Daily News

Insatiable hunger for energy will see Southeast Asia’s electricity demand almost triply by 2024 – a greater rise than Japan’s current power output. “To secure its energy needs, the region requires $2.5 trillion of investment in energy-supply infrastructure,” IEA analysts forecast, suggesting power producers will favour coal due to its abundance and relative affordability.

Natural gas will continue to dominate the production of ammonia and hydrogen due to the prohibitive cost of alternatives methods. However, falling US gas prices undermine the use of hydrogen, with BCC Research analyst Gerry Runte pointing at “unfavourable economics for uses of hydrogen other than for refining and as a chemical intermediate.”

Widespread adoption of renewables is effectively lowering the capacity factor for gas- and coal-fired power plants. In Germany and the UK wind energy is now the cheapest form to produce electricity, according to Bloomberg New Energy Finance (BNEF).

Karadeniz Powership Osman Khan (KPS12) power plant – at 486 MW the world’s largest floating power plant – will be equipped with Alstom transformers. The delivery is planned to be completed in early 2016.

Philippine utility First Gen is forging ahead with adding two new gas-fired power plants to the grid. The 97 MW Avion open-cycle plant is due to come online before the end of this year, while the 414 MW San Gabriel combined-cycle plant is scheduled to start up in mid-2016.

One of Europe’s largest biomass power plants will be operated by Veolia on behalf of Belgian Eco Energy (Bee) for 15 years with revenues of around 150 million euros.

Coal is currently about three times cheaper than gas. A new CEDIGAZ report anticipates that unprofitability of CCGTs and the retirement of old coal-fired plants due to stringent air regulation may lead to the closure of one third of the current EU power plant fleet – a serious threat to security of supply.

Targeting Arabia’s growing energy sectors, Chromalloy and Arabian Qudra have joined forces to supply gas engines and carry out component repair, field services, system upgrades and service agreements, in addition to its Tiger Monitoring & Diagnostic System.

Wholesale prices in the UK gas and electricity market have fallen ahead of the upcoming winter, despite a previous alarm over tighter supply margins. Increased gas in storage and a greater share of renewable electricity generation contribute to the bearish sentiment.

Should the conversion of the Kemper plant not be completed by April 19, 2016, Southern Co. will have to repay $234 million in phase II investment tax credits to the U.S. Internal Revenue Service (IRS). The ageing coal plant is to be transformed into an integrated gasification combined cycle (IGCC) – but costs are already billions over budget.

Plans to build a power plant that will utilise the associated gas produced from BP-operated offshore gas fields in Tangguh are being pursued by the provincial administration in West Papua.

Expanding into a new segment, Wärtsilä has started to offer a comprehensive package of seals, bearings and associated solutions to hydropower and industrial plants worldwide.

News in Brief

Entergy sells Rhode Island CCGT for $490m

Oct 8 – Entergy Corp. today announced that its wholesale generation division, Entergy Wholesale Commodities, has agreed to sell its 583 MW Rhode Island State Energy Center (RISEC) to Carlyle Power Partners. The facility is a gas-fired, combined-cycle plant that entered commercial service in 2002. The base sales price is $490 million, subject to closing adjustments.

Philippines: LNG-to-power project hits delay

Oct 8 – Hong Kong-based Energy World said in its annual report that it expects to bring the first 200 MW of its power project in Pagbilao town in Quezon Province into commercial operation by March and a second 200 MW unit by June next year. Initially, the Australia-listed developer said it would bring the first unit into operation in Q2’2015 and he second 200 MW unit two to three months afterwards.


Cryogenic system freezes up to 99% of emissions

Oct 7 – Freezing the CO2 with -130 degree Celsius temperatures, then separating the dry ice from the other gas and heating everything back up, can reduce carbon emissions by up to 99%. BYU professor Larry Baxter is currently developing such a system that may help realize the EPA’s ambitious plan to curb emissions in the US by 32% by 2030.


Capstone wins C600 order in Colombia

Oct 7 – Supernova Energy Services, Capstone's Colombian distributor, has received an order for a C600 microturbine to power a gas compression station for a repeat oil and gas customer. The 600kW microturbine will operate in dual mode, which allows the customer to operate independently of or with the grid in a load sharing capacity. Commissioning is scheduled for January 2016.


Gemma Power receives full notice to proceed on CCGT

Oct 6 - NTE Ohio, an affiliate of NTE Energy, has given Gemma Power Systems (GPS) the full notice to proceed with EPC activities for the Middletown Energy Center located in Butler County, Ohio. The 475 MW combined-cycle plant is estimated to be completed by GPS in the spring of 2018.


Record short-selling on US gas contracts

Oct 6 – Traders have increased their net-short positions in four US gas contracts by 26% in the week ended Sept. 29, the highest level in U.S. Commodity Futures Trading Commission data going back to 2010. Gas futures plunged to a 3-year low amid expanding production from Marcellus and Utica Shale, record inventory levels as well as lower gas demand for power generator due to higher than average temperatures.


Construction on Middletown CCGT to start ‘immediately’

Oct 5 – After closing a financing deal late on Friday, NTE Energy announced construction works on its $645 million gas power plant project in Middletown will “commence immediately”. Operational start of the Middletown Energy Center is slated for 2018, with NTE suggesting the CCGT “could produce more than 500 megawatts of electric power year-round.”


SP Services cuts power tariffs on cheap gas

Oct 2 - Electricity tariffs in Singapore will be reduced by an average of 9.3 per cent, or 2.06 cents per kWh, in the fourth quarter of this year. SP Services explained the cut from Oct 1 to Dec 31 is due to the lower cost of natural gas for electricity generation which fell by 18.4% compared to Q3 2015.

South Africa’s CDC plans 2nd gas power plant

Oct 1 – State-owned Coega Development Corporation (CDC) said its tender for an environmental impact assessment for a gas-fired power project has received “overwhelming number of responses.” Though CDC did not reveal the planned capacity of the project, it said the plant would be located less than 4km from the 400kV Dedisa substation. If realised, it would be CDC’s second gas-fired asset in the Coega IDZ after the 342MW Dedisa peaking plant.

Caterpillar to install 38.8 MW in Minnesota

Sept 30 – Southern Minnesota Municipal Power Agency (SMMPA), a collective agency of 18 municipal utilities, has selected Caterpillar to install four Cat G20CM34 generator sets for a new power plant project in Owatonna, Minnesota. Construction of the 38.8 MW plant is scheduled to start in early 2016.

Korea: GS EPS starts up 105 MW biomass plant

Sept 29 – Oman Oil Company’s venture in South Korea’s power sector, GS EPS Co, has inaugurated the largest biomass power plant in Asia with a capacity of 105 MW. The plant was built at a cost of $273 million and is operated by GS EPS, a 30:70 joint venture between OOC and GS Holdings.

EU label to improve micro-CHP awareness

Sept 28 – New regulations on energy labelling and eco-design requirements for space heaters, which came into force on 26 September, are expected to result in annual fuel savings of around 45 Mtoe by 2020, corresponding to 110 Mt of CO2 emissions. The industry group COGEN Europe supports greater use of micro-CHP as it “gives households and small businesses the opportunity to produce their own electricity and therefore actively participate in the energy market.”

Gas engine market to grow 7.85% by 2019

Sept 29 – The global gas engine market is forecast to grow at a CAGR of 7.85% over the period 2014-2019, according to a Sandler Research report. Vendors made significant R&D efforts over the past decade to improve gas engine shaft efficiency in a bid to achieve fuel savings, while improved combustion processes and after-treatment of the exhaust reduced NOx and UHC emissions.

Wärtsilä wins 40 MW contract in Kazakhstan

Sept 28 – A 40 MW Smart Power Generation power plant, powered by four Wärtsilä 34SG gas engines, will provide electricity and steam for process industry near the city of Aktau. Finnish Wärtsilä won an order to supply the plant which is scheduled to be operational in late 2016.

Phillipines: FirstGen secures $200m term loan

Sept 25 – First Gen Corp. has closed a $200-million loan with BDO Unibank to finance the capital expenditures such as the 414 MW San Gabriel CCGT and the 97 MW Avion open-cycle plant. Both projects are located near the operation of the 1,000 MW Santa Rita CCGT in Batangas on Luzon in the Philippines

TIAC to boost power output at Pueblo Airport station

Sept 25 – Stellar Energy will supply a turbine inlet air chilling (TIAC) system for Black Hills Energy’s Pueblo Airport Generating Station in Pueblo, Colorado. The project includes design, manufacturing, supply, and commissioning support for a TIAC system for the plant's GE LM6000 turbine. The TIAC enhancement is meant to deliver a 20% increase in power output for the plant during summer.

ABB wins $30m substation order in Algeria

Sept 24 – ABB has won orders worth around $30 million for the construction of a new 400-kilovolt (kV) substation to power a new steel complex in Algeria’s north-eastern Jijel province. The new substation will connect the steel complex to the national electricity grid.