GE versus Siemens: why this battle for Alstom energy business ?

A number of news outlets are reporting today about an interesting development the race to buy French engineering group Alstrom. For example, Jeremy Bogaisky of Forbes writes:

The board of the struggling French industrial company Alstom formally accepted a net $13.5 billion all-cash offer from General Electric (GE) for its energy businesses Wednesday, giving the U.S. conglomerate a leg up over a bid from rival Siemens that the French government favors.

To assuage the concerns of President Francois Hollande’s administration over job losses, GE CEO Jeffrey Immelt promised to increase headcount in the country and make it GE’s global base for its steam turbine, electric grid, offshore wind and hydropower businesses.

I am quite intrigued by the battle between GE and Siemens for the Alstom energy business. It consists mostly of steam engines for coal and (especially) french nuclear plants (building and maintenance). Is this strategic positioning for things to come ? If the E-Cat report is positive, and an industrial use of the Hotcat for electric production is feasible in the near future there is of course a gigantic market to be taken.

The ripe fruits would be:

1/ Dangerous Nuclear plants. Especially in France stress tests seem to have been mellow because there is simply no short term alternative given the 75% reliance on Nuclear power.

2/ Coalplants which are the worst polluters in terms of CO2 and NOX and should urgently be taken off the grid.

Both specialities of Alstom.

Michael S

  • atanguy

    To me Alstom,GE and Siemens are linked to old energies fossil and nuke,it’s better to look at the future: Tesla,Google and VW

  • GreenWin

    The New Fire Perfect Storm:

    The WSJ writes a Marketplace story today (May 1, 2014) detailing a rift between elites Alstom CEO Patrick Kron and the French government Economy Minister. Kron and Alstom closely avoided bankruptcy several years ago by accepting a $5B government bailout. Economy Minister Arnaud Montbourg believes Alstom, like USA’s General Motors is a prestige engineering company and to sell is tantamount to national betrayal.

    But Alstom is not strong financially. Their post tax net income is not impressive. Where they could excel is with dramatic new technology – as in LENR powered gas and steam turbines. GE, we know is working on NASA’s SUGAR project to design LENR-based ultra-green aircraft. That contract is in Phase II, or possibly a classified later Phase. NO energy exec worth their salary is unaware of Sweden’s Elforsk tests of the E-Cat or it’s underlying technology.

    This describes a Perfect Storm between big government, and big business. Just as one would expect when commercial interests battle with government-controlled institutions. Simply, most government institutions will oppose LENR, as it undermines so many of their carefully managed knowledge monopolies and status quo. Big business cannot reject a disruptive new technology representing enormous income to company and shareholders. Any management doing so will be summarily terminated.

    Thus we see the beginnings of the very drama many of us expected when Dr. Rossi first publicly introduced the LENR-based E-Cat in 2011. At that time here on E-Cat World, many comments reflected the evolving entertainment factor in disruptive technology. Much popcorn was consumed. The show is only going to get more interesting with Earth’s biggest government and industrial players battling for position on the global energy stage. It’s been a fun three years… and the storm clouds are still gathering. By all means, stay tuned!

    • bachcole

      I doubt the entire scenario. Too many people still don’t believe that LENR+ is real.

  • GreenWin

    Blacklight Power investor Pepco has been acquired today by Exelon for $6.8B in cash. Exelon is one of three giant nuclear utilities predicted to fail by Wall Street investment advisers Morningstar. What is unclear is how much of Blacklight’s extensive patent portfolio and ongoing LENR research will Exelon gain access to. http://www.bloomberg.com/news/2014-04-30/exelon-said-to-agree-to-acquire-pepco-for-more-than-5-4-billion.html

  • Gerard McEk

    Clearly, it will take at least 10 years before LENR becomes significant in the energy market, if Rossi proves his Ecat to be a reliable energy source. Still, I would not invest in energy companies like Alstom. If the main stream media pick-up the hopefully positive results of the second Ecat test, then the shares of the energy companies will drop dramatically. The drop maybe less when these companies ensure they are also involved in LENR and have links with Rossi, Brillouin or Defkalion. I am sure Siemens is not interested in the nuclear part of Alstom. Maybe they are playing poker?

    • Buck

      What’s your definition of “significant in the energy market”?

      • Gerard McEk

        Significant on the energy market means that the Ecat starts to influence peoples decisions in this market.

        • Buck

          Gerard,

          IMO, it will be far sooner than 10 years. But, it is important to recognize we are likely working the different definitions for ‘significant’, ‘people’, and ‘market’. I’m guessing you are probably focusing on the mass consumer market.

          I however, am focusing upon the early innovators and adopters who will likely begin to impact some of the industrial markets within 6-12 months of when an ‘industrial strength LENR device’ is proved. The impact of those first companies bringing an industrial LENR device into the business market will be profound.

          It is my hope that the pending 3rd Party LTT report will be that proof.

      • Gerard McEk

        Also Andrea Rossi agrees that the market is the most important ‘commercial’ Ecat can have. This is Andrea’s reaction on a question I asked a few days ago (clearly he is limited in what he can disclose):

        You are right, the final word is of the market. We are working.
        Warmest Regards,
        Andrea

        Il 2014-04-28 07:13 Gerard McEk ha scritto:
        Dear Andrea,
        No doubt you are also awaiting the publications of the second
        independent tests and I am sure you will know a bit more about it that
        most of your followers.
        I obviously hope that the result will be very positive, but even then
        we may doubt that the main media will publish it, if I look what
        happened of the first convincing test.
        Another way is to bring something on the market that proves itself.
        How far are you (IH) in the development. When can the first
        commercially available product be expected on the market?
        Do you have other ways in mind to spread the great news of a new energy source?
        Gerard McEk

  • Charles

    It will take a lot of analysis to figure out the gain in acquiring 10,000 FRENCH workers. The greetings from the workers to their new bosses, GE, will probably be 6 month off-and-on strike just to say: “Hello, guess who we are.”

  • GreenWin

    “Public support in France for nuclear power has traditionally been strong but is looking shakier since the 2011 nuclear reactor meltdown at Japan’s Fukushima facility following a massive earthquake and tsunami.

    And French President Francois Hollande has said he wanted to cut the share of atomic energy in France’s electricity mix to 50 percent from 75 percent by 2025, reduce oil and gas consumption
    and boost renewable energy.”
    http://in.reuters.com/article/2014/04/30/france-nuclear-idINL6N0MZ4J120140430

    The introduction of commercial LENR will devalue fission nukes, guaranteeing French decommissioning their fleet of near 40-year old plants. This creates huge market opportunity. Do not forget that GE has engineers contracted to design NASA’s LENR implementation of SUGAR – “Subsonic Ultragreen Aircraft Research” Phase II. GE knows all about LENR.

    • Obvious

      If the Germans stay out of nuclear power, France might increase to fill the German market needs.

      • GreenWin

        No. Germany will not buy French nuke energy because they already decided to end nukes as unsustainable. Germany will probably be an early investor in LENR-powered microgrids.

        • Obvious

          I agree that the Germans won’t want to. But they can’t/shouldn’t keep on burning coal like they currently do, and customers don’t care where electricity comes from once the brown outs start.

          • GreenWin

            They are not burning coal simply because it cannot compete. In fact Germany is the world model for centralized utilities’ “Last Stand.”

            “Electricity companies are “fighting something of their
            last stand,” Christine Lieberknecht, the Christian Democratic
            Union premier of Thuringia state, said in an interview. “In a
            few years, nobody will even talk about it anymore because the
            technology for decentralization of power production and energy
            self-determination will make such strides.”

            http://www.bloomberg.com/news/2014-04-16/merkel-ally-sees-german-big-energy-in-last-stand-for-dominance.html

            • atanguy

              Let the fossils rest in peace!
              This, of course, includes Nuclear fission fossils as well ;-)

  • Curbina

    I would be very surprised is this has anything to do with LENR. I’d say is much more related with a struggling economy and with a gigantic engineering company that has gone out of big projects to stay profitable and looks like a bargain for the even more gigantic energy companies that have been competing with them for the last 15 years.

  • Daniel Maris

    Hmmm…I don’t know. We’ve had a lot of speculations about such acquisitions which have amounted to nothing.

    But it’s certainly one to watch. I can’t imagine France is looking to run down its nuclear energy plants any time soon.

    Still, I would be interested to hear others’ views.

    • Ophelia Rump

      It does not have to be positioning for something soon, just positioning.
      If you know that in five years a particular market is going to become tremendously profitable, you start acquiring seats at the table.

    • BroKeeper

      GE is investing more into microgrid architecture using the latest MCS (Microgrid Control System) components. This looks like competitive positioning for local distributive energy by breaking large utility grids into smaller ones. They know about the E-Cat world to come.

      http://www.ge.com/de/geschaeftsbereiche/digitalenergy/files/MicrogridControlSystem.pdf