General Electric Co. and BP plc are hooking up to invest in projects and develop technologies that reduce emissions of greenhouse gases. The idea is to combine fossil fuel power generation with technology that captures and stores carbon dioxide that would otherwise be emitted into the atmosphere. Ultimately, GE and BP hope to collaborate on up to 15 projects over the next decade and to expand the technology development relationship to include joint investments in emission reduction projects.

BP and GE haven't said how much they plan to invest, but the alliance between the two industry giants is significant in the alternative energy sector, which is ripe with alliances. Claire Poole explored a number of those relationships in Corporate Dealmaker last year, including BP's ventures with E.I. Dupont de Nemours and Co. to develop biobutanol and Clipper Windpower to develop wind projects.

In related news, GE announced this week that it plans to double its venture investments in the cleantech sector from $25 million to $50 million in 2008. — Suzanne Stevens

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