On the surface, that success appears to be largely from the growing demand for the company’s gas turbine business. But, just like the wider changes happening in the energy system today, GE Vernova’s growth story is much more complicated. The company has thus far avoided investing in new gas turbine factories, its R&D budget has increasingly flowed toward its electrification business, and growing sales to new tech customers have forced out-of-the-box thinking.
Asked for a succinct description of his business today, Strazik frames it around delivering the “resilient electron,” whatever the source of that electron may be. GE Vernova's edge comes from a refusal to over commit to any singular energy future. In an era of competing narratives that no one can credibly adjudicate, the winning bet may be to sit at the center of all of them.
It can sometimes sound almost as though the company is a pure-play gas turbine maker. But in striking contrast to some of the customers clamoring for the product, Strazik takes a more measured approach. He has invested in existing gas turbine manufacturing facilities to try squeezing out capacity, but has declined to commit to building new ones, citing a range of uncertainties in the market. Construction firms, gas pipelines, permitting, and grid interconnection are bigger challenges than production capacity. “Even if we could wave a magic wand and create more gas turbines, the reality is, there aren’t pedestals in the world that are simply waiting for the gas turbine,” he says.
Serving this new type of customer has pushed GE Vernova to adapt, says Strazik. In a way, its gas prowess has opened the door for the company to sell other technologies. Big tech demand is pushing GE Vernova further down the power value chain, from turbines and grid equipment outside the data center toward electrical equipment and software closer to the rack.
Clean tech provides yet another source of optionality. Tech companies, for example, are increasingly ordering generators from GE Vernova outfitted for potential future carbon capture (though many barriers remain to actually retrofitting them so they can do that). The company has also made a long-term bet on small modular nuclear reactors (SMRs) as it works with partners to build its first in Canada and potentially many more in the U.S. The goal is to rebuild the nuclear supply chain that has fallen dormant in the U.S. to give SMRs a long-term future. And, at a time when wind has become a dirty word in Washington D.C., Strazik isn’t keen to abandon it. Today’s wind business is mostly servicing and repairing units that have already been installed. In the future, though, it could be something more. “This certainly isn’t the moment, in my view, that you walk from wind,” he says, adding that “it’s clearly at volume bottom, at least in the U.S.”
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