Daily News

Investors in new cogeneration plants in Spain eagerly await the introduction of a new support mechanism.

“An extension of the cogeneration tariff could prompt new investments worth up to €2,000 million for about 5,000 MW of new capacity by 2015,” Jose Luis Garcia, associate partner at Energia Local forecasts.

Profitability of combined cycle power plants (CCGTs) in Spain is likely to deteriorate further on rising electricity supply from solar PV and wind power generation. “We may not have reached the bottom yet. No investment in new CCGTs is likely in the next 10 to 15 years,” James Cox, Principal Consultant, Poery Energy Consulting, said at the ‘Gas to Power conference’ in Valencia today.

The share of LNG re-exports from Spain has risen to a record 30% of import volumes in 2012 as shippers divert cargoes contracted on flexible terms to profit from high gas prices in Asia, lga Vedernikova, LNG Divisions Director at Clarksons said today. Spain gas demand is forecast to remain on low levels, leaving regas capacity underutilized.

 The volatility of natural gas demand in Spain is set to rise as the integration of electricity and gas market intensifies, Maria Teresa Bravo, responsible of European gas infrastructure development at Enagas said today. "Natural gas is as a facilitator for Spain's rising renewable energy production, therefore gas infrastructure needs provide sufficient flexibility for gas to play that role, she said at the LNG & Gas-to-Power conference in Valencia.

Operating profit of Statkraft, Norway's largest utility, eased off slightly in the first quarter as the negative impact of lower power prices was offset by higher electricity production.

Japan's hunger for LNG imports to fuel gas-fired power plants is set to ease off gradually as a regional government approves the restart of nuclear reactors. Global LNG markets, however, are forecast to stay tight, investment bank JP Morgan forecasts.

German engineering conglomerate Siemens has started a second project on carbon capture and storage (CCS) with the Masdar Institute. The R&D projects focus on improvement and adaptation of proprietary Siemens Post-Combustion technology to CO2 capture at gas fired power stations, the Erlangen-based company said.

 Russia's energy minister Anatoly Yanovsky has backed efforts of Gazprom to go downstream by buying gas-fired power generation assets in Western Europe.

Bharat Heavy Electricals Ltd (BHEL), an integrated power plant equipment manufacturer, has bagged a Rs.3800 million (US$70.43 million) contract for setting up a 160 MW Combined Cycle Power Plant (CCPP) in Rajasthan.

E.ON has not decided on whether to close three gas-fired power plants with a combined capacity of 1,420 MW in southern Germany. "We have not taken a formal decision on whether to close these or other gas-fired plants but we in the process of evaluation the profitability of each plant," an E.ON spokesman said today, dismissing contrary news reports.

Wärtsilä, supplier of flexible and efficient power plant solutions, has signed an Operations & Maintenance (O&M) agreement with South Africa's Sasol New Energy Holdings. The three-year agreement covers Sasol's gas engine power plant project in Sasolburg, South Africa.

Franco-Belgian utility GDF Suez has sold a 40% stake in Bahrain's Al Hidd power and water plant to Malakoff, Malaysia's largest independent power producer for US$113.4 million (€87.6 million). The divestment was made to fulfil a Bahraini regulatory requirement.

Drax Power Station is a month away from completing a £100 million upgrade programme to modernize the steam turbines. Upon completion, Drax and Siemens will have replaced the low pressure and high pressure turbines on all six units at the power station.

Investment bank Societe Generale anticipates a drop in traded prices for natural gas in the U.S.  due to lower demand. The NYMEX front month is forecast to drop to US$2/MMBtu, with falling gas prices set to increase the share of gas-fired power generation in the U.S. energy mix.

Alstom, the French manufacturer of power generation technology, is ramping up manufacturing capacity and output at its Chattanooga facility in Tennessee, with a view to boosting its share in the buoyant U.S. market.

"Our investment in Chattanooga is a reflection of our confidence in the U.S. market," Patrick Fetzer, Regional Vice President of Alstom's gas power plant business in North America said with reference to forecasts about "a substantial short-term grow of the country's gas-fired power generation sector.

News in Brief

China eases ban on coal power

April 23 – The Chinese National Energy Administration (NEA) has allowed 11 provinces to resume building coal power plants in a move that lies bare the country’s dependency on thermal coal even after several hundred billion dollars were invested cleaner energy sources, notable wind, solar and natural gas. Areas earmarked by NEA for new coal power plants include Qinghai, Chongqing, Guangxi, Guangdong, Yunnan, Guizhou and Henan.

$500m Birdsboro plant gets powered up

April 17 – Birdsboro Power, a subsidiary of EmberClear of Canada, is in the process of commissioning the $500 million Birdsboro open-cycle gas power plant. Built on a site of the former Amourcast steel foundry, and driven by a GE 7H02 turbine, the new power unit will generate about $500,000 in revenue for the Reading Area Water Authority and another $125,000 city of Reading, Pennsylvania. All electricity will be supplied into PJM Interconnection, the power grid operator in the U.S. Northeast.

Gas now dominant fossil fuel in Europe

April 17 – Rising cost of carbon emissions and closures of coal power stations throughout Europe have led to gas-fired generation overtaking the output of other fossil fuels for the first time. According to EnAppSys figures, gas power plants in the EU produced 117 TWh of electricity in the first quarter of 2019, compared with a combined 110.9 TWh from coal, lignite and gas-to-coal plants.

ABB, Porsche co-develop electric vehicle chargers

April 16 – ABB and Porsche have agreed to develop electric vehicle chargers for Porsche Japan’s new electric vehicles, including Tayan – the carmakers’ first fully electric car due to be launched in 2020. Under the deal, Porsche will install ABB chargers at its public facilities across Japan, creating a network of fast-charging stations for its electric vehicles. The first installation is set to go live in mid-2020.

Power gen from biomass flatlines

April 15 – Increases of U.S. electricity generation from biomass have stopped after a decade of growth. Power produced from biomass totaled 70.6 million megawatthours (MWh) in 2018, or about 2% of total U.S. electricity generation, according to EIA figures. Having grown from 2004 through 2014, and the 2018 output was 2% below its peak generation of 71.7 million MWh.

Aeroderivative GT market to top $3.5bn by 2024

April 12 – The global market for aeroderivative gas turbines is seen grow at a 7% rate to surpass $3.5 billion by 2024. A main growth driver, according to Global Markets Insight, will be the rising adoption of small-scale turbine-driven cogeneration plant and the trend towards decentralized energy supply.

Lumenaza creates regional green power grids

April 11 – Utility-in-a-box software, developed by Lumenaza, creates a regional green power grid by connecting producers and consumers of locally produced wind and solar energy. The system monitors renewable power output, balances supply and demand, and can help organize the billing process. Pilot projects have been implemented with two of Germany’s big utilities, E.ON and EnBW as well as with various smaller players.

MHPS licenses H-25 turbine production to Chinese manufacturer

April 10 – Mitsubishi Hitachi Power Systems (MHPS) has agreed to license production technology for its H-25 series gas turbines to the Chinese manufacturer CSIC Longjiang GH Gas Turbine Co. The agreement will establish a small local supply chain which helps expands MHPS’ share in the Chinese market, the Japan-based company stated. So far, MHPS received five orders for H-25 Series gas turbines, or nine units in total, from Chinese power plant developers.

SIEW 2019 to focus on energy transformation

April 9 – “Accelerating Energy Transformation” will be the theme for the Singapore International Energy Week (SIEW) 2019. This theme has been chosen by the Energy Market Authority (EMA) of Singapore to address mounting challenges in Asia over meeting climate change commitments against a backdrop of continuously rising energy demand.

ENGIE launches 1st mini-grid in Zambia

April 8 – The French utility ENGIE has inaugurated its first PowerCorner – an off-grid renewable energy solution – in the Zambian village of Chitandika. Located in the East of Zambia, Chitandika counts 1500 inhabitants who previously had no access to electricity.

Global gas engine market to reach $4.4 billion by 2020

April 5 – Over the next five years, the global gas turbine market is forecast to grow 11.1% annually in terms of revenue, reaching a market size of $24,100 million by 2024, up from $14,300 million in 2019. Market-leading companies include: GE, Siemens, Ansaldo Energia, MAN Energy Solutions, Mitsubishi Hitachi Power Systems and Shanghai Electric Group.

EDAC, Siemens seek ‘industrial app’ for 3D-printing

April 4 – Siemens is intensifying its cooperation with the EDAG Group, an independent engineering company for the automotive industry, to promote industrial applications of additive manufacturing (AM), also known as 3D printing. The companies’ joint "NextGenerationSpaceframe 2.0" project is on show at the Hannover Messe this week.

ABB electrifies Lodi campus of Milan University

April 3 – The Swiss manufacturer ABB will ensure smarter, safer and more reliable electricity supply for students at the Milan University’s new campus in Lodi. Covering an area of 20,000 square meters, the campus has installed ABB’s UniSec switchgear and main distribution switchboard solution, System pro E power.

Chevron launches $90m Fund VII

April 2 – Chevron Technology Ventures (CTV) has set up Fund VII, a new $90 million fund focused on venture capital investment across the energy industry. Investments target early- to mid-stage companies as well as limited partnership funds with the aim of supporting breakthrough technologies that have the potential to improve Chevron’s oil and gas business performance.

Siemens to implement VW Industrial Cloud

April 1 – The German carmaker Volkswagen has chosen Siemens as integration partner for the VW Industrial Cloud. Based on Siemens’ MindSphere system, the VW Industrial Cloud will link production systems, machinery and equipment of various manufacturers at the 122 Volkswagen manufacturing plants worldwide. The resulting data transparency and analysis is meant to enhance productivity at the sites.

Marubeni, 4R Energy to deploy large refurbished batteries

March 29 – Marubeni Corp and 4R Energy, along with SIGNET EV have achieved a Proof of Concept (PoC) using 4RE’slarge refurbished batteries for the development of the world’s first mass-productional EV charger in Namie-machi, Fukushima-Prefecture. The installation, with an output of more than 50kW, helps the community reduce electricity demand from the central power grid, which saves costs.

Regulators approve £300m Belfast power project

March 28 – Northern Ireland’s Department for Infrastructure (DfI) has approved plans for a £300 million gas-fired power project in Belfast. The 480 MW power station, developed by Belfast Power Holdings, will be situated in the city's Harbour Estate and provide energy to about 500,000 homes and businesses.