General Electric (GE - Analyst Report) and Toshiba Corporation recently signed a memorandum of understanding (MOU) to collaborate for high-efficiency combined-cycle power projects across the world. Additionally, the two companies intend to team up to develop combined-cycle power generation technology and advanced steam turbine technology with high levels of thermal efficiency.

The global alliance is expected to be beneficial for both the companies which already have in-place agreements for 50-Hz and 60-Hz projects in Japan as well as in other parts of Asia. The combined entity recently won a contract to supply Flex Efficiency technology to Chubu Electric Power’s Nishi Nagoya thermal power plant in Japan. GE’s Flex Efficiency technology harnesses natural gas to ensure efficient usage of renewable energy. The Flex Efficiency portfolio will reduce emissions and its flexibility enable utilities to deliver power quickly as per the need, thus balancing the grid cost effectively.

The customers will also reap the benefits of the sophisticated engineering, procurement and construction solutions of Toshiba as well as new technology of the Flex Efficiency Portfolio, which will meet the energy demands around the globe. The alliance will have high-efficiency steam turbine and generator technologies that will entail high plant efficiency, better engineering solutions and better fuel efficient plants in the future.

General Electric is one of the most diversified technology and financial service corporations in the world, competing with industry big wigs such as ITT Corporation (ITT - Analyst Report) and Federal Signal Corp (FSS - Snapshot Report). Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. GE Power & Water provides customers with a wide array of power generation, energy delivery and water process technologies and helps them in addressing the challenges locally.

General Electric currently has a Zacks Rank #4 (Sell). One of its competitors, Tyco International Ltd (TYC - Analyst Report) carries a Zacks Rank #1 (Strong Buy).