Duke Energy and GE Vernova’s Turbine Deal: A Strategic Play for the Energy Transition

The collaboration between Duke Energy (DUK) and GE Vernova, announced in April 2025, marks a critical step in modernizing U.S. energy infrastructure while addressing the dual challenges of rising demand and decarbonization. The partnership, which includes the procurement of up to 11 additional GE Vernova 7HA gas turbines, builds on Duke’s prior acquisition of eight such turbines and underscores a strategic shift toward reliable, cost-effective, and sustainable energy solutions.

The Deal in Detail

The turbines, manufactured at GE Vernova’s upgraded Greenville, South Carolina facility, will support Duke’s service territories in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, where energy demand is growing due to advanced manufacturing, data centers, and population increases. Key highlights include:
- Job Creation: The Greenville facility’s expansion, part of a $600 million U.S. manufacturing investment, will create over 1,500 jobs and bolster domestic supply chains.
- Cost Efficiency: By leveraging Duke’s existing infrastructure (e.g., transmission systems), the turbines can be deployed at lower upfront costs and faster timelines than greenfield projects.
- Decarbonization: The 7HA turbines are designed to operate on 100% hydrogen or blends, aligning with Duke’s goal to achieve net-zero carbon emissions by 2050 and GE Vernova’s focus on low-carbon energy solutions.

Financial Implications

The partnership is a win-win for both companies. For Duke Energy, the turbines are a cornerstone of its $83 billion five-year capital plan (2025–2029), which aims to drive 7.7% annual earnings growth. The integration of hydrogen-compatible turbines supports its diversified energy portfolio, combining renewables, nuclear, and gas-fired generation.

GE Vernova, meanwhile, benefits from strong demand for gas turbine technology. In Q1 2025, the company reported $10.2 billion in orders (+8% organically), with gas equipment backlog surging to 29 gigawatts. Its net income margin expanded by 480 basis points to 3.3%, reflecting operational improvements and pricing power.

The DeBary Project: A Hydrogen Pioneer

A standout element of the partnership is the DeBary green hydrogen project in Florida. By 2024, Duke plans to use solar energy to produce hydrogen via electrolyzers, which will be stored and combusted in a 100%-hydrogen-capable GE 7E gas turbine. This hybrid system:
- Enhances Reliability: Mitigates renewable intermittency by providing dispatchable power during peak demand.
- Reduces Emissions: Replaces fossil fuels with green hydrogen, advancing Duke’s methane reduction targets (80% cut by .

GE Vernova’s role in retrofitting the turbine’s fuel systems and piping positions it as a leader in hydrogen-enabled gas power. The project’s success could unlock new markets, as global demand for hydrogen-ready infrastructure grows.

Analyst Outlook and Risks

Analysts are cautiously optimistic. Duke Energy’s stock has an average target price of $123.95, reflecting confidence in its capital plan. However, GuruFocus notes potential downside risks due to rising interest expenses and equity funding needs. GE Vernova’s reaffirmed 2025 guidance ($36–$37 billion in revenue and $2.0–$2.5 billion in free cash flow) signals financial resilience, though tariffs and supply chain challenges remain risks.

Conclusion

The Duke Energy-GE Vernova collaboration exemplifies a strategic pivot toward affordable, reliable, and decarbonized energy systems. For Duke, the deal supports its $83 billion capital plan, balancing growth, cost management, and emissions reduction. For GE Vernova, it reinforces its position as a technology leader in gas turbines and hydrogen integration, leveraging a $123 billion backlog and margin improvements.

The partnership’s broader significance lies in its alignment with U.S. energy security goals, creating jobs and reducing reliance on foreign energy. With Duke’s 2025 EPS forecasted at $6.17–$6.42 and GE’s backlog growing by $4.4 billion sequentially, investors can expect long-term value creation. As the energy transition accelerates, this deal positions both companies as pioneers—and makes them compelling bets for portfolios focused on sustainability and infrastructure growth.