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.