Daily News

Lower gas-burn in the US power generation sector will drive down overall gas consumption this year and next. Though total gas use across all end-use sectors is set to rise slightly in 2022 from an average 82.5 billion cubic feet per day (Bcf/d) this year – still 0.7 Bcf/d less than in 2020, EIA figures show.

Wärtsilä has been contracted to supply an energy storage system to Zenith Energy, an Independent Power Producer (IPP) in Australia. Zenith sells most of its electricity to large mining companies, so the 9.2 MW / 8.7MWh energy storage will address cyclical load demand in an underground mine, operating in parallel with an engine-driven power plant.

MAN Energy Solutions has received an order to supply six 18V51/60G engines, along with balance-of-plant equipment, to Lakeland Electric’s new 120 MW engine-driven power plant, to be built on a brownfield site in the city. MAN committed to deliver all equipment by July 2022.

Hydrogenious Technologies, a spinoff of FAU University Erlangen, has raised €50 million to scale up and commercialise its LOHC (liquid organic hydrogen carrier) technology. Liquid hydrogen is an efficient way to store and transport the increasingly popular fuel. The funding round was led by JERA Americas, investing €15 million, along with Temasek, Chevron and Pavilion Capital.

Australia’s AGL Energy has signed a pipeline gas supply deal with Cooper Energy after plans to develop the Crib Point LNG project in Victoria State were rejected on environmental grounds. Cooper Energy will sell all uncontracted gas from Casino, Henry and Netherby fields to AGL as of January 2022.

Rolls-Royce Power Systems and its affiliate MTU showcase microgrids for mining companies that supply decentralized power while reducing emissions by up to 30% at the MINExpo, held in Las Vegas this week. The system connects diesel and/or gas-fuelled generator sets, MTU’s EnergyPack battery system as well fuel cells into one microgrid.

Liquefaction demand at US terminals will stay strong through end-October, Energy Aspects forecast given that Henry Hub gas prices for the winter strip (November-March 2022) are approaching $5 per million British thermal unit (mmBtu). Exports to Europe remain lucrative, analysts say, as long as prices at the Dutch TTF trading hub are above $18/mmBtu.

Construction works have started for the Haru Oni project in Puenta Arenas in the Patagonia region of Chile, where Siemens Energy and Porsche are building the world’s first plant for producing CO2-neutral fuel, so-call eFuel. Based on power-to-X technologies, the pilot plant is expected to produce around 130,000 litres of eFuels in 2022.

ExxonMobil and Global Thermostat, an R&D firm, have been testing an agile solution of soaking up carbon dioxide emissions from the air – notably from industrial facilities and power stations – at a pilot plant in California. Once economically viable, the solution could help meet the world’s climate goals.

ENKRAFT, a fund with a track record of investing in renewables, has acquired more than 500,000 shares in RWE – worth €16.4 million ($19m) at current prices. In a letter to RWE management, seen by Reuters, ENKRAFT urges the German multinational energy company to divest of its brown coal assets.

Siemens Energy has been selected by Aker Solutions to supply equipment to electrify the semi-submersibles for the giant Troll oil and gas field. Field operator Equinor estimates that reducing the electricity use from gas turbines on Troll B and C facilities will reduce annual CO2 emissions by 500,000 tonnes, or 1% of Norway’s total emissions.

Fourth-quarter spot gas prices at the US gas trading benchmark Henry Hub will average $4.00 per million British thermal units (MMBtu), or above — a 16% rise from levels forecast in August by the US Energy Information Administration (EIA). The price increase reflects lost production from Hurricane Ida combined with growing gas-burn for power generation.

Low gas production, down 28% year-to-date, combined with high coal and carbon prices and booming LNG demand in Asia, is fuelling a price rally at the British gas trading hub NBP. Though production is forecast to recover to 35 Bcm in 2022, LNG will have to balance demand this winter.

Welding works for the Nord Stream-2 pipeline have been completed, the operator announced, adding pre-commissioning activities will follow swiftly with the aim of putting the pipeline into operation before the end of this year. Nord Stream-2 will help meet Europe’s long-term energy needs, the operator stressed, and provide gas “under sensible economic conditions.”

News in Brief

German utilities invest record amounts

Jan 21 – Energy companies in Germany invested a record €20.5 billion in 2021, and the industry association BDEW expects capital expenditure will stay high throughout 2022. Out of the total sum, €4.3 billion were invested in electricity generation plants, €9.9 billion in transmission and distribution plants and €1.2 billion in other assets, such as metering points and information technology.

H2-powered plant for French Guiana

Jan 20 – Siemens Energy will set up a hybrid plant to supply stable baseload electricity to 10,000 households in French Guiana. An intelligent combination of 55 MW photovoltaics, an electrolyser to produce green hydrogen, fuel cells and energy storage is scheduled to be commissioned in the autumn of 2023.

Decarbonising UK homes

Jan 19 – Just 9 million hot water cylinders are currently installed in British homes, leaving a gap of 18 million homes whose heating would need to be decarbonised for the UK to meet Net Zero. According to the trade body HWA, the political focus of decarbonising heating has been solely on the heat source; such as boilers and heat pumps – while little to no focus has been on hot water cylinder. This gap in in government policy, which could result in unnecessary costs to consumers.

Cresta to fund Lapis Energy’s CCS projects

Jan 18 – Texas-based Cresta Fund Management has agreed to finance Lapis Energy’s CCS and clean hydrogen projects. The two partners are now looking to identify, design and develop projects for the permanent sequestration of CO2, targeting customers within the heavy industry and petrochemical companies.

GE to repower Long Lake plant

Jan 17 – GE will modernize four generors at the Long Lake hydropower plant in northwest US, operated by Avista Utilities. Once refurbished, the plant will have an installed capacity of more than 100 MW. The first modernized Long Lake unit is scheduled to go into operation at the end of 2024 and the last one in 2029

mtu to power Romania’s largest data center

Jan 14 – mtu Series 4000 gas generators will provide electricity heat and cooling for Romania’s largest data center. ClusterPower is building a 273,000-squaremetre technology campus near Craiova by 2025, where it will host five data centers with a Power Usage Effectiveness (PUE) of 1.1

Green hydrogen from Quebec

Jan 13 – Charbone has agreed to provide the US propane distributer Superior with green hydrogen from its Sorel-Tracy facility in Quebec, Canada, starting from the third quarter of 2022. The hydrogen will be delivered directly from Charbone’s H2 plant to Superior’s customers which include mining, power generation, transportation and industrial energy users. 

Cresta to fund Lapis Energy’s CCS projects

Jan 12 – Texas-based Cresta Fund Management has agreed to finance Lapis Energy’s CCS and clean hydrogen projects. The two partners are now looking to identify, design and develop project for the permanent sequestration of CO2, targeting customers within the heavy industry and petrochemical companies.

US rivals Australia as world’s largest LNG exporter

Jan 11 – Analysts at the US Energy Information Administration (EIA) are confident that the growth in US LNG exports could see America’s liquefaction and send-out capacity exceed that of Australia and Qatar – the world’s two largest LNG exporters. Looking ahead, the EIA expects US exports of the super-chilled gas will rise 17% from 2021 levels to average 11.1 Bcf/d from December through March.

Africa’s first FLNG plant arrives in Mozambique

Jan 10 – Coral Sul FLNG, Africa’s first-ever floating LNG facility has arrived in Mozambican waters. The plant is critical to develop the US$7 billion Coral South project, led by the Italian oil and gas company Eni. Some of the produced gas will be used for power generation in Mozambique, though most will be liquefied and sold to global markets.

GE snaps up Opus One Solutions

Dec 23 – GE Digital has agreed to acquire Opus One Solutions Energy Corp, a Californian software company that helps utilities integrate renewables and Distributed Energy Resources (DERs) at scale across the electric grid. The transaction is expected to close within 30 days, GE stated without disclosing what price was paid for the takeover.

Qatar invests in Rolls-Royce’s nuclear power business

Dec 22 – Qatar Investment Authority, the state’s sovereign wealth fund, has agreed to invest £85 million in Rolls-Royce SMR, the company’s new technology for small-scale, low carbon nuclear power. UK business and energy secretary Kwasi Kwarteng called the investment a “clear vote of confidence” in the UK’s nuclear innovation. It follows £210 million Qatari investment in the development in Small Modular Reactors. Now fully funded, Rolls-Royce SMR business also received £490 million through commercial equity and UK Research and Innovation (UKRI) grant funding. 

JERA helps Japanese film producer curb emissions

Dec 20 – Toho, a Japanese film producer and entertainment company, will get support from the country’s largest power producer JERA to reduce CO2 emission from film production. To that end, JERA will supply zero-emissions energy to Toho and draw up a roadmap to decarbonise the media company as a whole.

Tractebel develop concept to store H2 offshore

Dec 17 – Tractebel Overdick and partners have developed an offshore infrastructure and processing facilities concept that relies on the storage of hydrogen (H2) in offshore caverns. The design study outlines a scalable offshore platform for the compression and storage of up to 1.2 million cubic meters of hydrogen.

Ethatec uses CO2-free power to produce ethanol

Dec 15 – ESG Clean Energy has signed a letter of intent (LOI) with Ethatec to use ESG’s patented CO2-free gensets to its ethanol production. Ethatec uses waste from bakeries and pizza factories which is being crushed and then mixed with water and enzymes and heated in a multi-stage mashing process to saccharify the starch. It is then cooled and fed into fermentation tanks, where yeast is added. for alcoholic fermentation of the sugar. After 72 hours, the mixture is fed to a distillation system where ethanol is obtained.

Anax helps Magellan mine bitcoin under US$12m deal

Dec 16 – Ohio-based Magellan Scientific has entered a long-term accord, worth US$12 million, with Anax Power to generate zero-emission electricity from natural gas flows for Magellan’s distributed data centres, using 500 kW Anax turboexpanders. This green power will be used to lower the carbon-intensity of bitcoin mining and help US interstate pipeline operators and utilities accelerate their net-zero emission goals.

Cryogenic insulation market to top $4.6m by 2026

Dec 14 – The global market for cryogenic insulation is forecast to reach $4,659.85 million by 2026, expanding at an annual rate of 8.76% over the next five years. According to ResearchandMarkets, companies need to keep investing in R&D to deliver more efficient products at a lower cost and improve product durability.