Energy Storage

Speed and scale is of the essence for new energy storage to solve intermittency issues of a renewables role-out. However, there's little political will for subsidies and critics doubt that markets alone can sufficiently reward both flexibility and storage. If not, EU member states will likely fall short of their 40% emission reduction target for 2030.

Finland’s technology group Wärtsilä has launched an integrated solar PV and energy storage to deliver a true “renewables as baseload” solution that increases resilience and efficiencies. The adaptable Wärtsilä Hybrid Solar can be supported by a power producer’s existing grid infrastructure.

June 14 – Enel Group’s first utility-scale, stand-alone battery energy storage - the 25 MW/12.5 MWh Tynemouth project - is about to start operations, supported by a four-year contract with British System Operator National Grid to provide grid-balancing services. Enel bought the storage venture from Element Power in May 2017, and invested about 20 million Euros in the overall project, including construction.

UK Power Reserve has partnered with Fluence to deliver the first phase of its 120 MW battery storage portfolio to the British power grid. Fluence agreed to provide three 20 MW storage systems at sites in the Midlands and North West using its Advancion technology. All three new sites are due operational during winter 2018/19.

The Swiss arm of MAN Diesel & Turbo and ABB Switzerland have started to jointly develop, produce and commercialize a three-way Electro-Thermal Energy Storage system (ETES). Based on so-called ‘charging cycle,’ the ETES uses surplus renewable-electricity to generate heat and cold for storage in insulated reservoirs. The stored heat and cold can then be converted back into electrical energy on demand.

The world’s first liquid air energy storage (LAES) plant is being run by Highview Power at Bury, near Manchester. Supported by £8 million in UK government funding, the 5MW/15MWh LAES plant is the first operational LAES demonstration plant at grid-scale, providing backup electricity supply that is being utilized by the demand response aggregator KiWi Power.

Deployment of large-scale battery storage is rapidly increasing across the United States, but capital costs of energy storage systems vary greatly, dependent on the technology uses. Energy-oriented batteries systems, used for peakload shaving, are designed for longer durations and consequently have higher average costs per kilowatt and lower costs per kilowatthour. This type is mostly used in the California Independent System Operator (CAISO) area.

Technology of battery-based energy storage has matured and industry stakeholders in some regions of the United States have gained experience financing, procuring, and operating power storage installations. Lithium-ion chemistries batteries currently make up 80% of large-scale U.S. power storage, and most of the capacity is being installed in California followed by the Pennsylvania-New Jersey-Maryland Interconnection (PJM).

Mexico, the largest buyer of US pipeline gas and LNG, is preparing a tender for strategic storage at depleted oil and gas reservoirs. Cenagas, the Mexican National Natural Gas Control Centre, has already selected four underground sites – Acuyo, Brasil, Jaf and Saramako – from a list of 15 proposed sites. Registering strong bidding interest from foreign players, the Mexican Energy Secretariat (Sener) will hold the tender in September 2018.

Opinions differ widely when it comes to energy storage. Dominion Energy in its new long-term plan for Virginia and North Carolina notes that the price of battery storage showed it wasn’t ready for full consideration. Instead, the utility is looking to intensify the deployment of new gas-fired peaking power plants.

Dry natural gas production in the United States is forecast to reach a new record of 80.5 billion cubic feet per day (Bcf/d) in 2018, up from 73.6 Bcf/d in the previous year. According to the EIA’s latest Short-term Energy Outlook (STEO), the rise in US natural gas production will help replenish storage levels from current lows and support increasing natural gas exports, both via pipeline to Mexico and in the form of LNG.

Technological challenges are “taking root on the grid,” the New York Independent System Operator (NYISO) said with reference to an array of battery storage projects and the first offshore wind project off Long Island. Looking ahead, NYISO expects both baseload and peakload power demand to fall by about 0.14% through to 2028, caused by a rising use of distributed power sources and  energy efficiency measures.

Elon Musk, the man at the helm of Tesla, has hinted at the company’s Q1 investors’ call that a giant 1 GWh energy storage project would be announced soon. Highlighting the impact of Tesla’s 129 MWh battery in South Australia, he said “its grid stabilization was much greater actually than even a gas turbine plant, which normally respond quite fast.”

Siemens is applying its electrification experience in the marine industry to offshore oil and gas, focussing on reducing emissions and risk in harsh operational environments. BlueVault, Siemens’ advanced lithium-ion battery-based solution, is suited for both all-electric and hybrid energy-storage applications.

ITM Power and Northern Gas Networks (NGN) have announced the outcome of a feasibility study, evaluating the potential of deployment and cost-effective operation of 50MW energy storage capacity within the boundaries of the NGN gas distribution network. Low Thornley in Gateshead is being recommended as the most suitable site for a power-to-gas demonstration plant in the size range 50-100MW.

Page 10 of 17

News in Brief

Enel’s Q1 investment up 8.8%

May 7 – Italy’s state-dominated utility Enel has stepped up investment in renewables and power transmission grids in the first quarter by 8.8% to €2,035 million in a further shift to green energy. Revenues fell by -14.4% to €17,107 million over the same period, largely due to losses in thermal generation and trading activities in Italy and Spain as well as lower volumes of electricity sold into the Spanish end-user market.

Germany advances Net Zero target to 2045

May 6 – The German government has pulled forward the date for Net Zero emissions to 2045 in a move designed to accelerate and intensify efforts to reduce emissions from the transport and power sector. The new target is to curb emissions by 65% by 2030 (up from the previous 55% goal) and reach a 88% reduction by 2040, followed by Net Zero five years later.

Cummins Q1 revenues up 22%

May 5 – Cummins today posed a 22% rise in first quarter revenues to $6.1 billion. Sales in North America increased 7% while international revenues surged 45% largely due to strong new product sales in China and India.  Based on latest developments, Cummins raised its full year 2021 revenue guidance to 20-24%, a considerable rise from previous 8 - 12% forecasts.

Actis vows to help Egypt divest Siemens-built CCGT

May 4 – Egypt’s sovereign wealth fund is cooperating with the private equity firm Actis to sell a 25-year concession to operate three 4.8 GW combined-cycle power plants built by Siemens under a €6 billion contract. The three CCGTs are owned by the Egyptian Electricity Holding, and Actis CEO Ayman Soliman promised to help selling one of the three plants.

RIX launches mobile hydrogen system

April 30 – California-based RIX Industries has launched an industry-first mobile hydrogen generation unit, part of its M2H2-Series of scalable Methanol-to-Hydrogen systems. Able to generate hydrogen onboard and on demand, the system is applicable for ships and remote small-scale production of the green fuel with the aim of replacing diesel for power generation. The M2H2 systems, combined with fuel cells, can produce electricity without any NOx, SOx, or particulate matter and Net Zero CO2 emission with renewable methanol.

US gas future hit 7-year high

April 28 – US natural gas futures have increased over 2% to a seven-week high as LNG exports go from strength to strength, while domestic production eased off slightly. Moreover, a return of colder-than-average weather has pushed up gas demand for heating significantly so that utilities had to withdraw gas from storage, which is rather unusual in April.

Zhongyu Gas bucks the trend

April 27 – Zhongyu Gas, a pioneer in the Chinese gas industry, has achieved remarkable growth during the pandemic. The Hong-Kong headquartered TSO recorded a turnover of approximately HK $8,544 million in 2020, up 4.9% year-on year, while profit attributable to owners of the group was HK $1,057 million, a staggering 145.7%. At the end of 2020, the turnover of Zhongyu’s value-added gas services segment recorded HK $636 million, a year-on-year increase of 54.2%. To date, Zhongyu Gas has 18,777 industrial customers and 3.96 million residential users.

Germany agrees higher renewable goals for 2022

April 26 – The German parliament has voted in favour of higher tender volumes for next year’s wind and solar PV installations. However, parliamentarians did not yet agree on a new renewable target for 2030, even though this has become necessary after the EU raises its overall emission reduction target to 55%.

Rolls-Royce to deliver 16V 8000 engines to Taiwan

April 23 – British engineering giant Rolls-Royce has delivered the first 16-cylinder engines of the MTU Series 8000 to a customer in Taiwan. The shipyard CSBC will install the two engines, capable to deliver 7,280 kilowatts of power each, in new patrol vessels for the Taiwanese Coast Guard. The 16V engines‘ „big brother“ - 20V 8000 has been the best-selling engine in its power class since its introduction around 20 years ago, Rolls-Royce noted.

Rolls-Royce to deliver 16V 8000 engines to Taiwan

April 23 – British engineering giant Rolls-Royce has delivered the first 16-cylinder engines of the MTU Series 8000 to a customer in Taiwan. The shipyard CSBC will install the two engines, capable to deliver 7,280 kilowatts of power each, in new patrol vessels for the Taiwanese Coast Guard. The 16V engines‘ „big brother“ - 20V 8000 has been the best-selling engine in its power class since its introduction around 20 years ago, Rolls-Royce noted.

GE to equip Verbund’s pump storage power plant

April 22 – GE Power Conversion has been selected to equip Verbund’s new fully-fed pump storage power plant  Reißeck II+ in Kärnten, Austria. For the new 45 MW unit, GE will supply three MV7616 converters which are water cooled fully fed converters with an electrical voltage of 6.6kV each. In the wider Kärnten area, Verbund operates a total of 1,460 MW of hydropower plants that are often used for pump-water energy storage.

Fluxys takes stake in Brazilian TSO

April 21 – Belgian gas company Fluxyis, the operator of the Zeebrugge LNG import terminal and stakeholder in Dunkirk LNG and the TAP pipeline, has bought a minority stake in a Brazilian gas transmission system operator. The deal is for a stake in Transportadora Brasileira Gasoduto Bolívia-Brasil (TBG), the owner and operator of a 2,600-kilometres pipeline system that links the southern part of Brazil with neighbouring Bolivia. Fluxyis said the equity transfer was made via the US investment fund, EIG Global Energy Partners.

MHI launches 90MPa hydrogen booster pump

April 20 – Mitsubishi Heavy Industries (MHI) has developed an ultra-high pressure liquid hydrogen booster pump for hydrogen fuelling stations. With 90 megapascal (MPa), the new unit achieves considerably higher pressure than the earlier 40 MPa unit. It is located at MHI’s research & innovation center in Nagasaki District, Japan.

New EU target may force Germany to achieve 68% emissions cut

April 19 – European Union leaders’ decision to raise the bloc’s 2030 target for cutting emissions by “at least 55%” means that Germany needs to step up its efforts and may have to cut emissions by 62% to 68% over 1990 levels, researchers say. Policymakers in Berlin initially aimed for a 55% reduction by 2030 but this is now no longer enough to comply with stricter rules.

Trafigura co-sponsors MAN’s ammonia engine

April 16 – Trafigura, a global commodity trading house, has agreed to co-sponsor the development of MAN Energy Solutions ammonia-fuelled engine for maritime vessels. The ammonia engine is expected to be commercially available for large-scale ocean-going ships by 2024, followed by a retrofit package for existing maritime vessels by 2025. In the future, ammonia-fuelled engine are also meant to be used for power generation.

Tula dDSF helps curb NOx emissions by 74%

April 15 – Tula Technologies, a leader in propulsion technology, and Cummins have showcased the results of a study on the effectiveness of Tula’s diesel Dynamic Skip Fire (dDSF) in reducing nitrogen oxides (NOx) by 74% and carbon dioxide emissions by 5% on a Cummins X15 HD Efficiency Series diesel engine. In comparison with current engine technologies and modifications to the thermal management techniques, use of the dDSF system saved 20% in fuel and related costs.

Marubeni starts EPC works for Rabigh IPP

April 14 – Japan’s Marubeni Corp has been granted limited-recourse financing for the 300 MW Rabigh solar IPP project in Saudi Arabia’s Makkah Province. The loan was granted by Mizuho Bank, Al Rajhi Banking and Investment and Japan’s Bank for International Cooperation. EPC work on the project is scheduled to start in early May. All electricity from the Rabigh IPP will be sold to the Saudi Power Procurement Company (SPPC) for 25 years starting with the plant’s commissioning.

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