GE and Hitachi ABB Power Grids Sign Landmark Agreement to Reduce Environmental Impact in the Electrical Transmission Industry

Rhea-AI Summary

GE Renewable Energy’s Grid Solutions (NYSE: GE) and Hitachi ABB Power Grids have announced a non-exclusive cross-licensing agreement to utilize a fluoronitrile-based gas mixture as an alternative to sulfur hexafluoride (SF₆). This eco-efficient solution notably reduces environmental impact and aims to standardize SF₆-free technology in high voltage equipment. The agreement highlights the growing commitment of both companies to aiding utilities in decreasing greenhouse gas emissions, with GE’s g³ gas showing over 99% lower global warming potential compared to SF₆.

Positive

• The cross-licensing agreement will accelerate the use of eco-efficient fluoronitrile-based insulation gas, crucial for reducing greenhouse gas emissions.
• GE's g³ gas shows over 99% lower global warming potential compared to SF₆, offering a significant environmental advantage.

Negative

• None.

GE Renewable Energy’s Grid Solutions business (NYSE: GE) and Hitachi ABB Power Grids Ltd. announced today a non-exclusive, cross-licensing agreement related to the use of an alternative gas to sulfur hexafluoride (SF₆) used in high voltage equipment. This fluoronitrile-based gas mixture has a significantly reduced impact on the environment compared to SF₆.

Under this landmark agreement announced just before Earth Day 2021 between two global leaders in power technologies – both companies will share complementary intellectual property related to their respective SF₆-free solutions. This will help accelerate the use of fluoronitrile-based eco-efficient insulation and switching gas in high-voltage equipment as an alternative to SF₆. A recent EU Commission report concluded that fluorinitrile-based gas mixtures may be the only insulating and switching gas alternative to SF₆ when space is a constraint.

Today’s historic agreement paves the way for a standard SF₆-free solution for high-voltage equipment in the coming years. This would enable utilities and industries to accelerate their reduction of greenhouse gas emissions, while facilitating their ability to plan, as well as operate and maintain their networks thanks to standardized services and the use of the same auxiliary equipment.

For almost half a century, SF₆ gas has been the norm in the electrical power transmission and distribution industry due to its unique physical properties. It is, however a greenhouse gas that contributes to global warming if leaked. For this reason, GE and Hitachi ABB Power Grids have been investing in the development of better alternatives to SF_6.

“Utilities are becoming increasingly aware of their environmental footprint and the impact it has on their communities and the world around them. Today’s landmark agreement reinforces our commitment to help our customers to reduce their greenhouse gas emissions,” said Heiner Markhoff, CEO of GE’s Grid Solutions. “GE pioneered this fluoronitrile-based gas which we named g³ and subsequently developed a broad SF₆-free product range. Our g³ SF₆-free products have been commercially available since 2015 and feature the same compactness and performance as traditional SF₆ equipment,” he added.

“As part of our commitment towards a carbon-neutral future and accelerating the energy transition, we have chosen to work towards a standard solution to address the needs of our customers through this cross-licensing agreement,” said Markus Heimbach, Managing Director of the High Voltage Products business in Hitachi ABB Power Grids. “As a technology leader, we have always been at the frontier of gas-insulated switchgear (GIS) that became a key enabler for urbanization and installed the very first SF₆-free GIS that significantly reduces carbon footprint,” he added.

The two companies will keep the product development, manufacturing, sales, marketing and service activities of their gas solutions fully independent. Each company will continue to independently grant and set terms of licenses to its respective intellectual property, hence preserving supplier base diversity for the industry and fair competition.

Notes to Editor:

GE’s alternative to SF₆ is g³ insulating and switching gas. The global warming potential (GWP) of GE’s g³ gas is more than 99% lower compared to SF₆. More: g3 - SF6-free solutions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210421005141/en/

FAQ

What is the significance of the GE and Hitachi ABB Power Grids agreement regarding gas solutions?

The agreement aims to promote fluoronitrile-based gas mixtures as alternatives to SF₆, which are more environmentally friendly.

How does GE's g³ gas compare to SF₆ in terms of environmental impact?

GE's g³ gas has over 99% lower global warming potential compared to SF₆, making it a more eco-efficient option.

What is the timeline for implementing SF₆-free solutions in high voltage equipment?

The agreement paves the way for standardized SF₆-free solutions in high-voltage equipment in the coming years.

How will the licensing agreement affect competition in the gas solutions industry?

Each company will maintain independent control over their products and licensing terms, ensuring supplier diversity and fair competition.