Daily News

South Korea's Doosan Heavy Industries & Construction is focusing on new business for its power plant section in growth markets such as India and the Middle East, shifting its focus away from its South Korean home market. "India has become the biggest growth market for us, followed by Vietnam and Indonesia," Doosan spokesman Gang Cheol SEO told 'Gas-to-Power Journal'.

The Indian government is not paying enough attention to smaller gas-based plants to cater for peak load demand as it focusses on large-scale coal-fired plants that provide base load capacity. Rakesh Sarin, Managing Director of Wartsila India stressed that building up a flexible, reserve capacity of at least 20 to 25 GW, preferably based on gas generation, would be ideal for supplying peaking capacity.

Dutch energy company Nuon's said it has connected its new 435-MW gas-fired Diemens-34 power plant to the Dutch power transmission network, as the starting point for further testing and optimisation before the plant will start full commercial operations by the end of the year.

Alstom has developed a MXL2 upgrade for GT26 gas turbines, offering power plant operators to adapt production hours of their plants to fluctuating demand – a key feature in markets with a large share of intermittent wind generation such as Spain.

InterGen, a global power producer with a total installed capacity of 7,686 MW worldwide, has applied for generation licences in the UK for 1,800 MW of new gas-fired capacity, the British industry regulator Ofgem said on Monday.

Global gas and coal markets will be in a slight surplus for the remainder of the year and in 2013 as subdued demand is outweighed by ample supplies; however by 2014 gas markets are forecast to tighten, Barclays Capital said in its Global Energy Outlook.

Deutsche Bank analysts expect Japan's total thermal power generation requirement to rise to 90 GW in December 2012, provided that no further nuclear reactors will be restarted and overall demand pattern are consistent with the previous year. "This forecast implies that thermal power requirement will be 5 GW to 8 GW higher in January and February 2013 than it was this past winter," analysts Isabelle Curien and Mark Lewis said in an emailed report today.

Siemens Infrastructure & Cities announced it has bought Australia's Kaon Holdings Pty Ltd,  effective as of August 31, 2012, with the aim of expanding its share of the global market in energy distribution solutions for overhead power lines. Siemens said it will "take over and continue to sell all of Kaon's existing products" and establish a centre of competence in Australia for medium-voltage products.

Alstom and Toshiba said today they have signed a Memorandum of Understanding (MoU) to establish complementary partnership in the smart grid business with the aim of developing systems that support wide scale integration of renewable energy sources into the grid and help to bring down the cost of power generation.

Wood Group GTS has secured a $10 million contract with Pasadena Water & Power (PWP) for repair and restoration of the GT-1 generating unit at their Glenarm Power Plant in Pasadena, California.

Despite most of the oil and gas production in the Gulf of Mexico being shut down following the landfall of Hurricane Issac, natural gas market in the US barely reacted. The abundance of shale gas supply has reduced the significant of offshore production, analysts say.

GE has been commissioned to install two of its aeroderivative gas turbines at a combined heat and power plant (CHP-1) in Yuzhno-Sakhalinsk, owned by OJSC (RAO Energy System of East). The total project cost is 3.3 billion rubles ($ 0.101 billion), GE said.

India's power ministry and the eight north Indian states, which were affected by prolonged blackouts after the collapse of the power grid on 30 and 31 July, have agreed on a 12-point resolution to avoid a similar crisis. "The Centre and the concerned states agreed to abide by a 12-point resolution to ensure that such breakdowns in the power grid do not recur," the ministry said in a statement.

Starting from 2013, E.on Russia will source its entire gas supply for its power plant fleet from Russia's second largest gas supplier Novatek instead of Gazprom. Under a $22 billion agreement, Novatek will supply gas to E.on Russia's plants at Smolensk, Surgutsk, Shatursk and Yaivinsk until 2027.

Alstom Poland has signed a contract worth close to €4 million (PLN 16 million) for the modernisation of a UK-50 type steam turbine at the Siekierki combined heat and power (CHP) plant, owned by PGNiG Termika SA, a subsidiary of state-controlled PGNiG. The retrofit is scheduled to be completed by September 2013.

News in Brief

Tohoku Electric tenders for LNG cargo

Aug 19 – Tohoku Electric Power, the fourth-largest electric utility in Japan in terms of revenue behind Tepco, Kepco and Chubu, is understood to be seeking an LNG cargo for delivery in September. A tender process is ongoing.

Cost for decarbonizing industry tops $21tr

Aug 16 – Total costs to fully decarbonize the four most polluting industries – cement, steel, ammonia and ethylene – are estimated to amount to $21 trillion between today and 2050. McKinsey said this could be lowered to about $11 trillion if zero-carbon electricity prices come down further compared to fossil fuel prices. In this event, industry could switch to using electricity for heating processes.

Co-firing Braskem plant with hydrogen

Aug 15 – Siemens is making fossil energy greener at the Braskem onsite power plant in Brazil. In this modernization project two SGT-600 gas turbines are co-fired up to 60% with hydrogen, enhancing efficiency for the production process of the adjacent the petrochemical complex.

Canada's CO2 tax to hit CCGTs

Aug 5 – Change in Canada’s carbon emissions tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could significantly lower the profitability of gas generation and could prompt SaskPower reconsider its planned Moose Jaw gas power station.

GE CFO steps down

Aug 2 – Jamie S. Miller, General Electric’s chief financial officer, has decided to quit after two years in the job and 11 years with the company. Having overseen GE’s fiscal activities during a period of intense restructuring, Miller will remain in office while the GE board is looking for a successor.

Siemens HR boss quits

Aug 1 – Janina Kugel, Siemens chief HR officer, is leaving the company amid an apparently scattered working relationship and stark personal differences with CEO Joe Kaeser. Her contract will expire by mutual agreement on January 31, 2020.

ABB standardizes eBus chargers

July 31 – Zurich-based ABB, a member of the ASSURED consortium, is working on standardizing the specifications for automatic charging of heavy vehicles. The aim is to drive down the total cost of ownership for electric fleet operators, helping increase adoption of eBuses and eTrucks. Conformance and interoperability tests will be carried out in Q4-2019.

U.S. Senate helps fund EV charging stations

July 30 – The need for expanded electric vehicle charging infrastructure is greater than expected given that there had been over 1.75 million electric vehicles (EV) in North America at the end of 2018, a nearly 60% increase from the previous year. To help fund additional charging stations, among other things, the U.S. Senate approved the $287 billion America’s Transportation Infrastructure Act (ATIA).

PNOC, Lloyds to develop merchant LNG-to-Power projects

July 29 – Philippine National Oil Co. (PNOC) has signed a Memorandum of Understanding (MoU) with Lloyds Energy to develop a 1,200 MW LNG-fuelled power plant in partnership with Mitsubishi. Dubai-based Lloyds Energy is looking at ways to develop integrated LNG import facilities and gas power plants on a merchant basis in Bataan and Batangas provinces.

Macquarie finances CCGT in Mexico

July 26 – Macquarie Capital has chosen Credit Agricole, Natixis and SMBC to co-finance a $380 million combined-cycle gas power plant. The 560 MW plant is designated to be built in San Louis Potosi, a city in central Mexico.

Naturgy cashes in on gas network

July 25 – Spanish gas utility Naturgy has posted a 7% rise in core earnings for the first half of the year due to strong gains from its gas network business that helped offset falling revenues from power generation and slimmer LNG margins.

French court rejects appeal against Total CCGT

July 24 – Judges at an appeal court in Nantes have thrown out an appeal by environmentalist against Total’s planned Landivisiau combined-cycle gas power plant in Brittany. The 440 MW project, initiated by Direct Energy which was since acquired by Total, is over two years behind schedule. The French grid operator RTE has singled out the Landivisiau CCGT as “critical” in guaranteeing supply security in winter 2020/21 due to the planned shutdown of four coal power plants.

U.S. gas production falls in wake of ‘Barry’

July 23 – Shut-ins related to Hurricane Barry have scaled back U.S. gas production by 1.6 billion cubic feet per day, compared to last week, while power sector gas demand rose by just over 2.0 bcf/d. Consequently, there is significantly less gas available for storage so the injection rate has halved, according to Energy Aspects figures.

Blackout after fire at Madison substation

July 22 – Electricity is gradually being restored at Madison, Wisconsin, after 13,000 people experience a blackout following an explosion at a substation near Madison Gas & Electric’s 100 MW gas-fired Blount Generating Station. No injuries were reported.

Fuel switch could abate 1.2bn tons of CO2

July 19 – Some 1.2 billion tonnes of CO2 could be abated by switching to gas using existing infrastructure, if prices and regulation are supportive. According to the International Energy Agency (IEA), this would be enough to bring global CO2 emissions back down to where they were in 2013.

IEA launches methane tracker

July 18 – A new ‘methane tracker’, launched by the International Energy Agency (IEA), provides up-to-date estimates of current oil and gas methane emissions by drawing on the best available data. Analysts stressed methane emissions could be reduced by nearly half at no net cost.

Canada’s CO2 tax also affects gas power

July 17 – Change in Canada’s carbon tax regulation for new power plants has changed to also affect cleaner-burning, gas combined-cycle power stations starting from 2021. The move could cause SaskPower to reconsider its planned upcoming Moose Jaw gas power station.