Daily News

The German government is striving to set up a production and import chain for renewable hydrogen from West African countries, where it can be produced cheaper due to better wind and solar condition. Once liquefied and shipped to a German port, the green hydrogen would help decarbonize the country's energy-intensive industry and transport sector.

Thailand’s latest Power Development Plan aims for natural gas to provide over 53 percent of the country’s energy by 2037, which requires a boost in LNG imports. With the cost of domestic gas production reaching $8/MMBtu, Electricity Generating Authority (EGAT) is keen to import spot LNG cargoes.

As Germany exits both nuclear and coal generation simultaneously over the next few years, more flexible gas-fired generating capacity and energy storage will be required to balance the grid. The gas industry hence urges the Government to introduce regulation to launch capacity markets to incentivize enough new-build gas power units by 2030.

New Fortress Energy (NFE) has signed an LNG supply deal for eight cargoes a year from its liquefaction units in Miami, Florida, for 10 years through January 2030. Most cargoes will head to Puerto Rico, where NFEnergía supplies regasified natural gas to two converted units at the San Juan power plant.

Nigerian National Petroleum Corporation (NNPC) has secured a grant worth nearly $1.1 million from the US Trade and Development Agency (USTDA) to evaluate the technicality and economics of developing a 1,350 MW combined-cycle gas power plant in Abuja. The CCGT would run on domestic gas.

China’s coronavirus health crisis has slashed the country’s gas demand by 2 billion cubic metres (Bcm) by the end of the first week in February, mostly due to industry closures and quarantined workers. Anticipating a “limited resumption of economic activity,” Wood Mackenzie says full-year 2020 gas consumption could be between 6 Bcm and 14 Bcm lower.

Australian mining giant Fortescue Metals Group is fast-tracking a US$450 million power generation project at its Pilbara iron ore mine. Featuring 150 MW of gas-fired capacity, 150 MW of solar photovoltaic and a large-scale battery storage, the hybrid project will help reduce the mine’s energy costs.

Mýa, a digital interface launched by MAN Energy Solutions, enables the exchange of data in a controlled and secure manner among participating Original Equipment Manufacturers (OEMs), power plant operators and asset owners. The aim is promote collaborations among the marine, power generation, and energy industries.

Energy independence of the United States will be tested in the 2020s, unless there is a sharp reversal in the collapse of fresh capital expenditure in the shale sector, CME Group finds. Currently, CAPEX in shale oil and gas fracking is dwindling, and rig counts are falling.

Qatar Petroleum's CEO Saad bin Sherida Al-Kaabi has told the Gas Exporting Countries Forum (GECF), often referred to as Gas OPEC, that renewables are "no threat" to natural gas but rather “complementary.” As Qatar advances solar PV projects, fast-ramp gas gensets are seen as ideal backup systems.

Ships at the Port of Kiel will soon benefit from Germany’s largest shore power system to date. With 16 megavolt amperes (MVA), Siemens’ Siharbor solution will supply two ships simultaneously with certified eco-power. Test operation will start in the 2020 cruise ship season.

Nemo Link, the first ever UK-Belgium power cable with 1,000 MW capacity, has allowed National Grid to import substantial amounts of cheap renewable energy. Over 5,889 Gigawatt-hours (GWh) of electricity were imported to the UK in the first year of operations and nearly 176 GWh to Belgium through a "near real-time" power trading system.

News in Brief

Wärtsilä to retrofit CHP in Spain

May 26 – The Finish engine maker Wärtsilä has bagged an order to supply and install a 34SG gas-fuelled engine generating set for Rofeica Energia's combined heat and power plant in Barcelona, Spain. The installation of the gas engine will allow Rofeica to switch the CHP from heavy fuel oil to gas-fuelled operation, reducing emissions.

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.