Engie, Siemens, Centrax, Arttic, German Aerospace Center (DLR) have started field trials on the world's first industrial-scale power-to-X-to-power demonstrator as part of the HYFLEXPOWER project. The aim is to produce, store and use renewable hydrogen to fire a Siemens SGT-400 industrial gas turbine, installed at cogeneration plant operated by paper factory in France.
Climate policy linked to the European Green Deal and the digital transformation will be “at the centre” of the German EU Council presidency in the second half of 2020, Chancellor Merkel told parliament. “Recovery after the crisis must be a ‘green recovery,’” a strategy paper by the foreign office reads.
PT Pertamina, better known as Persero, has contracted Siemens to supply a range of compression and power generation equipment for the Balikpapan refinery, situated on Indonesian island of Borneo. The refinery will have a residual fluid catalytic cracker with a capacity of 90,000 barrels per stream per day (bpsd).
Golar’s 1.5 GW Sergipe power project in Brazil has received Commercial Operation Date (COD) acceptance which triggers the start of earnings under a 25-year PPA and the associated charter for FSRU Golar Nanook. Combined pre-inflation revenue could amount to over $1.8 billion.
The German energy industry is cutting back on investment planned for this year and 2021. Though policy makers said the industry would become a main pillar of a sustainable recovery, the industry association BDEW forecasts 2020 Capex will be way below the €15.5 billion spent in 2018.
In Italy, GE has completed the installation of a new rotor and a compressor on a 9F.03 gas turbine at Tirreno Power’s 1,200 MW Torrevaldaliga Sud Power Plant near Rome. The modernization project started in late February and works were finished on time and safe amidst the pandemic.
The UK gas system is out of balance as resilient domestic production, Norwegian pipeline gas and LNG are overwhelming the market. With demand staying “weak” and storages filling fast, Wood Mackenzie suggests capping LNG imports at 2 billion cm/month through the summer.
Siemens Gas and Power will supply three cryogenic boil-off gas compressor trains for the Golden Pass LNG export terminal at Sabine Pass, Texas. The contract was awarded by McDermott, Chiyoda and Zachry Group – the EPC contractors who are building the liquefaction plant on behalf of Qatar Petroleum and ExxonMobil.
Baltic Pipe, connecting the Polish gas grid with Norway, has secured construction permits through Sweden’s territorial waters - the final permits required before works can begin. The pipeline will have nearly 1 billion cubic feet per day (Bcf/d) of capacity and is due on stream by October 2022.
Investment in energy infrastructure is being slashed by one-fifth, or almost $400 billion, in 2020 due to lower energy demand and prices caused by the Covid-19 pandemic, the International Energy Agency (IEA) finds. Tracking of company announcements and investment-related policies before the crisis had suggested energy spent could grow by 2% worldwide.
The spin-off of Siemens Energy will go ahead in September, whereby shareholders will automatically receive one share of Siemens Energy for every two shares of Siemens AG. In the following 12 to 18 months, Siemens AG intends to further reduce its stake in Siemens Energy by a “significant” amount.
Rolls-Royce and Daimler Truck plan to cooperate on stationary fuel-cell generators for data centers, hospitals and other safety-critical infrastructure. These fuel-cell gensets will offer emission-free alternatives to diesel generators, currently used as emergency units to cover peak loads.
News in Brief
Exxon, INNIO about to launch gas engine oil
June 1 – ExxonMobil and INNIO have announced the imminent launch of their first co-engineered and co-branded natural gas engine oil. The U.S. oil major and the Austrian engine maker have just extended their global lubricant collaboration agreement for INNIO’s Jenbacher Type 2, 3, 4, 6 and 9 natural gas engines.
BelGAS launches new pressure regulator
May 29 – BelGAS has introduced its new P1098 High-Capacity Pressure Reducing Regulator, a large-volume regulator for natural gas, propane and other fuels. The pilot-operated device has a large-area actuator diaphragm, allowing for fast and accurate response to modulating gas flow conditions. It is adaptable for low to extra-high pressure—up to 400 psi main valve inlet.
GE to sell lightning business
May 28 – GE has signed a definitive agreement to sell its lighting business to Savant Systems, a provider of smart homes. CEO H. Lawrence Culp called the divestment “an important step in the transformation of GE into a more focused industrial company.” The transaction is expected to close in mid-2020.
China’s fuel demand recovers
May 27 – The Chinese government has lifted restrictions on private travel since April which pushed up demand for transport fuels. Gasoline demand has recovered particularly fast and is expected to return to last year’s levels by June 2020. Wood Mackenzie estimates gasoline consumption to reach 3.4 million barrels per day (b/d) in the second quarter, down just a 0.8% year on year. Diesel or gasoil demand is expected to reach 3.4 million b/d in Q2 2020, a 3% decline year-on-year. Overall, China’s oil demand is seen rise a “modest” 13.6 million bpd, or 2.3%, in the second half of 2020.
Wärtsilä to retrofit CHP in Spain
May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.
New York body rejects William’s plans for gas pipeline expansion
May 21 – New York’s and New Jersey’s state bodies for environmental conservation have rejected Williams’ plans for the Northeast Supply Enhancement project, designed to transport 400 million cubic feet per day of gas from Pennsylvania to New York. The state bodies had already denied wetland permits in 2019, but Williams pipeline subsidiary Transco filed another application with the U.S. Federal Energy Regulatory Commission (FERC), arguing firm services under the project were agreed with UK’s National Grid for customers in New York City districts of Brooklyn, Queens, Staten Island and Long Island.
UK inflation at 4-year low amid falling energy costs
May 20 – The rate of inflation in the UK has fallen to a four-year low as the pandemic pushed down global oil and fuel prices which translate into lower wholesale power prices. The consumer price index fell to an annual rate of 0.8% in April, down from 1.5% in March, according to the Office for National Statistics.
Deficit grows in German green energy fund
May 19 – German regional grid operator TransnetBW has warned of a growing shortfall in the country’s fund for green energy sources, financed under the so-called renewable energy (EEG) levy. TransnetBW, the TSO in southwest Germany, said “due to the EEG cost allocations defined for 2020, we anticipate there will be a negative year end bank account balance in the high three-digit million euro range for 2020.”
Spanish gas companies ‘resilient’
May 18 – Spain’s regulated gas companies “should prove to be resilient” to external shocks arising from coronavirus containment measures, Standard & Poor’s analysis finds, calculating with an average drop in EBITBA at less than 3% in 2020. A new remuneration framework for 2021-2026, recently enacted by the Spanish government, provides enhanced visibility rated grid operators amid the pandemic.
German electricity prices second highest in EU
May 15 – Taxes and the renewable energy surcharge have pushed up Germany’s household electricity prices to the second highest level in Europe, topped only by prices in Denmark. While Danish households paid 29.2 Euros per 100 kWh on average in the second half of 2019, prices in Germany averaged 28.7 Euros, according to the EU statistics office Eurostat.
Calpine’s Q1 earnings fall
May 14 – Calpine, America’s largest generator of electricity from gas and geothermal, has reported a net income of $128 million for the first quarter of 2020, down from $175 million in the prior year period. Lower commodity margins and unfavourable change in income taxes were partially offset by earnings from hedge positions for the three month ending March 31.
Siemens to supply hybrid plant in the Philippines
May 13 – Berkley Energy has contracted Siemens Energy to build a hybrid power project on the island of Mindoro in the Philippines. The project links 16 MW wind power with battery storage, stabilizing energy supply in a remote location with a weak link to the grid and reducing its dependence on diesel.
U.S. energy emissions fall
May 12 – Energy-related carbon emissions in the United States have fallen more than energy consumption, down 2.8% over the course of last year to 5,130 million metric tons (MMmt). Power sector emissions were down 145 MMmt, due to a switch from coal to gas and renewables. In April 2020, emissions experienced another unprecedented fall in due to Covid-19 lockdowns.
MAN expands Omincare concept
March 11 – MAN Energy Solutions’ service brand has extended its ‘PrimeServ Omnicare’ concept from turbomachinery to the marine and power segments. The one-stop service solution is now also applicable for maintenance of third-party machinery, including engines, turbochargers and related auxiliaries.
MIVOLT launches cooling fluid
May 7 – MIVOLT, part of the British company M&I Materials, has launched two specialist fluids to improve cooling efficiency at data centres. The electricity demand of data centres is forecast to rise to 20% of global supply to accommodate lifestyle changes like 5G internet network, autonomous vehicles and bitcoin mining.
Germany adds 1,300 km to power grid
May 6 – Germany has made progress in expanding its strained power grid. According to the Federal Network Agency (BNetzA), over 1,300 kilometres of new power transmission lines have been built and another 830km approved. A further 3,600km are planned to be built by 2030 to alleviate grid bottlenecks and allow transporting rising volumes of offshore wind southbound.
Oman nationalizes first IPP
May 5 – Manah Power, the first privately-run Independent Power Project (IPP) in Oman, has been transferred to state ownership, following the expiry of a Power Purchase Agreement (PPA) between United Power Company and state-owned OPWP. Manah IPP was developed under Build-Own-Operate-Transfer (BOOT) model, which stipulates an eventual nationalization of the assets – a feature absent in subsequent IPPs.
