Daily News

GE has published a whitepaper on how accelerating deployment of renewables and gas power can help Japan combat climate change. Larger shares for wind and solar energy, the restart of nuclear power, and hydrogen/ammonia are in the forefront of the government’s 6th Strategic Energy Plan as it seeks to establish a carbon neutral society by 2050.

Though prices at Henry Hub, the British NBP and the Dutch TTF are breaking new records seemingly every week, global LNG demand keeps rising. According to analysts that’s because "natural gas has by now exhausted potential price-driven switching into coal." So, next levers are being sought in the US – from reducing pipeline gas exports to Mexico to more expensive oil-fired generation.

JERA, Japan’s largest LNG importer and power producer, has started to use small volumes of ammonia to fuel Unit-5 of its Hekinan thermal power station. Together with IHI Group, JERA is seeking to demonstrate the large-scale utilization of ammonia in thermal combustion where the green fuel is meant to ultimately make up a fifth of the heating value.

Electricity production costs could be halved by 2050, if countries adopt green energy systems faster than planned. Speeding up the rollout of wind farms and solar PV, combined with energy storage and gas-fired balancing plants can provide cheaper electricity compared to current fossil fuel-based energy systems, Wärtsilä’s ‘Front-Loading Net Zero’ report finds.

US oil firm are earning a growing share of their revenues from natural gas. During the first half of 2021, production outages after the February cold freeze in Texas and sharp rises in energy demand after the pandemic made Henry Hub gas prices briefly triple in price, which in turn boosted profits for upstream companies.

Dominion Energy has agreed to sell its Questar Pipelines business on the Wyoming-Utah border to Southwest Gas Holdings for $1.975 billion in an all-cash transaction. The deal includes the assumption of $430 million of existing debt. The sale is expected to close in the fourth quarter of 2021.

Stena Power has completed model testing of the LNG receiving technology ordered for Delta Offshore Energy’s integrated LNG-to-power venture in Vietnam. Delta is using Stena’s jetty-less system to regasify and transfer liquefied natural gas to fuel a 2,300 MW power project, under development at Bac Lieu Province in Vietnam’s southern Mekong Delta.

Gridcognition, an Australian technology start-up, has partnered with UK-based smart energy solutions provider SNRG to accelerate the electrification of UK homes. They will use Gridcognition’s simulation platform to design and optimise microgrids for fully electric residential housing developments. Projects will break ground as early as 2022.

US and European markets face a further “bull run” in natural gas prices. According to Energy Aspects, markets have “nearly maximized their gas-to-coal switching potential,” and considering low storage inventories and a shortfall of US LNG deliveries from Freeport terminal, prices at US Henry Hub and the Dutch TTF could surge substantially with the onset of the winter season.

Copelouzos Group, one of Greece’s largest infrastructure investors, has signed contracts with Damco Energy and GE to realise a 840 MW gas combined-cycle power project. The CCGT will be build at the Port of Alexandroupolis where Copelouzos is also planning an offshore LNG import terminal. Completion is scheduled for spring 2024.

Global Reporting Initiative (GRI) has launched first sector standard for oil & gas companies, raising the bar particularly for greenhouse gas (GHG) emissions. Indirect Scope-3 GHG emissions from end-use of products will need to be included in addition to Scope-1 and 2 emissions.

Exelon has presented its new leadership team as the company’s energy business is being carved out from the first quarter of 2022. Christopher Crane, Exelon CEO, will continue to lead the firm’s regulated utility business. Joseph Dominguez, currently CEO of ComEd, was appointed incoming CEO of the competitive energy business that will trade under the new name Constellation.

California’s Department of Water Resources (DWR), the government body that manages parts of the state’s energy supply, has ordered four of GE’s TM2500 aero-derivative gas turbines. GE delivered, installed, and commissioned the units in 42 days. They generate up to 120 MW peaking power at Roseville and Yuba City power stations, north of Sacramento.

JERA has opened a new office in Dubai with a view to enhancing business relations in the Middle East, where JERA MEA will participate in six power generation and infrastructure projects. Under its ‘JERA Zero CO2 Emissions 2050’ objective, the Japanese utility is investing in thermal power plants that do not emit CO2 during the combustion process.

News in Brief

CCUS market to reach nearly $3bn in 2025

Oct 25 – The global carbon capture, utilization, and storage (CCUS) market will grow from $1.30 billion in 2020 to $1.46 billion in 2021, according to ResearchAndMarket estimates. The rebound comes as companies return to normal operations and sales, after a pandemic-related slowdown. Analysts expect the market will keep growing at a rate of nearly 20% annually to reach $2.97 billion by 2025.

SDG&E accelerates drive towards Net Zero by 2045

Oct 20 – San Diego Gas & Electric Company (SDG&E) has set a new sustainability strategy, outlining new and accelerated goals to help meet its pledge to reach net zero greenhouse gas (GHG) emissions by 2045. SDG&E it now seeks to operate a 100% zero emissions vehicle fleet by 2035 – five years earlier than planned.

B&W develops biomass-to-hydrogen plant in Australia

Oct 19 – B&W's Renewable segment and Port Anthony Renewables Ltd have started to develop a biomass-to-hydrogen energy project in Victoria, Australia, based on B&W’s BrightLoop technology. When completed, the plant is expected to be part of the largest green hydrogen hub in south-eastern Australia.

LNG prices rise faster than oil

Oct 18 – Liquefied natural gas and pipeline supplies have experienced an even sharper increase in prices in 2021 than oil, driven by a combination of circumstances that included a strong recovery in demand in North Asia, southeast Asia and Europe, unseasonal weather and planned and unplanned capacity outages.

Wärtsilä shaft gensets to power two LNG carriers

Oct 14 – The Finish technology group Wärtsilä has been awarded a contract to supply four shaft generators to provide electricity take-off from the main engines of two LNG carriers. The ships are being built at the Hyundai Heavy Industries (HHI) shipyard in Korea on behalf of the Capital Gas Ship Management of Greece.

VoltH2 gets green light for large hydrogen plant

Oct 13 – Vision Hydrogen Corp has announced that its affiliate VoltHe has received building and environmental permits to realise its first large-scale hydrogen plant at the Dutch North Sea Port of Vlissingen. The 5 MW hydrogen plant is located near existing high voltage power and gas infrastructure as well as large wind power assets. Once operational, it will produce around 3,500 tons of green hydrogen per year and will be scalable to 100 MW or 14,000 tons.

Tesla overtakes German e-cars

Oct 12 – Sales of Tesla in Germany has overtaken that of leading German carmakers. In September, more electric Tesla Model 3s were registered in the country than leading domestic models, such as the BMW 3 Series, Audi A4 and Mercedes C-Class combined.

EnerMech spends £500k on crane training tech

Oct 11 – EnerMech has invested £500,000 in new crane simulator training systems at its Luanda (Angola), Doha (Qatar) and Great Yarmouth (UK) facilities. The British company recently formed a joint venture with 3t Energy Group to bring the KraneSIM-6000 equipment to both Qatar and Angola and offer in-country training across client organisations globally.  

Germany finances green hydrogen projects abroad

Oct 8 – The German government has agreed to support green hydrogen projects in other countries with up to €350 million by 2024, the economy ministry said when publishing a directive with relevant guidelines. Moreover, financial support is given to projects that produce and process green hydrogen for storage, transport and use in countries outside the EU through investment grants worth up to €15 million each.

UK e-car sales surge 186%

Oct 6 – Sales electric cars in the UK have surged 186% to a total of 108,000 in 2020 during the pandemic, up from just 38,000 in the previous year. Latest statistics show there were nearly 300,000 pure-electric cars on UK roads at the end of August 2021, and more than 600,000 plug-in models if including plug-in hybrids (PHEVs).

FogHorn deploys AI software at Chugoku Electric Power in Japan

Oct 4 – FogHorn, developer of Edge AI software, has deployed its Internet of Things (IoT) software at the Chugoku Electric Power hydroelectric power plant. The AI solutions will make the power gen process more efficient and enhances workplace safety. Chugoku Electric Power employs nearly 9,200 workers across 114 power units in the western part of Honshū, the largest island of Japan.

Rolls-Royce supplies MTU engines for ferry propulsion

Oct 1 – Rolls-Royce's new MT engines, automation system, and MTU Go! tool for remote service have future-proofed the high-speed catamaran Avemar Dos, run by the Spanish operator Balearia. Four MTU 20V1163 M84 units replaced the previous 1163 units, taking the vessel to a "new level of ecological soundness," the manufacturer says.

GES appoints former Puma Energy Chairman as NED

Sept 30 – Global Energy Storage (GES) has appointed the former Puma Energy Chairman, Graham Sharp, as an NED. Graham will support GES on its ‘new energies’ strategy for the energy transition, focusing on hydrogen fuels and hydrogen carriers space.

Aggreko reaches 2 GW of live power gen capacity

Sept 29 – Aggreko has today announced it has reached 2GW of live global gas power capacity and growth in flare gas to power and stranded gas projects. This new record follows a milestone of exceeding 1GW of delivered flare gas power projects in 2020.

Wärtislä renews O&M agreement with Lafarge Africa

Sept 28 – The Finish technology group Wärtsilä has renewed a long-term Operation & Maintenance (O&M) agreement with Lafarge Africa, a large producer of building materials in Nigeria. The agreement covers the 100 MW Lafarge Ewekoro power plant, which provides a dedicated supply of electricity to the company’s concrete and cement manufacturing processes.

Rolls-Royce supplies MTU engines to Sanlorenzo

Sept 27 – Rolls-Royce business unit Power Systems will become one of the leading engine suppliers for Sanlorenzo, delivering MTU 10V, 12V and 16V 2000 yacht engines with a compact IMO 3 solution. A framework contract from 2022 through 2024 has been signed at the Monaco Yacht Show.

Shell exits Permian Basin

Sept 24 – Royal Dutch Shell has sold all its upstream interested in US Permian Basin to ConocoPhillips for $9.5 billion in cash. Shell’s assets in the Permian include around 225,000 net acres with a current production of around 175,000 barrels per day equivalent.

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