Daily News

U.K. utility Centrica considers closing-down the 360 MW gas-fired Petersbourgh Power Station and will review future of its gas-fired Roosecote plant (229 MW). The additional closures follows Centrica's recent decision to shut down the 325 MW King's Lynn plant and were announced when the company posted its annual report today.

Alstom India has secured a € 53M (US$64M) contract for the renovation of gas turbines at NTPC's 657 MW Jhanor Gandhar Gas Power Station Stage-1 project in the western state of Gujarat. NTPC, the state-controlled operator of the plant, is India's biggest power company with a total installed capacity of 39,174 MW supplied by 29 power stations.  

Three GE 3.3-MW Jenbacher J620 cogeneration units are powering energy centers in London's Stratford City and Kings Yard areas to supply 10 MW for the London 2012 Olympic Games.

The European Commission today revealed further detail on three options for a set-aside of carbon allowances, which could lift the price of carbon by up to €6/ton, according to estimates of Thomson Reuters Point Carbon. Higher carbon prices would help lift the profit margin (spark spread) of gas-fired power plants.

South Korea's POSCO Energy has awarded Siemens an order worth 400 million euro to supply three H-class single shaft units for the 420 MW POSCO plant project.  For Siemens this is the fourth order from a South Korean buyer of H-class technology within 18 months, following orders for the Bugok III, Ansan and Andong combined cycle power plants.

Phase two of the Sabiya combined-cycle power plant (CCPP) - Kuwait's largest power plant - has started commercial operation in time to meet peak electricity demand during the hot summer months. Kuwait's power demand grows at about 7 to 10 percent per year and the government estimates peak load demand will reach 25,000 MW by 2025.

Swiss power and automation technology group ABB has won an order worth over US$ 100 million to build a gas condensate processing plant for Petroleum Development Oman (PDO) in Oman.

The spot price of natural gas at the Tennessee Gas Pipeline (TGP) Zone 4 Marcellus trading point has fallen below the spot price at Henry Hub in Louisiana. TGP Zone 4 is currently the least expensive gas traded in North America, according to EIA figures.

Wärtsilä, a leading supplier of gas engines, has signed an Operations & Maintenance (O&M) agreement with Gulf Power Ltd (GPL), to operate and maintain a power plant in Kenya.

Electricity produced from nuclear and fossil fuels in the U.S. will start to decline between 2020 and 2025, due to an expansion in renewable generation. "Natural gas represents the largest source of displaced generation," the U.S. Energy Information Administration (EIA) forecasts.

Spanish utilizes have spoken out against a proposed 4 per cent tax levy on most energy sources, claiming the taxes would erase profits.

E.on UK has refuted claims made in a parliamentary report on Monday that the introduction of Contract for Differences (CfDs) will reduce competition amongst British energy companies.

"Contrary to the Committee's view, we believe that the introduction of CfD's and a Capacity Mechanism will reduce vertical integration and increase competition in both generation and retailing," E.on UK's chief executive, Tony Cocker, said today.

The complexity of proposals to establish a Feed-in Tariff with a Contract for Difference (CfD) under the UK's draft energy bill is freezing new investment. "The proposal has now arguably become unworkable," the Common's energy and climate change select committee warned today.

The price of carbon emissions allowances is set to recover this week, Société Générale forecast, suggesting the Dec 12 EUA  contract is "very close to being oversold". As for gas, the bank sees more downside for prices all along the future curve.

Wainstones Energy, a subsidiary of Carlton Power, is evaluating suppliers as is close to purchase a flexible turbine for Carlton Power's 1,520MW gas-fired Trafford power plant project.

News in Brief

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.

MAN, Daewoo, HSD partner on engine digitalization

July 16 – MAN Energy Solutions, Daewoo Shipbuilding & Marine Engineering (DSME) and HSD Engine (HSD) have signed a strategic agreement to cooperate in the field of marine engine systems digitization. The three companies also work together on auxiliary systems and data analysis, aiming to apply part of their know-how to power generation and related sectors.

Canada launches first utility-scale smart microgid

July 15 – The Ontario-based municipal utility North Bay Hydro Services is cooperating with the smart grid solutions firm S&C Electric to launch Canada’s first utility-scale microgrid system. Among some solar power, the 789KW microgrid system will be powered by two 265kW natural gas generators.

Macquarie funds Mexican power plant

July 12 – 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.

B&V launches distributed energy group

July 11 – Black & Veatch has launched a dedicated distributed energy group to place its conventional power business in the context of the global energy transition. The distribute energy group will look into new fuel sources such as hydrogen and aspires to “re-power the more-than-century-old power industry.”

Funding secured for Kazah CHP project

July 10 – Kazinform Erg has committed to spend $500 million on a gas cogeneration station that will provide heat and electricity to the south of Kazakhstan. Over 87% of Kazakhstan’s electricity is generated from fossil fuels, and in 2018 the country produced 107,060 billion kWh of electricity, a 3.8% increase over the previous year and enough to cover total power use of 103,228 kWh.

Bitcoin mining uses much energy

July 9 – Estimates of bitcoin’s electricity consumption are wide-ranging, on the order of 20‑80 TWh annually. According to George Kamiya, digital energy analyst at the International Energy Agency (IEA), bitcoin mining consumed around 45 TWh in 2018 although this has risen significantly this year. Through the first six months of 2019, bitcoin mining has already consumed an estimated 29 TWh.

Coal exit doesn’t impact Germany's supply security

July 8 – Electricity supply security in Germany is set to stay “very high” even as the country begins to phase out coal-fired power generation, the Federal Ministry for Economic Affairs and Energy (BMWi) said in a monitoring report. “Energy supply is adequately ensured”, the ministry said, in all scenarios examined up to 2030. Thereafter, things are less clear but the German Coal Commission is adamant that its proposal to exit coal power by 2038 is feasible and won’t seriously impact reserve margins.

Hydrogen demo plant starts in Adelaide

July 5 – The Australian Gas Networks (AGN), part of the Australian Gas Infrastructure Group (AGIG), has received A$4.9 million in government funding for an A$11.4m hydrogen electrolyser demonstration project at the Tonsley Innovation District in Adelaide. At the test site, AGN plans to blend 5% renewable hydrogen with natural gas for supply to customers using its existing gas distribution networks. The project is based on a Siemens proton exchange membrane (PEM) electrolyser, running based on wind and solar power.

Wärtsilä forms biogas solution

July 4 – Wärtsilä Puregas Solutions, specialists in biogas upgrading technology, has merged with Wärtsilä’s biogas liquefaction team to create a one-stop-shop service for biofuel production. Having installed the world’s largest bioLNG facility in Skogn, Norway, Wärtsilä will deliver two more bio-LNG plants to customers in Scandinavia. The company’s Puregas CA process recovers more than 99.9% of the biomethane present in raw biogas.

PNM to close San Juan Generating Station

July 3 — New Mexico's largest energy holding, PNM Resources, has filed an application to the Public Regulation Commission to close the coal-fired San Juan Generating Station. For replacement power, PNM said the preferred option was a mix of gas power plants, solar and wind farms and new battery storage facilities. The utility strives to be ‘emissions-free’ by 2040.

ADB opens office in Singapore

July 2 — The Asian Development Bank (ADB) has decided to open an office in Singapore. The lean office with twelve staff will focus on the expansion of its private sector operations, e.g. through Public-Private Partnerships. “We estimate that developing Asia will need $1.7 trillion per year in infrastructure investments until 2030 to maintain the region’s growth momentum,” commented Singapore’s finance minister Heng Swee Keat.