Developers of LNG-to-Power projects are advised to secure flexible gas delivery terms through an aggregator before the market flips again and demand outstrips supply. According to Watson Farley & Williams, this is likely to happen by 2022 or 2023 as current Capex cuts delay new liquefaction projects.
Fast adoption of floating LNG technology across Asia is opening up new gas markets in Indonesia, Malaysia, Singapore and the Philippines. According to Black & Veatch, gas-fired power projects are “attractive for emerging markets” due to advantages in price, reliability and fuel access over developing technologies such as battery storage.
Two power projects in West Africa have received MAN engines, and the German manufacturer handed over two further plants in Gambia and Guinea. Eight MAN 14V51/60 engines drive a 110 MW plant in Mali, while six 9L51/60 engines supply a cement factory with 54 MW electricity in Senegal.
California-based Bloom Energy has agreed with Idaho National Laboratory to independently test the use of nuclear energy for electrolysis. Rather than ramping down baseload nuclear power plants, the surplus energy can be used cost-effectively to produce green hydrogen.
Falling costs for lithium-ion batteries and hydrogen electrolysers have rendered both technologies ready for mass commercialization. The International Energy Agency (IEA) projects the cost of 4-hour battery systems to fall to $220/kWh by 2040, so utility-scale battery deployment could reach nearly 220 GW by 2040.
Though green hydrogen, produced from variable wind and solar generation, can act as long-term energy storage – it is not economically viable yet. To get from 80,000 tonnes produced today to a required 35 million by 2035, governments will need to "heavily incentivise green hydrogen – and soon," analysts say, similar to past subsidies for renewables.
Reaching Net Zero emission means reducing fossil fuel use, but gas-burn is still forecast rise through 2040 – amid a lack of alternatives. The phase-out of coal and nuclear power in Germany requires gas generation to change from providing baseload to backup power and meeting residual loads.
India’s spike in Covid19 cases has made utility buyers sell LNG cargoes heading to the country as energy demand dropped amid calls for another nationwide lockdown. Six to seven LNG cargoes are already diverted, Kpler ship tracking data shows, and four tankers switched to floating storage.
MHI Compressor International (MCO-I) will deliver and install four compressors and two steam turbines in the second quarter of 2022 to help expand Koch Fertilizer’s ammonia production facility in Fort Dodge, Iowa. Koch freed up $140 million to modernise its Fort Dodge plant and boost ammonia production capacity by 85,000 tons per year.
Germany’s coalition government has approved a ‘climate pact’ that allocates up to €8 billion to finance initiatives from 2022. Urgent action is required in energy, industry and transport as Chancellor Angela Merkel vowed Germany will reach Net Zero emissions five years earlier than planned in 2045. The steel, chemicals and cement industry has come under intense scrutiny.
Rolls-Royce has installed and commissioned eight MTU emergency generator sets with 9.2 MWe power output at a major bank near Madrid. The four MTU 4000 DS1650 and four 2000 DS1100 units ensure continuous electricity supply to the bank’s data centre should the public power grid fail.
Pipe-laying works for Nord Stream-2 continue until the end of September for the final stretch from Bornholm Island up to the German border. The Danish maritime authority confirmed works are being carried out by the Russian-flagged Akademik Cherskiy pipe-laying vessel and fellow ship Fortuna. Sea-trials will follow to scrutinize the pipeline before start-up.