Technology group Wärtsilä is working on a feasibility study for a Power-to-Gas facility at Vantaa Energy’s waste-to-energy -plant in Finland. The project will produce synthetic biogas using emissions and electricity generated at the waste-to-energy plant, helping Vantaa to exit coal by 2022.
The 3000th gas genset of Rolls-Royce's MTU-branded Series 4000 natural gas engine has rolled off the production line, set to be delivered to VPower Group for a project in Myanmar. Series 4000 gas engines are part of MTP since October 2004 and are being produced in Friedrichshafen, Germany.
The Germany regulator has turned down Gazprom’s application to exempt the Nord Stream-2 gas pipeline (55 Bcm per year) from common EU market rules that stipulate the unbundling of gas producer and supplier. Under EU rules, Nord Stream-2 would also need to open up to third party suppliers.
Siemens is transporting the first HL-class turbine from its factory in Berlin to SSE’s Keadby-2 power project. With 593 MW capacity, the SGT5-9000HL will first be tested in simple-cycle mode and then expanded into a combined-cycle unit with 840 MW and over 63% baseload efficiency.
Despite the recent oil market shock, a fifth of industry leaders said in a DNV GL survey their companies have entered the hydrogen market, anticipating the synthetic fuel will be a big part of the energy mix by 2030. DNV GL is involved in pilot projects in Norway, the Netherlands and the UK.
Demand response specialist Flexitricity has signed a deal with Gresham House Energy Storage Fund to optimise revenue for the 50-MW/75-MWh Thurcroft energy storage in South Yorkshire. National Grid called the project a milestone towards reaching the UK’s net-zero 2050 emission target.
Electricity and gas prices have been raised in Bangladesh to reflect the higher cost of LNG, imported to compensate for the country’s depleting domestic gas reserves. Gas prices are already 40% higher for several months while wholesale power prices were hiked in Q1 this year.
Though lockdowns are gradually lifted in several U.S. states, the government expects an 11% drop in energy-related emissions as demand from industry remains low. As the American economy slides into recession due to the coronavirus crisis, emissions are set to fall more than the 5% drop in GDP.
German utility Uniper is working with Wärtsilä on a gas-drive power plant for swb Bremen. The flexible unit, build adjacent to a coal-fired plant in Hastedt, will run on nine 31SG gas-drives and generate 105 MW of electricity as well as 93 MW thermal output for district heating.
RWE Supply & Trading’s first quarter results have taken a battering from the turmoil on commodity markets caused by the corona crisis. Adjusted first quarter EBITDA plunges to €170 million – a steep drop from “exceptionally good” Q1 earnings of €271 million in the year prior.
German research minister Anja Karliczek has called on the government not to “waste any more time debating” and come to a prompt decision on a national hydrogen strategy. The latest draft focuses on green hydrogen from renewable energy, as well as blue hydrogen, produced via carbon capture storage (CCS).
Energy research, development and demonstration (RD&D) budgets have increased by 4% worldwide to reach $20.9 billion. Low-carbon research accounts for 94% of the overall budgets in the International Energy Agency’s (IEA) member countries, though the Covid-19 pandemic caused a noticeable shift in focus to business streamlining and cost-cutting.
News in Brief
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.
U.S inventories at record highs
May 4 – Inventories for crude oil and natural gas have reached a new record high in the United States, as fuel demand declines both for transport and the electric power sector. From March 13 – when a national emergency was declared due to the Covid-19 pandemic – to April 24, U.S. commercial crude oil inventories increased by 74 million barrels, or 16%, according to government figures. The acute scarcity of crude storage on April 20 led to a sell-off of future contracts at negative prices.
Wärtsilä to service Argentinean power plant
May 1 – Wärtsilä has signed a 10-year maintenance and service agreement with one of Argentina’s upstream companies. Under the deal, Wärtsilä provides a guaranteed performance for a 57.6 MW onsite power plant in the southern part of Argentina, with excess power sold to the national grid.
Zink-Air batteries for NY
April 30 – Zinc8 Energy Solutions has entered a cooperation with the New York Power Authority (NYPA) to install a zinc-air battery energy storage, backed by $2.55 million in state funding over a three year period. The Zinc8 ESS units can deliver power in the range 20-50 MW, with capacity of 8 hours of storage duration. The project will help New York State achieve its goal of installing 3 GW of energy storage by 2030.
UK again ‘coal-free’
April 29 – The UK continues to break its coal-free record as thermal coal-fired power plants currently remain off the system, according to National Grid data. Faltering demand due to the pandemic and high renewable energy supply radically altered the energy mix in many developed countries, with power in-feed from solar PV reaching 10 GW in Britain at the start of this week. “Coal is due off the system by 2025 and renewables have shown they are cost competitive with a viable route to market,” Delta-EE director Andy Bradley commented.
China’s fuel demand to rebound in Q2
April 28 – China’s demand for refined fuel is forecast to rebound in the second quarter, nearly reaching year-ago levels, as lockdowns to contain the coronavirus get lifted. Analysts at SIA Energy in Beijing expect second quarter demand for the three main transportation fuels to increase by 1.1 million barrels per day compared with the first quarter of 2020.
