeria is diversifying its energy mix to include renewable sources, such as solar and wind, to meet the growing demand for energy and transition to a lower-carbon future.  
"The tieup will enable the progressive domiciliation of the manufacture of equipment and materials (high and very high voltages) for electricity transmission structures,' noted Adjal. 
"This means the transfer of knowledge, know-how and expertise in these fields, which is totally new in our country, as well as an increase in the national potential for exporting this type of equipment in the long term, which will contribute considerably to reducing the country's import bill," he added.-TradeArabia News Service


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