Energy Storage

The 22MW/34.8MWh Cremzow battery energy storage in northeastern Germany has started full commercial operation, underpinned by Wärtsilä's GEMS control platform. Built by Enel, Enertrag and Leclanché at a cost of about 17 million Euros, the storage provides frequency regulation services for the regional power grid.

Australian energy company Santos is about to launch the world's first battery project at its Darwin LNG export plant. It will integrate batteries at the liquefaction facility's integrated gas power unit to ensure they run more effectively and with less emissions. The project is about to enter FEED phase and is due completed in mid-2020.

Falling technology prices make solar-plus-energy storage preferable over gas peaking power plants on a levelised cost of electricity (LCOE) basis. According to Wood Mackenzie, unsubsidized utility-scale LCOE for a 4-hour lithium-ion solar-plus-storage will outcompete gas peakers in all National Electricity Market (NEM) states of Australia in 2023.

Vietnam Electricity (EVN) has awarded GE’s energy consulting arm a contract to carry out a battery storage feasibility study, funded by the U.S. Trade and Development Agency (USTDA). State-owned EVN seeks to deploy energy storage throughout Vietnam to help meet an estimated 8% annual electricity load growth through 2035.

MAN Energy Solutions has received the Storage Highlight award for its new energy management solution, offering scalable and CO2-neutral energy storage and sector coupling. The basic principle of MAN ETES is the reversible conversion of electrical energy into thermal energy via storage in form of hot water and ice.

Norway’s state energy group Statkraft has connected gas engine-driven power units, energy storage and renewables in Britain. The virtual power plant (VPP) has a capacity of nearly one Gigawatt (GW) and can react to fluctuating demand within seconds.

Variable renewables will make up more than half of global capacity additions to 2040, so affordable energy storage is vital to provide flexible supply and grid inertia. Analysts say the cost for four-hour batteries will fall to $220/kWh by 2040, spurring a storage rollout of nearly 220 GW.

ContourGlobal Bonaire, the Caribbean arm of London-based ContourGlobal, has selected Wärtsilä to build a 6-MW energy storage on the island to accommodate greater supply of intermittent wind and solar energy. Works on the EPC project are underway and are due to be completed in April 2019.

The sunny American Southwest is where gas peaking plants are losing out to solar-plus-storage projects, which pitch for tenders at less than $30/MWh. The cost for installing battery storage, based on a 20 MWh system with 4 hours of storage, plunged 40% over the past year to $357/kWh and Bloomberg New Energy Finance (BNEF) anticipates another 52% reduction by 2030.

Falling technology cost and supportive policies are seen pushing up the American grow from currently $400 million to top $4 billion by 2024. According to Global Market Insights, power storage could become a “market disruptor”, having nearly doubled in 2018 by adding yet another 1,000 MWh of capacity.

By 2024, China’s market for flow vanadium energy storage is likely to exceed $3 billion. The new technology is based on domestic resource and offers virtually unlimited storage capacity, long duration, and rapid response time. A 200MW/800MWh vanadium flow battery is under development in Dalian, with the batteries made in a nearby factory of Rongke Power.

Sempra Energy has sealed a deal to divest its non-utility US natural gas storage facilities for $322 million to an affiliate of ArcLight Capital Partners. Once the sale is closed in Q1-2019, ArcLight will own 100% of Mississippi Hub and Bay Gas storage facilities.

Nov 28 – Tokyo-based Toshiba will reinforce its green energy footprint by spending 100 billion yen ($175m) on a new biomass power plant near the thermal Mikawa power station in Omuta, Fukuoka prefecture. Going forward, Toshiba aims to aggregate all its renewable energy sources and storage batteries, creating a Virtual Power Plant (VPP).

Energy storage will play a growing role in the British power mix as the Brexit process is at a critical stage and the country seeks to reduce reliance on importing electricity through from mainland Europe. “Interconnectors are direct competitors in the flexibility marketplace,“ Wood Mackenzie said, suggesting Brexit could be good news for the UK storage market.

Nov 21 – Rebuking warnings of gas supply shortages, the UK government said it will not give any regulatory support for new gas storage facilities. Insisting that “the benefits of more insurance are not worthwhile,” energy secretary Greg Clarke said, insisting the market was already providing sufficient gas security and optionality.

Page 9 of 18

News in Brief

CCUS market to reach nearly $3bn in 2025

Oct 25 – The global carbon capture, utilization, and storage (CCUS) market will grow from $1.30 billion in 2020 to $1.46 billion in 2021, according to ResearchAndMarket estimates. The rebound comes as companies return to normal operations and sales, after a pandemic-related slowdown. Analysts expect the market will keep growing at a rate of nearly 20% annually to reach $2.97 billion by 2025.

SDG&E accelerates drive towards Net Zero by 2045

Oct 20 – San Diego Gas & Electric Company (SDG&E) has set a new sustainability strategy, outlining new and accelerated goals to help meet its pledge to reach net zero greenhouse gas (GHG) emissions by 2045. SDG&E it now seeks to operate a 100% zero emissions vehicle fleet by 2035 – five years earlier than planned.

B&W develops biomass-to-hydrogen plant in Australia

Oct 19 – B&W's Renewable segment and Port Anthony Renewables Ltd have started to develop a biomass-to-hydrogen energy project in Victoria, Australia, based on B&W’s BrightLoop technology. When completed, the plant is expected to be part of the largest green hydrogen hub in south-eastern Australia.

LNG prices rise faster than oil

Oct 18 – Liquefied natural gas and pipeline supplies have experienced an even sharper increase in prices in 2021 than oil, driven by a combination of circumstances that included a strong recovery in demand in North Asia, southeast Asia and Europe, unseasonal weather and planned and unplanned capacity outages.

Wärtsilä shaft gensets to power two LNG carriers

Oct 14 – The Finish technology group Wärtsilä has been awarded a contract to supply four shaft generators to provide electricity take-off from the main engines of two LNG carriers. The ships are being built at the Hyundai Heavy Industries (HHI) shipyard in Korea on behalf of the Capital Gas Ship Management of Greece.

VoltH2 gets green light for large hydrogen plant

Oct 13 – Vision Hydrogen Corp has announced that its affiliate VoltHe has received building and environmental permits to realise its first large-scale hydrogen plant at the Dutch North Sea Port of Vlissingen. The 5 MW hydrogen plant is located near existing high voltage power and gas infrastructure as well as large wind power assets. Once operational, it will produce around 3,500 tons of green hydrogen per year and will be scalable to 100 MW or 14,000 tons.

Tesla overtakes German e-cars

Oct 12 – Sales of Tesla in Germany has overtaken that of leading German carmakers. In September, more electric Tesla Model 3s were registered in the country than leading domestic models, such as the BMW 3 Series, Audi A4 and Mercedes C-Class combined.

EnerMech spends £500k on crane training tech

Oct 11 – EnerMech has invested £500,000 in new crane simulator training systems at its Luanda (Angola), Doha (Qatar) and Great Yarmouth (UK) facilities. The British company recently formed a joint venture with 3t Energy Group to bring the KraneSIM-6000 equipment to both Qatar and Angola and offer in-country training across client organisations globally.  

Germany finances green hydrogen projects abroad

Oct 8 – The German government has agreed to support green hydrogen projects in other countries with up to €350 million by 2024, the economy ministry said when publishing a directive with relevant guidelines. Moreover, financial support is given to projects that produce and process green hydrogen for storage, transport and use in countries outside the EU through investment grants worth up to €15 million each.

UK e-car sales surge 186%

Oct 6 – Sales electric cars in the UK have surged 186% to a total of 108,000 in 2020 during the pandemic, up from just 38,000 in the previous year. Latest statistics show there were nearly 300,000 pure-electric cars on UK roads at the end of August 2021, and more than 600,000 plug-in models if including plug-in hybrids (PHEVs).

FogHorn deploys AI software at Chugoku Electric Power in Japan

Oct 4 – FogHorn, developer of Edge AI software, has deployed its Internet of Things (IoT) software at the Chugoku Electric Power hydroelectric power plant. The AI solutions will make the power gen process more efficient and enhances workplace safety. Chugoku Electric Power employs nearly 9,200 workers across 114 power units in the western part of Honshū, the largest island of Japan.

Rolls-Royce supplies MTU engines for ferry propulsion

Oct 1 – Rolls-Royce's new MT engines, automation system, and MTU Go! tool for remote service have future-proofed the high-speed catamaran Avemar Dos, run by the Spanish operator Balearia. Four MTU 20V1163 M84 units replaced the previous 1163 units, taking the vessel to a "new level of ecological soundness," the manufacturer says.

GES appoints former Puma Energy Chairman as NED

Sept 30 – Global Energy Storage (GES) has appointed the former Puma Energy Chairman, Graham Sharp, as an NED. Graham will support GES on its ‘new energies’ strategy for the energy transition, focusing on hydrogen fuels and hydrogen carriers space.

Aggreko reaches 2 GW of live power gen capacity

Sept 29 – Aggreko has today announced it has reached 2GW of live global gas power capacity and growth in flare gas to power and stranded gas projects. This new record follows a milestone of exceeding 1GW of delivered flare gas power projects in 2020.

Wärtislä renews O&M agreement with Lafarge Africa

Sept 28 – The Finish technology group Wärtsilä has renewed a long-term Operation & Maintenance (O&M) agreement with Lafarge Africa, a large producer of building materials in Nigeria. The agreement covers the 100 MW Lafarge Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes.

Rolls-Royce supplies MTU engines to Sanlorenzo

Sept 27 – Rolls-Royce business unit Power Systems will become one of the leading engine suppliers for Sanlorenzo, delivering MTU 10V, 12V and 16V 2000 yacht engines with a compact IMO 3 solution. A framework contract from 2022 through 2024 has been signed at the Monaco Yacht Show.

Shell exits Permian Basin

Sept 24 – Royal Dutch Shell has sold all its upstream interested in US Permian Basin to ConocoPhillips for $9.5 billion in cash. Shell’s assets in the Permian include around 225,000 net acres with a current production of around 175,000 barrels per day equivalent.

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