(Yicai Global) Nov. 6 -- Shanghai Electric Power of the State Power Investment Corporation, Shanghai Electric and Italy's Ansaldo Energia signed a framework agreement on gas turbine equipment and related services that will see them introduce the first class H GT36-S5 gas turbine to China at Minhang Power Plant.

The deal was sealed on the first day of the China International Import Expo in Shanghai.

Ansaldo, with SPIC as its most important partner, is looking to make inroads into the Chinese market and sell more gas engines. The Italian power engineering company plans to participate in the SPIC's national heavy-duty gas turbine project, Ansaldo Chief Executive Giuseppe Zampini told Yicai Global.

The gas turbine set is the first class H model that will be introduced to China after Shanghai Electric acquired a 40 percent stake in Ansaldo and shared intellectual property rights with it. The gas turbine has an output capacity that is double that of domestic mainstream gas turbines, and boasts 62 percent energy efficiency.

The class H heavy-duty gas turbine will be built after the contract signing and is expected to be put into production in two to three years.

Both parties possess technology, Shanghai Electric Power Chairman Wang Yundan told Yicai Global. The overseas suppliers have their proprietary technology and Shanghai Electric Power has its own, Wang said. Combining them will bring greater success, he added.

Shanghai Electric Power has gained experience in energy supply and demand after 40 years of reform and opening-up, Wang said, adding that the China International Import Expo provides the opportunity to achieve a win-win situation for global technologies, and this is the only way toward the next step.

The SPIC will organize two collective signing activities during the CIIE, with nine of its units buying nuclear energy, gas turbines, coal, manganese ore, consulting services, mining equipment and pipelines.

Editor: Bivash