NEW YORK, May 11 (Reuters) - GE Energy, a subsidiary of conglomerate General Electric Co. (GE.N:  agreed on Tuesday to acquire ChevronTexaco Corp.'s (CVX.N: gasification technology business for an undisclosed price, broadening the company's product line.

The companies said in a joint statement the agreement will provide GE Energy with additional capabilities to provide coal power generation technology that produces fewer air pollutants. ChevronTexaco's gasification business develops technology for the chemical, electric power and hydrogen producing industries.

Gasification technology works by converting coal or lower-value oils into synthesis gas, or "syngas." The technology works by combining the hydrocarbons with oxygen under high pressure and heat.

Syngas can replace natural gas as a power plant fuel or building block for chemicals.

GE Energy supplies turbines for more than 60 percent of the world's integrated gasification combined-cycle (IGCC) plants, it said. The two companies have worked together a number of IGCC projects, including plants in California and Florida.

GE Energy will continue to be headquartered in Texas, where a majority of ChevronTexaco's gasification employees are located, following the completion of the deal.

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