GE Vernova: Top Reasons to Invest in the Electrifying Potential of the 2024 Spinoff

GE Vernova is a spinoff of General Electric's energy business, supplying products and services to energy companies and utilities. The company has been one of the better-performing stocks of 2025, with electrifying potential due to its focus on renewable energy, grid modernization, and digitalization. Top reasons to invest in GE Vernova include its strategic position in the energy sector, strong backlog, and potential for future growth.

GE Vernova, Inc., a leading player in the energy sector, has announced a significant investment of CAN$22.2 million in Quebec factories to support the province's energy goals. This investment, part of a larger plan to meet Canada’s and Quebec’s increasing energy demands, is set to expand the company’s hydropower Sorel-Tracy and grid La Prairie sites.

With Canada’s energy needs forecasted to double by 2050 and Quebec projecting a demand increase of up to 35% by 2035, the province is undertaking a capital expansion worth CAN$150 billion. This expansion is part of Hydro-Québec’s approximately CAN$200 billion 2035 Action Plan, aimed at upgrading the grid, expanding hydropower and wind power capacity, and modernizing infrastructures. GE Vernova’s investment aligns with these objectives to enhance energy resilience and ensure long-term energy security.

The investment includes a CAN$16.2 million expansion at the hydropower manufacturing facility in Sorel-Tracy. This expansion, supported by a government loan of up to CAN$2.5 million, will extend the site’s square footage by about 20% and install new equipment for large-scale component manufacturing. The project is expected to create 28 new jobs, in addition to the 75 existing jobs at the facility.

The Sorel-Tracy facility is a key hub for advanced turbine production, powering hydropower projects across Canada and globally. With nearly 70 years of expertise, the site focuses on modernizing critical hydropower infrastructure. GE Vernova’s Hydro Power business counts almost 500 employees in Canada, with nearly 100 in Sorel-Tracy. The expansion will enable the company to meet the strong demand for hydropower, particularly for modernisation projects in Canada.

GE Vernova is also investing over CAN$6 million to expand capabilities at its La Prairie facility, which specializes in high-voltage equipment for power transmission. This expansion comes as the facility celebrates 60 years of continuous innovation and underscores its commitment to adapting to changing customer needs.

The expansion of Sorel-Tracy and La Prairie facilities is crucial for securing Canada’s energy future. The enhanced capabilities will enable key customer Hydro-Québec to advance its ambitious Action Plan by meeting the growing demand for dead tank circuit breakers, essential components for grid reliability and resilience.

Frederic Ribieras, CEO for the Hydro Power business at GE Vernova, noted that the expansion is necessary to effectively execute projects in a capacity-constrained industry. The company has established long-term collaboration agreements with various hydropower asset owners, providing early engagement and close collaboration for supply chain planning and design.

GE Vernova and Ontario Power Generation (OPG) signed a 15-year framework agreement, granting GE Vernova exclusivity to modernize up to 25 units at OPG’s hydropower stations in the Niagara region. The turbines for these projects will be manufactured in Sorel-Tracy.

Heather Chalmers, CEO Canada, GE Vernova, emphasized that the company’s technology provides close to 40% of Canada’s electricity and that these investments represent a commitment to securing Canada’s energy future and helping customers meet the doubling of demand while accelerating Canadian innovation and technology development.

The plans were unveiled at a ground-breaking ceremony in Sorel-Tracy, with the presence of Carlos Leitão, Parliamentary Secretary to the Minister of Industry for the regions of Quebec, Jean-Bernard Émond, Member of the National Assembly for Richelieu, Patrick Péloquin, Mayor of Sorel-Tracy, and Hubert Bolduc, Président of Investissement Québec International.

Jean-Bernard Émond noted that GE Vernova is a major player in the ongoing energy transition and that the company’s project will meet strong demand for hydroelectric power, particularly for modernisation projects in Canada. Patrick Péloquin concluded that Sorel-Tracy occupies a strategic position in the hydroelectric industry and that the investment by GE Vernova will have positive impacts for several Sorel-based companies specializing in the production of parts for the hydroelectric market.

GE Vernova’s investment in Quebec facilities underscores its strategic position in the energy sector and highlights its commitment to renewable energy, grid modernization, and digitalization. The company’s strong backlog and potential for future growth make it an attractive investment opportunity for investors and financial professionals.

References:
[1] https://www.energyglobal.com/other-renewables/28082025/ge-vernova-to-invest-in-quebec-facility-expansion-to-support-energy-goals/amp/
[2] https://www.ainvest.com/news/ge-vernova-pioneering-ai-powered-energy-transition-vision-carbon-negativity-2508/