Our readers may recall our early coverage of China's power shortages and our subsequent analysis of power sources and transformer upgrades. Today, we focus on the surging gas turbine sector, exemplified by Jereh Group's morning limit-up. Since May 2025, Jereh has secured two $100 million orders, plus leasing contracts, totaling $250-300 million (≈¥2 billion) from a North American tech giant, with potential for expansion-driven incremental orders—a key market driver.
**Gas Turbines Explained** Gas turbines (Gas Turbine) convert thermal energy into mechanical work via continuous gas flow. As the "crown jewel" of equipment manufacturing, they reflect national industrial prowess and dominate energy systems. Their advantages include: - **Eco-friendliness**: Liquid/gas fuels with near-zero residue emissions and purifiable exhaust. - **Operational agility**: <20-minute cold-to-full-load transitions, ideal for peak shaving. - **Space efficiency**: Eliminates coal storage/transport infrastructure. - **Power quality**: Minimal output fluctuation via rotary motion. Classified by turbine inlet temperature (E/F/H/J-class, with H/J at 1,600°C) and size (micro/small/medium/heavy-duty), heavy-duty units dominate.
**Global Market Leaders** Per Global Energy Monitor (GEM), GE Vernova (55GW under construction), Siemens Energy, and Mitsubishi Heavy Industries control two-thirds of global gas turbine projects. In Asia, GE Vernova leads with 38% share, followed by Mitsubishi (17%) and Siemens (16%).
**Comparative Advantages** - **vs. Nuclear**: Gas plants complete in ≤4 years (vs. nuclear's 9–10 years), aligning with AI data centers' 2–4-year build cycles. U.S. F/H/J-class turbines, commercialized since 2010, skip lengthy R&D. - **vs. Renewables**: Gas projects secure permits in ~10 months (vs. solar/wind's 30+ months) and deliver stable 24/7 power, critical for AI data centers. - **vs. Diesel**: 20-minute cold starts (1-minute hot starts), smaller footprint, lower maintenance/emissions, and remote operability.
**Cost Efficiency** Per IEA, U.S. gas power's 2020 LCOE was $45/MWh, projected to drop to $42.72 by 2028 (EIA data), bolstering its appeal for energy-intensive sectors.
**HRSG: The Untapped Potential** Heat Recovery Steam Generators (HRSG) capture 400–600°C exhaust heat to produce steam for secondary power generation, boosting system efficiency by 15–20%. Currently, North America faces a 50% HRSG supply gap for heavy-duty turbines, expected to peak by 2027. While turbine prices have doubled, HRSG prices lag but may surge post-2026.
**Market Barriers** 1. **Certification**: ASME compliance and OEM approvals are mandatory. 2. **Customization**: Tailored designs for turbine models/environments raise complexity. 3. **Trade Policies**: Tariffs necessitate local production for North American supply.
**Chinese HRSG Exporters** - **Boi-Tech (BYTH)**: Vietnam Phase I (4 lines, now operational) and Phase II (8 lines by 2026) target 0.5GW turbines for North America. Total capacity may expand to 20 lines. - **Xizi Clean Energy**: Landmark projects include Pakistan’s 2×9HA plant (world’s largest) and Nigeria’s 12-unit 9E project, exporting to 50+ countries.
**Valuation** Current HRSG lines average $10–12 million pre-price hikes, with 20–30% net margins potentially rising to 30–40% amid shortages.
With North America's power crunch, gas turbine/HRSG demand will remain robust—stay tuned for updates.
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