Daily News

A combination of flexible combined cycle gas turbines (CCGT) and Shallow Salt storage is "best placed" to balance electricity supply and demand in the U.K. amid a rise of intermittent renewable energy production, John Baldwin, managing director, CNG Services Ltd told Gas-to-Power Journal today.

American Electric Power (AEP) has started commercial operation of the 580 MW combined-cycle gas power plant in Dresden, near Ohio, U.S. The operational start-up of the Dresden plant is "another step in the transformation of AEP's generating fleet", said Nicholas K. Akins, AEP president and CEO.

GE Energy plans to complete works to upgrade two 30-year-old 9B Gas Turbines at an Italian power plant in Trapani to GE 9E Gas Turbines in 2013, the company's Italian division told Gas-to-Power Journal today.

Renewable gas – in the form of biogas, syngas or hydrogen – will cover a growing share of Denmark's gas demand. "By 2020, we expect to have about 5% of biogas in the Danish gas system," Nybroe, senior project manager, Energinet.dk told Gas-to-Power Journal at the sidelines of a conference in London today.

Utilities in Europe currently have access to a lot of natural gas, but it is cheaper for them to use their coal-fired plants for generating electricity, Albrecht Müller von Blumencron, director project finance Bayern LB said today. Nonetheless, he foresees a "brighter future" for the gas-to-power sector in Europe in the mid-term, provided utilities will have to more flexible gas supply.

The U.K. will face a capacity gap at the end of this decade. Investors in new flexible gas-fired power generation capacity will have to find a way to handle the risks posed by ambitious renewable targets and uncertainties surrounding the implications of the Energy Market Reform, Clare Duffy, General Manager, ESB International, said in London today.

Uncertainty about the liberalization process of the Turkish natural gas market may hamper investors to commit to realizing large gas-fired power plant projects in Turkey, Robert Selim Hill, researcher at Energy Brainpool said today. "For the near future it will especially be difficult to plan and realize large natural gas power plant projects," he told Gas-to-Power Journal.

TLT-Bancock India said today it will open a new manufacturing facility near Bangalore, in April 2012. The components produced at the facility will be sold to power producers in the growing Indian market. "When production begins in a few months, TLT-Babcock will have fully arrived in support of India's electric power expansion and general growth plans," David Klossner, President of TLT-Babcock said.

China will increasingly favour of environmentally friendly gas-to-power plants over coal-fired plants. In 2050, China's gas demand to power sector is forecast to surge to 413 Mtoe (BLUE Map scenario), compared to 195 Mtoe (Baseline scenario), Hirohisa Yamada, IEA energy analyst, told Gas-to-Power Journal in an interview today.

Cold weather conditions across Europe will prolong the recent rally for gas and power demand, but still weak fundamentals may mitigate its impact on prices, Societe Generale forecasts. Recent macro data and sentiment surveys conducted in January "all surprise to the upside", it added.

The European Investment Bank (EIB) is supporting a 216 MW gas-fired power plant project in Cameroon with 29.5 million euro in long-term funding. Kribi will be the first gas-to-power plant in Cameroon.

Fortum, a Finland utility with power generation assets in the Nordic and Baltic countries, Poland and Russia, is at the brink of commissioning a biomass-fired Combined Heat and Power (CHP) plant in Järvenpää in early 2013. The proposed 130 GWh plant will run on biomass as a replacement for natural gas.

Deutsche Bank has issued a bullish estimate on a continued increase in gas-coal substitution in the U.S. The current situation in the markets is "unchartered territory", it said in a report today.

Wartsila, the Finnish producer of lifecycle power solutions for the marine and energy markets, today posted a 15% decrease in net sales to EUR 1,238 million, down from EUR 1,462 in the previous quarter, mainly due to a backlog in power plant deliveries. "After a very strong fourth quarter, we managed to fulfill our order intake target and reached 11.1% profitability. Due mainly to delayed power plant deliveries, our net sales decreased slightly more than expected," Wartsila's president and CEO, Bjorn Rosengren said.

The Department of Energy and Climate Change (Decc) has reported the "largest ever three-month gas demand fall" in the UK fir the three months ending November 2011, with gas demand plunging by 19.1% to around 188 TW.

News in Brief

MHPS flue gas desulfurization for Balkan generator

May 26 - Mitsubishi Hitachi Power Systems (MHPS) has signed a supply contract for the first Flue Gas Desulfurization (FGD) system in the West Balkans for Ugljevik power plant, located in the Republic of Srpska – one of the two constituent entities of Bosnia and Herzegovina. The FDG project at the Ugljevik plant was advanced via a Japanese ODA loan, and aims to reduce sulfur dioxide and particulates emissions with a view of helping Bosnia and Herzegovina meet the environmental standards required for joining the European Union. The upgraded power plant is scheduled to start commercial operations in July 2019.

Bioenergy market keeps growing

May 26 – Global markets for bio fuels and clean energy is forecast to show steady growth - despite a small dip in capacity additions. Classified as a niche market within the renewable energy sector, the biopower segment set to expand to 165.2GW by 2025, up from just over 106GW installed capacity two years ago. GlobalData analysts attribute this growth to a rising global energy demand, and growing awareness about climate change that spur investment in cleaner sources of energy around the globe.

ABB enhances power supply for Canadian data centre

May 25 – Zurich-headquartered ABB will supply an integrated substation to the Canadian IT solutions provider Hypertec to support the expansion of one of its existing data center. As part of the upgrade, the existing 25 kilovolts (kV) power supply will be enhanced to 120kV to meet growing electricity demand. The turnkey project includes the design, supply, installation and commissioning of the 120kV Gas Insulated Switchgear (GIS) substation with 25kV distribution. ABB said the project is expected to be completed by the end of 2017.

German gas, coal-burn up in Q1

May 24 – Germany’s total primary energy consumption dropped 1.4% yoy in the first quarter of 2017. But despite lower demand for electricity, the use of natural gas for power generation increased by 1%, while use of hard coal and lignite were 2.6% and 0.4% higher respectively, according to figures by the energy industry think tank AG Energiebilanzen (AGEB).

Siemens wins 3D printing award

May 24 – An award in category "3D Printing application of the year" was given to Siemens for the worldwide first successful test of gas turbine blades manufactured with Additive Manufacturing. At the start of 2017, a multi-location Siemens team successfully tested the performance of the first gas turbine blade, produced through AM, under full-load conditions

Wolf Power, Myriad start CHP cooperation

May 23 – Wolf Group, a German supplier of combined heat and power systems, has entered a cooperation with Myriad Power Products, an equipment supplier based in Leicestershire, UK. Myriad can supply chip, pellet and gas heat only/ CHP systems from 10kW to 10MW; it is about to bid for public sector contracts in the UK and some other smaller clients.

Verisk acquires MAKE

May 23 – Verisk Analytics, part of Wood Mackenzie, has announced its latest acquisition of MAKE, an advisory that specializes in wind power. This latest acquisition follows WoodMac’s takeover of Greentech Media in July 2016.

OPEC’s net oil revenues on 12-year low

May ‎22 – Members of the Organization of the Petroleum Exporting Countries (OPEC) net oil revenues have plunged to $433 billion in 2016, the lowest since 2004. In real dollar terms, the 2016 revenue represents a 15% decline from the $509 billion earned in 2015. The EIA projects that OPEC’s 2017 net oil export revenues will rise to about $539 billion dollars (nominal), based on a slight recovery in average crude oil prices, as well as higher OPEC output during the current year.

Burckhardt to help modernize MOL petchem plant in Hungary

May 19 – Burckhardt Compression has won an order to modernize MOL Petrochemicals’ third-party Hyper Compressor at its LDPE plant in Tiszaújváros, Hungary, that has been operating since 1991. Burckhardt Compression is well-known for its Hyper Compressors and the MOL Group already has positive experiences working with the Swiss manufacturer at another LDPE site. The project scope includes the Burckhardt Hypropack cartridge system, plungers and central valves for two second-stage cylinders.

Pumps, motor market to top $100bn by 2021

May 19 – Upgrades of ageing power infrastructure, a rise in renewable energy investment and a progressing urbanisation is driving the markets for pumps and motors to reach $100.66 billion by 2021, up from 71.01 billion last year. According to MarketsandMarkets, growth of notably the market for ‘permanent magnet synchronous motors’ is spurred by power plant modernization, as well as demand for energy-efficient motors and use of low-cost ferrite permanent magnets.

MHPS opens new Warsaw office

May 18 - Mitsubishi Hitachi Power Systems (MHPS) is opening a new office in Warsaw, to strengthen its relationships with local customers and bolster orders for advanced coal power generation systems and Air Quality Control Systems (AQCS). The new branch office centralizes MHPS' corporate and business development function for Poland in one single location.

Low utilisation of US oil peaking plants

May 18 – Monthly generation from petroleum-fired generators has totalled 1 million to 2 million MWh in recent years, according to EIA figures. Most of the 36.4GW installed oil-fired generators in the United States, either turbines or internal combustion engines, only supply peak-load electricity. Capacity factors for oil-fired steam turbines are about 10% and approach 20% only in the summer months. Capacity factors for oil-fired combustion turbines and internal combustion engines are lower, remaining well below 5%.

Wärtsilä wins 5-year O&M deal in Pakistan

May 17 – Helsinki-based technology group Wärtsilä has signed a 5-year full operations and maintenance (O&M) agreement with Pakistan’s Technomen Kinetics Private Ltd (TKL) for two of the latter’s gas-fired power plants. Wärtsilä’s installed base in Pakistan totals around 2.2 GW power generating capacity, with 600 MW of power output under service agreements.

MAN helps CNOOC tap offshore gas in South China Sea

May 17 – CNOOC China’s branch in Zhanjiang, a city in south-western Guangdong province, has commissioned MAN Diesel & Turbo to supply six compressor trains for the Dongfang 13-2 gas field development project. Manufactured by in Switzerland by MAN, the compressor trains will be used for gas reinjection at new platforms in the Dongfang field, located in the Yinggehai Basin of the South China Sea.

New man at the helm of COGEN Europe

May 16 – COGEN Europe has appointed Hans Korteweg as new managing director. His leadership starts at a time of ongoing debate about the EU’s Clean Energy Package, aimed at ensuring a safe and cost-effective energy transition.

Wärtsilä snaps up Greensmith

May 16 – Wärtsila has agreed to buy Greensmith Energy Management System, an US energy storage technology provider, for an undisclosed amount. The acquisition of Greensmith is still subject to US regulatory approvals; it will allow Wärtsilä to expand its latest focus on energy storage. The Finish turbine manufacturer stated it expects the takeover to take legal effect no later than July 2017.

Dresser-Rand supplies compressor trains for Thai pipeline

May 15 – Dresser-Rand, part of Siemens Power and Gas, will supply three SGT-400 gas turbine-driven turbocompressor trains for Thailand’s Wang Noi compressor station, located 70 kilometers from Bangkok. The station is currently being built by Samsung Engineering; it is owned by PTT Public Company, Thailand’s state oil & gas company. The compressor station project is expected to be completed in 2018; it will enhance the capacity of the Ratchaburi - Wang Noi pipeline to meet the increasing natural gas demands of nearby power plants.