Results of distribution of GE Jenbacher

Cooperation with GE Jenbacher, in the conditions of Ukrainian realities

After the first year of our joint work (2005), at the seminar of distributors, which takes place every two years, where representatives from about three hundred countries of the world gather, the company presented the Sinapse ChNPP award as the best start-up company in the GE family. The peculiarity of such an award lies in the fact that only one company is awarded this mark at the seminar.

And in 2006, GE Jenbacher and PRPE “Synaps” received awards from the magazine “Power Engineering”, for taking second place in the world in connection with the joint implementation of the largest environmental project in the world, on coal mine methane in Donetsk, at the mine named after. Zasyadko.

The Sinapse company did not just sell modules and provide after-sales service, the main advantage of Sinapse is that it, at many of the largest facilities, performed the functions of a General Design and General Contractor. As a result, the company achieved perfection in their implementation, which made it possible to raise the image of GE Jenbacher equipment in Ukraine as the most efficient cogeneration equipment, including in environmental projects.

Yes, the crisis began in 2008, first the world crisis, then the revolution, the war, and finally the inflationary fall of the hryvnia. Throughout this period, there were episodes of debts to the GE plant, but they always closed, with some delays. Here we are very grateful to the management of GE for their support. During this period, however, PNPP “Synaps” confidently held more than 50% for natural gas and more than 90% for complex gases of the cogeneration market of Ukraine. Almost all objects until 2017 in Ukraine under the “Green Tariff” in terms of cogeneration were implemented with the participation of Synaps.

Distribution of the cogeneration market share in Ukraine at the beginning of 2017

The history of the completion of GE Jenbacher in Ukraine:

In 2014, 100% of the Ukrainian market went to Synaps, namely the supply of six GE Jenbacher cogeneration modules – this is all that was brought from cogeneration equipment to Ukraine. But due to the four-fold depreciation of the hryvnia, just at the time of deliveries and payments (end of 2014), Sinapse experienced large losses of working capital due to exchange rate differences. However, all deliveries have been completed.

End of 2014 – mid-2016 Cogeneration market: for the entire period until the summer of 2016, due to a sharp fall in the hryvnia, not a single module was sold to Ukraine by any of the manufacturers of cogeneration machines. The Sinapse company contained a team of up to 400 people. exclusively at the expense of the service, which only partially covered the costs, but it was still necessary to somehow close the debts arising from inflation. The official GE Jenbacher supported Sinapse by postponing the debt. However, this situation was taken advantage of by some people from GE, who were interested in the prospect of taking control of the hyped business in Ukraine. Moreover, they had such an opportunity, in connection with the transition of ownership of Jenbacher, from GE to INNIO, another American company, when, in fact, the business rules of GE had already ceased to operate.

The second half of 2016 The financial crisis in Ukraine due to the depreciation of the hryvnia began to stabilize, there was a sharp increase in orders for the “Green Tariff”: the company Zorg LLC, a client of Sinapse, received an informal right from our curator GE Jenbacher, namely, from Alexey Pavlov, direct purchase of cogeneration modules for the Teofilsky sugar factory and for other facilities. In addition, Sergei Sabadash (at that time still an employee of Sinapse) received from the same GE curator an informal right to sell GE Jenbacher equipment (for objects developed by Sinapse) through a company proposed by the same curator. All this happened long before the end of the distribution powers of PNPP “Synaps” from GE Jenbacher in Ukraine. As a result, a number of Projects were lost by Sinapse.

Since the beginning of 2017, Sinapse was completely ignored by the GE curator for new orders, a number of announced orders for JMC320 GS-B.L modules, for far-fetched reasons, remained in the screening process for several months. As a result, Aleksey Pavlov, curator from GE, did everything possible to prevent Sinapse from placing a single order of cogeneration modules at the GE plant until May 31, 2017 (the end of the distribution agreement).

The arrival of the commission from GE Jenbacher (in April 2017), organized by Alexei Pavlov, to the Sinapse office, with the participation of his accomplice, GE officer Mr. Ovidio, who, in fact, was supposed to monitor the implementation of GE policy in the territory entrusted to him. However, the commission came to announce the termination of Sinapse’s powers in terms of distribution and service, and no proceedings were actually made.

We have always taken on increased plans for the sale of equipment, but because of the situation in Ukraine, plans were violated. However, the service plans were always overfulfilled. The request to continue at least the service contract was a categorical “no”. Nobody did any checks of Sinapse and its work at the facilities. Interestingly, the KTS Engineering company (which was chosen as the exclusive! distributor) did not carry out any activity in Ukraine earlier, all the more so close to the topic of cogeneration. That is, in fact, this company is determined by the distributor, and even exclusive, without any experience or merit, which is an unusual exception for GE. Later it became known who achieved their goals of controlling the promoted cogeneration business in Ukraine, looking at least at the fact that the official distributor of INNIO Jenbacher, KTS Engineering, buys all modules from INNIO Jenbacher not at the manufacturer’s plant, but in Slovakia, through a company controlled by Alexey Pavlov.

As a result, since January 2017, Sinapse (during the period of distribution powers still valid until May 30, 2017) has been forced to install second-hand cogeneration modules for its customers. Until mid-2017, six modules were delivered: 2 x J208 + 2 x J320 + 1 x J412 + 1 x J208. By the end of 2017, all modules had been restored, installed and put into operation.

Pseudo representatives of GE called each facility (potential sales of modules and facilities where Synaps provides services under existing contracts), and reported that it was impossible to work with Synaps, because. GE breaks off relations with them, and you need to work only with KTS Engineering. (Depriving the right of choice of the client). And this happened, among other things, before the expiration of the distribution agreement with the ChNPP Synaps. The same thing happened with the facility at MHP (Mironovsky Hliboproduct, 12 MW), our longtime client, although, as promised by GE, Sinapse was given a letter of support from GE in this project (even in the event of termination of the distribution agreement), nevertheless, those responsible from GE invaders acted contrary to the authority given to us. In the end, MHP, even after we won the tender, purchased equipment from another manufacturer. The same thing happened with similar large projects in Astarte and Vanguard.

But in the future, after the stabilization of the exchange rate in Ukraine, KTS Engineering received the Jackpot, because. many green energy facilities, prepared for implementation during the financial crisis, placed orders for GE Jenbacher equipment, as the most common and reliable functioning in Ukraine. All this was the expected result, thanks, at that time, to 16 years of fruitful work of the Sinapse team, including on the most complex and largest objects in the world, raising the authority of GE Jenbacher equipment. As a result, KTS Engineering turned out to be the most successful selling company in the cogeneration market in Ukraine, due to the fact that it was only about deliveries, and only containerized machines, and all projects and works were carried out exclusively by general contractors of biogas projects.

Despite the complete blockade of Sinapse for new orders and services (they stopped shipping spare parts to Sinapse and disconnected from the server, which made it impossible to obtain access codes for setting up modules), we still, even in these conditions, somehow fulfilled our contractual obligations to our customers . However, even to this day, without having access to distributor prices for spare parts, we continue to service some sites with Jenbacher equipment from the attached register (see the “Register of Service Contracts” section in the Reference Lists subsection).