Daily News

Poweo, an independent French power and gas company, today posted a net loss of €63.4 million in 2011, incurred primarily by losses in its power generation business. Revenue from power generation revenue dropped from €185 million in 2010 to €124 million last year due to unfavourable profit margins at its CCGT power plant at Pont-sur-Sambre (412 MW).

Natural gas consumption in India and China has witnessed annual growth rates of 14% and 18%, respectively, over the last five years. Inaugurating the 7th Asia Gas Partnership Summit, in New Delhi today, India's Prime Minister, Dr. Manmohan Singh highlighted the role of gas as "an efficient fuel for power generation".

Operators of gas-fired plants should be allowed to resell natural gas hubs back to virtual trading hubs as a way of offering demand-side responses on balancing platforms, Eurelectric said in a gas strategy paper today.

Mitsubishi Heavy Industries (MHI) has received orders for ten M501J gas turbines for installation at four power plants in South Korea. The order from South Korea marks the first for the J-Series gas turbine from overseas, MHI said today.

The board of directors of Poweo, a French independent power distributor, and its peer Poweo have approved a merger, the two companies announced late Wednesday.

Electricity prices in Turkey have surged as markets are concerned about a looming reduction in Russian gas supply as well as bottlenecks in the country's gas transmission infrastructure, energy traders told ‘Gas-to-Power Journal’.

Tata Power has emerged as India's largest private sector power generating company as the start-up of the second unit (525 MW) of its Maithon Mega Power Project in Dhanbad lifts the company's overall power generation to 5,297 MW.

E.ON, the world’s largest utility by sales, is not planning to mothball any of its gas-fired power plants in Germany, despite the negative impact of oil-indexed gas purchase on the economics of operating power plants, a spokesman said today.

International Power proposes to close the 210 MW Shotton Combined Heat & Power (CHP) plant by the end of 2012. The 210 MW plant is no longer competitive in the U.K. wholesale electricity market, the operator said today.

Austria’s Verbund is going ahead with works to start-up the proposed 412 MW Toul gas-to-power plant as planned in 2013, despite loss-making operations at the Poweo’s Pont-sur-Sambre combined cycle gas turbine plant (CCGT). “The Toul CCGT does not have a gas contract with Eni,” Verbund spokeswoman Ines Schurin told ‘Gas-to-Power Journal’, implying operations of the Toul plant are expected to be profitable.

Mitsubishi Heavy Industries (MHI) announced today it has won an order from Virginia Electric and Power Company (VEPCO) to supply three M501GAC gas turbines and one steam turbine for VEPCO's Brunswick County Power Station, located some 60 miles south of Richmond, Virginia, U.S.

Electricity generated from gas still has an important role to play over the coming decades as the U.K. transitions to a low carbon economy, Energy and Climate Secretary, Edward Davey, said. "We can't take our foot off the gas for some time yet," he said with reference to the closure of a fifth of the UK's ageing fleet of power stations this decade.

Karachi Electric Supply Company (KESC), the sole vertically integrated utility in Pakistan, has failed to restart operations at its Bin Qasim Power Plant II due to a lack in gas supply for the plant. Operational start of the plant depends on Sui Southern Gas Company (SSGC) supplying an additional 130 million cubic feet per day (Mmcf/day) to the plant.

French investment bank BNP Paribas sees "little hope" that the U.S. gas industry will sell more gas to electric utilities during the upcoming peak summer month based on increased cooling requirements.

Demand for natural gas in the EU will reach pre-crisis levels only by 2018, the French investment bank Société Générale said in a recent report.

News in Brief

German economy minister defends Nord Stream-2

May 24 – Peter Altmaier, the Germany economy minister, has defended construction of the Nord Stream-2 pipeline, which Washington and many eastern European countries, would like to block. Altmaier attributed the U.S. opposition to its aspiration to boost its own shale gas exports. "They are looking for markets [for LNG], which we can understand, and they can land it here easily," he told German media, "But it is much more expensive than pipeline gas, so blocking Nord Stream-2 on its own won't guarantee exports."

NY Governor proposes coal exit by 2020

May 23 – Andrew M. Cuomo, the Governor of New York, has proposed new regulation that would establish emission limits strict enough to effectively end the use of coal for power generation by 2020. The proposal is now up for public comment, with three hearings on the matter scheduled in July.

Middletown Energy Center onstream

May 22 – Mitsubishi Hitachi Power Systems (MHPS) Americas has helped NTE Energy with the commissioning and start-up of Middletown Energy Center which has been running successfully for 24 hours. With an installed capacity of 525 MW, the plant is being powered by MHPS M501GAC gas turbine equipment in a combine-cycle alignment. First fire of the turbine was in January 2018.

Dominion invests in development of new SMR design

May 22 – Dominion Energy has agreed to provide funding to help progress the BWRX-300, a 300 MWe small modular reactor design under development by GE Hitachi Nuclear Energy (GEH). Dominion’s funding of the BWRX-300 provides “seed money” to advance work that could lead to commercializing this technology, although the utility said it currently has no plan to build a commercial nuclear power station.

Entergy to buy peaking unit near Washington

May 21 – Louisiana regulators have approved plans by Entergy to buy a 361-MW gas peaking power unit to be built in Washington Parish. The Washington Parish Entergy Center will be constructed by a Calpine subsidiary on a brownfield site. Entergy said it anticipates the for $261 million transaction will close in Q2-2021.

Ivory Coast nears CCGT finance deal

May 18 – The government of the Ivory Coast is reported to be close to completing a $530 million project finance deal with Eranove of France that will allow for construction start at a thermal power plant project. Though the concrete project has not been named yet, Siemens confirmed it is in negotiations about about combined-cycle power projects in Ivory Coast.

Delta-ee summit returns to Berlin

May 17 – Delta-ee’s European Heat Summit 2018 will return to Berlin this June. The event will begin with two concurrent roundtables, focussing on Electrification of Heat or Micro-CHP and High Efficiency Gas Heating.

Turboden ORC technology stands out in waste heat recovery

May 16 – Innovative solutions at Turboden’s Organic Racine Cycle (ORC) systems boost the energy efficiency such as the direct heat exchange system and the heat recovery through pressurized water circuit. In waterless conditions, ORC is said to be more efficient and cost-competitive than to steam technology. Large cement groups as well as power generators have recently chosen Turboden ORC technology such as Turkey’s CTP Team, the Swiss Lafarge Holcim group or Cementi Rossi in Italy.

Chile: AES to sell four gas plants to EDF

May 15 – AES Gener has announced the sale of four of its operating power plants, with a total capacity of 750MW, in Chile to Generadora Metropolitana, a joint venture between EDF Energy and Andes Mining & Energy (AME) for $300 million. The four power plants that are part of the sale are the 379MW Nueva Renca CCGT and the three peaking power plants – 132MW Los Vientos, 139MW Santa Lidia and 100MW Renca.

Florida PSC approves 1.7GW of gas power capacity

May 14 – The Florida Public Service Commission has given the green light for the development of two gas plants, totalling nearly 1.7 GW combined. The first is Seminole Electric’s 1,122 MW facility in Putnam County, due operational in December 2022; a second 573 MW project in Paso County will be realized by Seminole Electric together with Shady Hills Energy Center by December 2021.

FirstEnergy completes 138-kV line across Ohio in May

May 11 – A subsidiary of FirstEnergy is gearing up to energize a new 138-kilovolt transmission line and substation later this month to enhance service reliability for Ohio Edison and Toledo Edison customers across northern Ohio. Line construction began late last year and FirstEnergy said the new facilities are “on schedule to be energized ahead of a May 31 in-service deadline.”

Marubeni, BMCE Bank to jointly develop project in Morocco

May 10 – Japan’s Marubeni Corp has signed a memorandum of understanding with BMCE Bank for Africa to jointly develop new business opportunities in Morocco. Marubeni has designated its Casablanca office as a regional strategic base for West Africa and since achieved CFC status, a special legal status designed to support the development of the Casablanca city as a financial hub.

Capstone wins 9-year FPP service contract

May 9 – A New York-based food retailer has handed a nine-year Factory Protection Plan (FPP) service contract for a 650,000 square foot warehouse and shipping centre to Capstone Turbine Corp. Located in the Bronx, the warehouse is powered by a C1000 microturbine installed in a combined heat and power (CHP) configuration that provides baseload power and hot water for the facility 8,760 hours per year. Additionally, the microturbine can also provide about 700 kW of backup power in the event of a utility outage.

Loan for CHP in Argentina

May 8 – Albanesi Energía and its subsidiary Generación Centro have secured a $395 million loan for the construction of de la Arroyo Seco cogeneration power plant and to refinance the development of Timbúes’ project. UBS, BACS, Banco Hipotecario, Banco de Inversión y Comercio Exterior and Credit Suisse acted as lenders. In Argentina, Albanesi Group operates power plants with an installed capacity of approximately 887 MW.

California abandons hybrid power project

May 4 – After a decade of trying to realise a hybrid power plant that would bring together natural gas and solar energy, the California Energy Commission has abandoned attempts to build the Victorville-2 Hybrid Power Project (563 MW). No development partner had been found, and the city lost $50 million after failing to make timely payment to GE for the plant’s gas turbines.

TVA’s Allen CCGT ready to run

May 3 – Tennessee Valley Authority’s (TVA) new 1,000 MW Allen combined-cycle gas power plant in Memphis has been completed and is ready to operate. The CCGT came at a cost of $900 million and replaces a 58-year old coal-fired power unit.

Mott MacDonald supports works on FRSU in Brazil

May 2 – Golar has selected Mott MacDonald to provide environmental support during the installation of a floating storage and regasification unit (FSRU) in Babitonga Bay, in the Brazilian state of Santa Catarina. Capable of distributing 15 million cubic metres of natural gas per day, the FSRU is due to become operational in early 2021.