These days, the sky
is no longer the limit at Pratt & Whitney. Earthbound versions of the
company's well-known aircraft engines are making their mark in the electrical
power industry, where demand for generating equipment has never been higher.
Industrial gas turbines
have been an adjacent business for Pratt & Whitney for about 40 years,
chugging quietly alongside the company's primary commercial and military
jet engine business.
But in the last few
months, the company's aeroderivative industrial turbine business has undergone
a transformation, gaining a new name, Pratt & Whitney Power Systems (PWPS);
a new president, Ellen Smith, and a new sales, marketing, installation
and service subsidiary, P2 Energy of Marietta, GA.
"The recent
situation in California illustrates how products like ours can help supply
power where it's needed. With our range of equipment from 150 KW to 60
MW, we fit well at the distribution substation level, or to provide power
for a large commercial facility such as a mall or office building,"
Smith told World Cogeneration.
Power Systems' flagship
FT8 gas turbine in "Twin Pac" configuration is capable of providing
a power plant's entire output of up to 60 MW. The company also offers
a lower power series of turbines based on Pratt & Whitney Canada's commuter
aircraft engine technology.
More than 1,200 natural
gas-powered PWPS turbines are in service around the world, many of them
dotting the landscape of rural North America. New products such as the
FT8++ with a 25 percent increase in power over the present FT8, are in
development.
The company also
sells environmental upgrade "e-kits" that significantly reduce
NOX and CO emissions and extend the life of the FT4 and GG4 systems that
receive them. PWPS is part of United Technologies Corp. (UTC), which includes
such heavy industry companies as Otis Elevator, Carrier air conditioning
and Hamilton Sundstrand controls. In the power generation world, UTC also
owns International Fuel Cells, a growing Connecticut-based division that
produces a 200 KW commercial power unit and has sold more than 200 systems
since 1991.
Smith, who spent
19 years at GE Power Systems before joining Pratt & Whitney, sees product
portability as a major selling point. "We're looking at north-south
city pairs that might be able to share FT8 systems seasonally. Our product
can be installed where it's needed in one season and then moved over roadways
to a different power grid at another time of year." She also notes
that the PWPS product line can generally gain site approval more easily
and be installed much faster than higher-output systems.
Three years ago,
the industrial power business at Pratt & Whitney logged only $80 million
in sales and was losing money. Last year, it recorded $300 million, its
best year ever. Smith's goal is to exceed $1 billion within five years.
With expected advances in fuel cells and sales to the homeowner and automotive
markets, UTC is projecting $4 billion in power generation product sales
by 2010.
"Deregulation
and demand have created an environment where we have countless opportunities.
Our technology has always been solid and now with P2 Energy we have the
service and marketing strength we need," she says.
The segment of the
power generation market PWPS addresses has ample competition, but much
of it is from non-U.S. based companies like Siemens and Rolls-Royce, Smith
notes. Building a company from modest beginnings gives her the opportunity
to differentiate PWPS from the competition in other ways, too.
"The culture
we're driving in this new company is to be flexible, listen to our customers
and provide them with what they need. We don't offer a one solution fits
all concept. We work with our customers one on one," she says.
William E. Thompson,
will serve as president and chief executive officer of P2 Energy. He was
formerly a senior partner and director of global marketing and sales for
Black & Veatch. P2 has officers in Marietta, GA and Houston. Gary Hilberg
and Craig Hurlbert are joining Thompson as vice presidents. Both were
formerly with PIC Energy Group.
Pratt & Whitney
Power Systems (PWPS) will supply 100, ST5 industrial gas turbines to DTE
Energy Technologies of Farmington Hills, Michigan.
The engines will
be delivered over a 12-month period, starting in early 2002. The ST5 is
a new mini-turbine being developed by PWPS primarily for use in distributed
generation applications.
PWPS also announced
the sale of 12, FT8 Twin Pacs to Northern Alternative Energy, based in
Minnesota.
|