NEWTOWN, Conn. -- The success of the SGT-8000H family of gas turbines in the current environment of overcapacity, depressed prices, and large inventories of unsold or underutilized units must be a significant relief for Siemens. The company has made no secret of the fact that it is finding the current market an exceptionally difficult one, as it struggles to hit its sales and profitability targets. The SGT6-8000H has an efficiency of 60.75 percent in combined-cycle operation, making it one of the most efficient gas-fired power plants in the world.
It is significant that every combined-cycle power plant currently being projected envisions a choice between the SGT-8000H and the GE 9HA. Mitsubishi's J-series turbines also compete in this space, but their profile seems to be lower at this point. However, as the situation is fluid, this can easily change.
In June 2015, Siemens received a massive order from the Egyptian government for 24 SGT5-8000H gas turbines to equip three new power stations. The Egyptian order was followed by two from China. The first of these, signed in 2017, was for a combined heat and power station in Hong Kong. It was followed by an order for a similar facility in mainland China. Both of these orders (totaling three gas turbines) were for SGT5-8000H units.
The SGT6-8000H has also won a string of orders from the U.S., including the Lordstown Energy Center near Cleveland in Lordstown, Ohio. The turnkey solution for the facility will include two SGT6-8000H gas turbines, one SST-5000 steam turbine, two SGen-1200A generators as part of the gas turbine packages, one SGen-2000H generator as part of the steam turbine package, and a Siemens SPPA-T3000 integrated plant control system.
One very interesting feature of the Lordstown Energy Center contract was that Siemens took a 27 percent share in the investment and equity of the facility. This was probably a major factor in winning that highly critical order. Other companies will undoubtedly observe this tactic at work and attempt to emulate it.
If the rate of success established by Siemens over the last five years continues, it is probable that this turbine will become the go-to option in the H-class market, giving Mitsubishi, in particular, a good reason to be concerned. The Egyptian order gives Siemens dominance in the short term, but the sales of Siemens GE and Mitsubishi are likely to be running almost level in the medium term. Beyond that, the modernity of the Siemens design will be telling, and we expect to see the company pull ahead of its rivals over the long term.
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