NLT143 RESEARCH. DIGITIZE THE PHYSICAL WORLD

The Turbine.

An interactive novel about the machine that built the modern world, and the bottleneck inside the AI buildout.

80%
global electricity
5 to 7 yr
OEM wait time
$200B+
annual market
David T Phung003 · May 2026
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Chapter 01

The question.

There is a question that nobody at General Electric, Siemens Energy, or Mitsubishi Heavy Industries asks out loud. Not because they don’t think about it. Because the answer is uncomfortable. What would it take to be able to design a turbine once, and have it work?

A turbine is, by quiet consensus, the most strategically important industrial device on earth. It converts about 80 percent of the world’s electricity. It propels the airliners and the warships. It backstops the grids that data centers and hospitals and cities rely on every minute of every day. And it is built, today, by a closed cartel of three companies that have been refining the same physics for a century.

Inside those three companies sits something close to twenty billion dollars of accumulated R&D hours. Most of it spent on iteration. Test rigs, blade redesigns, casting reworks, recalibration of cooling channels by tenths of a millimeter. The output is extraordinary. The process is not.

Dylan Morris, who writes a weekly Substack from El Segundo called Turbine Tuesdays, put the question this way: “The question these companies fail to ask is what would it take to be able to design once.”

This novel is the unpacking of that sentence. Why the question matters. Why nobody has answered it. And why a team in a low-slung industrial building two miles from the LAX runway is the most interesting attempt anyone has made in forty years.

The question these companies fail to ask: what would it take to be able to design once?
Dylan Morris, Turbine Tuesdays II
Chapter 02

First principles.

Before we can talk about the bottleneck, we need to talk about the machine. And before we can talk about the machine, we need to talk about energy itself, because the machine is, fundamentally, a conversion device.

Every turbine on earth runs the same ladder. Thermal energy at the top. Electrical energy at the bottom. The rungs are fixed by physics. The engineering is the climb.

At the top of the ladder is heat. You produce it by burning something, splitting something, concentrating sunlight, or routing geothermal flow. The thermal source defines the upper bound of your efficiency through the Carnot inequality. There is no negotiating with Carnot.

Then the fluid expands. The expansion does work on a set of carefully shaped blades. The blades spin a shaft. The shaft drives a generator. Each step has a physical bound. Each step also has a margin of engineering loss that good design can compress.

Stage 01
Thermal
Carnot limit

1 minus T-cold over T-hot. The hard ceiling.

Stage 02
Kinetic
Aero losses

Profile, secondary, tip leakage. 88 to 94 percent stage efficiency.

Stage 03
Mechanical
Friction, windage

Bearing losses, disc friction. About 1 to 2 percent off.

Stage 04
Electrical
Induction losses

Copper, iron, stray. 98 to 99 percent in modern generators.

The Carnot bound says the best you can ever do is one minus T-cold over T-hot. Every honest turbine engineer carries that number in their head.
Chapter 03

Anatomy of the machine.

On the floor of GE Vernova’s Greenville, South Carolina factory, a single H-class gas turbine takes up the length of a basketball court. It weighs about 880,000 pounds. It contains approximately 35,000 components, several thousand of which are individually serialized parts that must be tracked from supplier to install over a lead time that now reliably exceeds five years.

Air enters through the inlet at the cool end. It is compressed across seventeen stages, going from atmospheric to roughly 22 bar, heating along the way through pure work input. It enters the combustor, where natural gas is sprayed in and burned at a turbine inlet temperature now reaching 1600 degrees Celsius in the newest H and J class machines.

The combustion products expand through four turbine stages, each made of single-crystal nickel superalloy blades coated with a thermal barrier and pierced with film-cooling holes that bleed compressor air through the blade’s leading edge. The shaft spins at 3,600 RPM. It drives a generator. The exhaust, still hot, can be routed into a heat-recovery steam generator to drive a second cycle.

Click any zone below to see what lives inside.

AIR INLETCOMPRESSORCOMBUSTORTURBINEEXHAUSTGENERATORFUEL
Click a zone. Cool blue ← air flow → hot orange.
Turbine (hot section)
Cost share
25%
Lead time
36 mo

Four stages of single-crystal nickel-superalloy blades. Each blade is a serialized, traceable part. Thermal barrier coating plus film cooling. The bottleneck inside the bottleneck.

Chapter 04

The two cycles.

There are only two thermodynamic cycles that matter at the gigawatt scale. Brayton and Rankine. Everything else is a footnote.

Brayton is the cycle of the gas turbine. Air in, fuel burned, hot gas expanded, exhaust out. It runs open. There is no phase change. Modern industrial Brayton machines push turbine inlet temperatures to 1600 Celsius, achieving 42 percent thermal efficiency simple-cycle.

Rankine is the cycle of steam. Water is pumped, heated until it boils, expanded through a steam turbine, condensed back to liquid. The phase change is what gives Rankine its compactness and its limits. Modern supercritical units run at 600 Celsius and 250 bar, hitting 47 percent on coal, 33 percent on nuclear with its lower temperature constraint.

The trick that wins is to run both. Burn the gas in a Brayton cycle. Catch the still-hot exhaust in a heat recovery steam generator. Use that steam to drive a bottoming Rankine cycle. The combined arrangement reaches 63 to 64 percent. It is the most efficient practical heat engine ever built.

Adjust the slider below to see how cycle, temperature, and efficiency move together.

T (K)s (entropy)1234
Inlet temperature
1500 °C
Thermal efficiency
60.5%
Materials regime
DS Ni superalloy + TBC
Chapter 05

The bill of materials.

An H-class gas turbine sells for about $240 million bare. Add the balance of plant, the heat recovery steam generator, the steam turbine, the cooling system, the electrical interconnect, and the bill walks to between $440 and $640 million per train. Multiply by two or three for a typical combined-cycle station.

But the cost is not evenly distributed. A quarter of the cost lives inside the hot section, where blades are cast as single crystals from nickel superalloy ingots and finished with thermal barrier coatings to tolerances that demand atomic-scale process control. The hot section also has the longest lead time. Thirty-six months, on a good day.

The chart below shows where the money goes and how long each piece takes to arrive.

BOM by cost share · annotated lead time
$240M bare
Hot section blades
Single-crystal Ni, TBC
25%
36 mo
Compressor
17 stages, Ti/steel
18%
24 mo
Generator
Synchronous, H2-cooled
15%
30 mo
Combustor
Lean-premix, low NOx
12%
18 mo
Fuel & controls
Gas/liquid dual
8%
12 mo
Casings & rotor
Forged steel
8%
24 mo
Exhaust diffuser
Stainless modular
6%
12 mo
Inlet & aux
Filtration, silencer
8%
6 mo
There is something like twenty billion dollars of R&D hours sitting on the balance sheets of the world leading turbine developers. Millions of engineer-hours, most of which wasted through these iteration loops.
Dylan Morris, Turbine Tuesdays II
Chapter 06

The value chain.

The turbine value chain has five tiers. Raw materials at the bottom. Components above. The OEM frame builders in the middle. The engineering, procurement, and construction firms that assemble plants. And, at the top, the operating and aftermarket services business that keeps the turbines running for thirty years.

Dollar share moves down the stack. Margin share moves up. The largest dollar pool is plant construction, the lowest-margin step. The smallest dollar pool is aftermarket service, the highest-margin step. The OEMs sit in the middle and keep an outsize fraction of total industry profit because they control both the frame and the aftermarket flow.

Anyone trying to enter this industry has to choose where to play.

Tier 01
Raw materials
Nickel, cobalt, titanium, rare earths
Commodities. Concentration risk in Chinese refining of cobalt and rare earths.
Op margin
8 to 15%
Tier 02
Components
PCC, Doncasters, IHI, Howmet
Castings, forgings, coatings. A constrained supplier base that the OEMs have largely sole-sourced.
Op margin
15 to 22%
Tier 03
OEM frame builders
GE Vernova, Siemens Energy, Mitsubishi
The cartel. They own the IP, the test data, and the customer relationship.
Op margin
12 to 18%
Tier 04
EPC and plant
Bechtel, Black & Veatch, Hyundai E&C
The largest dollar pool. Civil works, BOP, commissioning. Margin is thin and risk is heavy.
Op margin
5 to 9%
Tier 05
Operations & aftermarket
OEMs (40% rev), independents (Sulzer, MTU)
The smallest dollar pool and the highest margin. OEMs lock in via long-term service agreements signed at frame purchase.
Op margin
25 to 35%
Chapter 07

The bottleneck.

In May 2025, every single one of the three companies that manufactures the world’s heavy-duty gas turbines simultaneously ran out of factory slots through 2030. GE Vernova’s backlog passed 80 gigawatts. Siemens Energy and Mitsubishi were not far behind. Pricing power flipped to the seller, and the customer line started to include not just utilities but hyperscalers paying cash for capacity that used to be allocated by relationship.

The Big Three together control roughly 77 percent of the heavy-duty market. The remaining quarter is split among Ansaldo Energia, Doosan, and a long tail of smaller players. Concentration at this level is what makes pricing decisive. There is no second bid.

Three things converged. The U.S. coal fleet retired faster than gas capacity was added, shrinking the reserve margin. Renewables grew, but the firming requirement grew with them. Then AI training and inference loads added roughly 60 percent of new data center demand inside a single eighteen-month window, with hyperscaler capex commitments now exceeding $400 billion annually.

Crusoe’s recent order, 29 LM2500XPRESS units for OpenAI’s Stargate site, is the new template. Modular aero-derivative gas turbines, ordered in industrial quantities, delivered directly to a hyperscaler site without the involvement of a regulated utility. This is not how the U.S. electricity market was designed to work.

Big Three share, heavy-duty gas turbine
~77%BIG THREE
  • GE Vernova · 32%
  • Siemens Energy · 27%
  • Mitsubishi · 18%
  • Ansaldo / others · 23%
OEM backlogs at year-end 2025 (GW)
GE Vernova
80
Siemens Energy
67
Mitsubishi
40
Ansaldo / others
18
5 to 7 yr
OEM order-to-delivery
$120+
CCGT LCOE, 10-yr ($/MWh)
60%
AI share of new demand
200 GW
Vestas cumulative installed
Chapter 08

Design once.

Now you design the turbine. Pick a customer. Pick a working fluid. Set the temperature, the pressure ratio, the mass flow. Then read the verdict.

The constraints are real. The math below is calibrated to the published efficiencies of the modern fleet, the lead times that have prevailed since 2022, and the customer requirements that map to the four real archetypes buying today.

Design once · step 1 of 6

Pick a customer.

Each archetype maps to a real buyer in the market today.

Chapter 09

The El Segundo bet.

Two miles south of the runway at LAX, in a low-slung industrial building that used to house a defense subcontractor, a small team is doing something that has not been attempted in the United States in forty years. They are trying to design and build heavy-duty turbines from a clean sheet.

The company is called Stone Power. The founder is Dylan Morris, who studied at SMU, worked in turbomachinery, and publishes Turbine Tuesdays, a weekly Substack that has become the closest thing the industry has to an open-source briefing. The pitch is three things at once. Simplified gas turbines that drop into hyperscaler sites today. Closed-cycle turbines that will pair with advanced nuclear reactors tomorrow. And an AI-accelerated engineering loop, paired with American-scale manufacturing, that compresses the iteration cycle the incumbents are trapped inside.

The location is not incidental. El Segundo is now the densest concentration of American hard-tech operators in the country. SpaceX is across the runway. Anduril is two miles east. Hadrian, Castelion, K2 Space, and Apex are within a 15-minute drive. The talent that built the SpaceX cadence is now spreading laterally into turbines, hypersonics, manufacturing, satellites, and defense electronics.

Stone Power is not alone. NET Power is commercializing a supercritical CO2 oxy-combustion cycle with built-in carbon capture. Arbor Energy is building a biomass-fueled turbine that runs net-negative. The advanced nuclear vendors, X-energy and Kairos and Aalo and a half-dozen others, need turbine partners. The category around it is what David Sacks and Marc Andreessen have called American Dynamism. It is the bet that the next decade of industrial value will be created by founders who can do physical things at velocity.

Strategic positioning · efficiency × manufacturing velocity
EFFICIENCY →MANUFACTURING VELOCITY →NICHE / SLOWTHE OPPORTUNITYLEGACY SCALEINCUMBENT FRONTIERGE VernovaSiemens EnergyMitsubishiSolar TurbinesCapstoneNET PowerSCO2 OXY-COMBUSTIONArbor EnergyNET-NEGATIVE BIOMASSStone PowerTHE BET
Chapter 10

The reader.

Imagine you are an architect-turned-operator, sitting in a Los Angeles coffee shop in May 2026. You have read this far. The question now is what you do.

A short, opinionated reading list. The eight items below are the ones that, taken together, will let you hold a serious conversation about turbines, the AI buildout, and American industrial capacity.

BOOK
The Prize
Daniel Yergin
The canonical history of the oil and gas industry. Required context for anything energy.
BOOK
Where Is My Flying Car?
J. Storrs Hall
On why technological stagnation is a choice, not a law of nature.
PAPER
Gas Turbines: A Handbook of Air, Land and Sea Applications
Claire Soares
The reference text. Skim chapters 1, 3, and 7 to get the architecture.
SUBSTACK
Turbine Tuesdays
Dylan Morris
Weekly. The most informed open-source briefing on the industry today.
REPORT
BloombergNEF New Energy Outlook
BNEF
The annual sweep on capex, fuel mix, and capacity additions.
ESSAY
The Techno-Optimist Manifesto
Marc Andreessen
Polarizing on purpose. The cultural source code for American Dynamism.
BOOK
The Power Broker
Robert Caro
How infrastructure actually gets built. Or doesn’t. Read for the politics.
REPORT
IEA World Energy Outlook
International Energy Agency
The other annual sweep. Read alongside BNEF, never instead of.
Chapter 11

What happens next.

The AI buildout is now publicly committed. The hyperscaler capex curve has cleared $400 billion annually. The power requirement that follows is not a forecast, it is an arithmetic. Either the United States rebuilds the turbine industry and the surrounding civil capacity to install it, or it imports the answer from somewhere else.

Stone Power, Arbor Energy, NET Power, the advanced nuclear vendors, and the El Segundo manufacturing cluster are the visible bets. They are not the only ones. They are the ones whose architecture is legible today.

The next 36 months will determine the cycle. Either the new entrants reach commercial demonstration and the cost curve breaks open, or the incumbents extend their pricing power for another decade. Both paths produce a working grid. Only one of them produces an American industrial base on the other side of it.

The right time to learn turbines was twenty years ago. The second best time is now.

Chapter 12

Colophon.

Built with curiosity and Claude Code in May 2026 by David T Phung. The architect’s instinct, the operator’s discipline.

Faith framing borrowed from Bezalel of Exodus 31. The Spirit-filled craftsman, the working hands.

Reading list
BOOK
The Prize
Daniel Yergin
The canonical history of the oil and gas industry. Required context for anything energy.
BOOK
Where Is My Flying Car?
J. Storrs Hall
On why technological stagnation is a choice, not a law of nature.
PAPER
Gas Turbines: A Handbook of Air, Land and Sea Applications
Claire Soares
The reference text. Skim chapters 1, 3, and 7 to get the architecture.
SUBSTACK
Turbine Tuesdays
Dylan Morris
Weekly. The most informed open-source briefing on the industry today.
REPORT
BloombergNEF New Energy Outlook
BNEF
The annual sweep on capex, fuel mix, and capacity additions.
ESSAY
The Techno-Optimist Manifesto
Marc Andreessen
Polarizing on purpose. The cultural source code for American Dynamism.
BOOK
The Power Broker
Robert Caro
How infrastructure actually gets built. Or doesn’t. Read for the politics.
REPORT
IEA World Energy Outlook
International Energy Agency
The other annual sweep. Read alongside BNEF, never instead of.
Credits
NLT143 RESEARCH. DIGITIZE THE PHYSICAL WORLD. Issue 003.
The Turbine.