Daily News

Partners of the HYPOS alliance – a German consortium including VNG, Ontras and the Fraunhofer Institute – have launched a platform to store renewable hydrogen in a salt cavern in Bad Lauchstädt, Saxony-Anhalt. The plan is to build Europe’s first hydrogen storage and operate it for research purposes.

The Hill Top Energy Center in Nemacolin, Pennsylvania, will be powered by one of GE’s HA gas turbines. Kiewit Power Constructors (Kiewit) will handle EPC on the project, including the integration of a 7HA.02 gas turbine into the power plant which is due operational in 2021.

Occidental Petroleum has sweetened its buyout bid for Anadarko, now offering 78% cash and 22% stock rather than a 50:50 split, in an effort to outbid Chevron. Anadarko reacted by stressing the Chevron Merger Agreement is still valid, but analysts reckon the revised terms and Occidental’s pledge to sell Anadarko’s Mozambique LNG stake to Total could force Chevron to improve its offer.

NRG Energy’s latest quarterly earnings came in at $0.34 earnings per share (EPS) for the quarter, just below analysts’ estimate of $0.39. During the second quarter of 2019, the utility accumulated revenues of $2.17 billion, up 4.8% compared to the same quarter last year. Return on equity was 129.32% that quarter, resulting in a net margin of 2.58%.

The UK energy regulator Ofgem has been reviewing, and revising downward, some incentive schemes for small gas- and diesel-fired power plants. Proponents of decentralized power solution warn a withdrawal of subsidies could make developers scrap 2,000 MW of planned capacity. In contrast, operators of larger power plants claim that larger payouts to distributed gensets would lead to a ‘market distortion’ and discourage investments in flexible combined-cycle gas power units.

The French government has decided to put a cap on carbon emissions from its coal-fired power plants starting from 2022. The measure is meant to ensure that “they are forced out of the market,” energy minister Francois de Rugy said when announcing the new draft law.

The Canadian utility Capital Power has agreed to acquire Goreway Power Station Holdings, jointly held by JERA and Toyota Tsusho and operator of the 875 MW Gorway Power Station in Ontario. The deal will be financed through RBC Capital Markets and TD Securities by issuing 4.3 million in subscription receipts through a Public Offering. Gross proceeds are expected to total about $130,290,000 million.

Royal Dutch Shell has increased its investment in research on hydrogen production through electrolysis as well as pilot projects, singling out the fuel as "one of the world’s energy pathways to reach the emission reduction targets of the Paris Agreement." The share of hydrogen in final energy consumption is forecast to rise from less than 1% before 2040 to 6% by 2070.

Iraq’s Ministry of Electricity has signed an implementation agreement with Siemens to kick off the execution of the Iraq Roadmap. Phase-1, valued at 700 million euros ($785m), include EPC for the 500 MW Zubaidiya power plant, the upgrade of 40 turbines and grid infrastructure. The entire four phases of the Roadmap could see contracts awarded for up to $14 billion.

The Asian Development Bank (ADB) is co-financing one of the largest combined-cycle gas power plants in Indonesia, the 1760 MW Jawa-1 unit. This week the ADB started to provide its first drawdown of funds under a private sector financing package totaling more than $305 million.

Dubai Electricity and Water Authority's (DEWA) extension of its M-Station power and desalination plant in Jebel Ali has increased the plant’s capacity to a current total of 2,885 MW and 140 million imperial gallons of water per day. Siemens handled EPC and equipment delivery. The combined cost for M-Station’s construction and expansion amounts to AED 11.669 billion (US$ 3.177 billion).

Neonenergia, a Brazilian electric utility with 4.5 GW installed capacity and majority-held by Iberdrola, has started a second attempt for an IPO after it had to call off an effort to get listed on the Sao Paulo Stock Exchange in 2017. Iberdrola shareholders now hope for higher price in the IPO, based on Neonenergia’s improved results since its merger with Elektro.

The French oil major Total has announced plans to invest between $1.5 billion and $2 billion per year on low-carbon power sources in a strategic shift to the retail energy sector. CEO Patrick Pouyanne said the Group’s target of 7 million retail energy clients in France and Belgium, equaling about 15% of the market, would be achievable before 2022.

Ukrainian agro-holding I&U Group has contracted KTS Engineering, INNIO’s authorized channel partner, to supply a power solution based on four Jenbacher biogas cogeneration units for a new zero-waste biogas plant. The biogas CHP will reduce I&U Group annual carbon footprint by 24,000 tons.

Iceland, Liechtenstein and Norway – the European Free Trade Association (EFTA) states – will be able to auction their emission allowances on the common EU Emission Trading System (EU-ETS) starting from June. The European Energy Exchange (EEX) said it is about to publish an auction calendar that includes the EFTA states volumes.

News in Brief

Shell Energy ordered to refund overcharged UK customers

June 17 – UK energy regulator Ofgem has ordered Shell Energy Retail to refund around 12000 customers who were overcharged after the Government’s cap on gas and electricity prices came into force in January. Shell Energy Retail s agreed to refund these customers by paying £29,000 in compensation (£5 per fuel), and also pay an additional £200,000 into Ofgem’s voluntary redress fund.

BASF enters battery market

June 14 – German chemical company BASF is using NGK Insulators’ sodium sulfur batteries as its entry point into the energy market. The Japanese manufacturer NGK is currently the only maker of the large-scale sodium sulfur (NAS) batteries, capable to store several hours of energy. A joint project in northern Germany uses NAS batteries that store energy for five hours, while a recently completed project in Abu Dhabi using 108MW / 648MWh of the systems with a full six hours storage duration.

CNPC boosts domestic gas production

June 13 – China National Petroleum Corp (CNPC), the largest Chinese oil and gas company, has announced plans for domestic natural gas output to reach 55% of overall domestic supply by 2025. Last year, CNPC managed to boost production by 5.9% to reach 138.02 billion cubic metres, while also increasing imports of pipeline gas and LNG.

Gazprom taps new gas deposits for Nord Stream 2

June 12 – Gazprom is fast-tracking hydrocarbon production in northwest Russia to boost reserves for export through the Nord Stream 2 pipeline (55 Bcm/y), currently being built through the Baltic Sea. At a meeting with Nord Stream shareholders, Gazprom noted that its Yuzhno-Russkoye field has yielded about 276 Bcm of natural gas, including 0.9 Bcm of hard-to-recover Turonian gas, since the start of operations. Turonian gas reserves, consisting of about 99% methane with no heavy residues, lie at a depth of 800–850 meters in reservoirs with low permeability. Commercial production at the Turonian deposit is scheduled to start in late 2019.

PG&E turns off electricity to avoid wild fires

June 11 – Pacific Gas and Electric Company (PG&E) has turned off electricity for some Californian communities at risk of a wildfire during the lastest heat wave. The authorized blackout started on Saturday in Napa, Solano and Yolo counties, with electricity being gradually restored over the course of Monday. Approximately 16,000 customers have been affected.

Gazprom to build power plants in Serbia

June 10 – Gazprom Energoholding has signed an Agreement of Intent (AoI) to build an upgrade several gas-fired power plants in Serbia. Together with Novi Sad, Gazprom Energoholding is already building a CCGT with some 200 MW capacity near a refinery in the Serbian town of Pancevo.

U.S. fund splashes out $4bn to buy El Paso Electric

June 7 – Infrastructure Investment Fund (IIF), a private investment vehicle within J.P. Morgan Inc., has agreed to acquire the U.S. utility El Paso Electric Co for $68.25 per share in a cash transaction. The enterprise value on the transaction is estimated at $4.3 billion. El Paso Electric customers will receive a total $21 million in bill credits over three years.

Caterpillar gensets back up Finnish data center

June 6 – The Swedish telecom giant Telia has ordered 12 Caterpillar gensets to provide standby emergency power to back up operations at its new data center in Helsinki. The Cat dealer Witraktor figured a system which includes eight Cat 3516B and four 3516E generator sets. The Telia Helsinki Data Center is the largest such facility in Finland, and its primary electric power supply comes from a combination of wind, hydroelectric and biomass.

Capstone wins orders in Iraq

June 5 – Micro-turbine producer Capstone has secured an order for two C600 Signature Series microturbines to provide 1.2 MW of energy to power a triethylene glycol (TEG) dehydration facility near Basra, in southern Iraq. The contract also includes Capstone’s new self-cleaning pulse filtration system, allowing the turbines to better withstand hot and sandy conditions with minimal maintenance.

Gas to supply record 43% of US power needs

June 4 – This summer, natural gas is forecast to cover between 40% and 43% of 2019 peak electricity demand in all U.S. states except Texas, according to projections by the Energy Information Administration (EIA). Gas demand soared to nearly 10,700 billion cubic feet (Bcf) last summer, a 16% rise from 2017 levels. Should there be another heat wave this year, that record may well be broken. Capacity wise, natural gas is on course to top its 45% share in the U.S. power mix.

Lukoil to upgrade CHP at Krasnodar

June 3 – Russia’s oil and gas company Lukoil has received government approval to modernize and expand three combined heat and power units in Krasnodar. The gas-fired CHP units have more than 400,000 hours and ran an average 74% utilization rate, the operator said. The upgrade will add 150 MW of power generation capacity and Lukoil said it expects the revamped power plant to be ready for commissioning as early as 2022.

GE commissions Al-Qudus CCGT in Iraq

May 31 – GE Power has installed and commissioned a new 9E gas turbine at the Al-Qudus combined-cycle gas power plant, run by the Iraqi Ministry of Electricity’s (MoE). The CCGT was previously capable of generating up to 1,125 MW and the turbine upgrade adds another 125 MW of capacity.

Groundbreaking takes place for Ohio CCGT project

May 30 – This Thursday morning, groundbreaking will take place for the $500 million Long Ridge Energy Generation Project in Hannibal, Ohio. Long Ridge, a 485 MW combined-cycle power project, is being developed by Fortress Transportation and Infrastructure Investors (FTAI). It will create up to 350 construction jobs and some 25 permanent jobs. The CCGT is expected to open in 2021.

Asia to spend more on renewables than oil & gas by 2020

May 29 – Utilities in Asia-Pacific region will invest more in renewables than on oil and gas exploration by 2020. Total capital expenditure in renewables will rise above $30 billion in the region by 2020, according to forecast of the consultancy Rystad Energy. India, Australia, Japan, Vietnam and South Korea will led the way in Asia’s green energy transition.

Ichthys LNG looses court claim against power sub-contractor

May 28 – JKC Australia LNG consortium, developer of the US$34 billion Inpex-built Ichthys LNG plant near Darwin, has lost a US$1.9 billion court case claim against a power station sub-contractor. Construction of the power station was subcontracted to UGL-led group which CIMIC took over in 2016 and subsequently cancelled the Ichthys power contract. The Western Australian Supreme Court in Perth now dismissed an application by JKC Australia LNG for upfront payment of damages. The power plant’s five gas turbines have already been handed over to Inpex, and KBR aims for the plant to be ready for commissioning this autumn.

San Miguel Energy claims $6.19bn subsidy for Ilijan plant

May 24 – South Premier Power Corp. (SPPC), San Miguel Energy’s development vehicle for the 1,200-MW Ilijan gas power project, has claimed that it already paid $6.19 billion in subsidies to state-run Power Sector Assets and Liabilities Management Corp (PSALM) for its financial obligations as independent administrator. The build-operate-transfer (BOT) contract for the Ilijan plant will expire in 2022; and by that time, SPPC will get ownership of the plant.

Evolve approved as energy storage for VPPs

May 23 – Eguana Technologies’ new Evolve system has been officially approved as an energy storage system for Simply Energy’s Simply Extra VPP (virtual power plant) offer in South Australia. Customers who purchase an Evolve system can sign up for the Simply Extra VPP offer and receive up to $5,100 in VPP Access Credits. These credits will be calculated on a daily basis at $3.49 per day to a maximum of A$5,100, credited over a five year period.