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Daily News

Exxon Mobil's gas turbine oil Mobil DTE 932 GT reduces the risk of varnish to help improve the operational reliability of turbines and increase power output. "Varnish can have a highly detrimental effect on gas turbine operations," said Kirill Chervyakov, Industrial Marketing Advisor, ExxonMobil Fuels and Lubricants, stressing the new lubricant meets the standards set for GE frame 3,5,6,7 and 9 turbines.

SoCalGas, a gas grid operator in California, is spending £1 million on the cleantech fund LA Cleantech Incubator (LACI) to develop 'renewable natural gas.' "Biogas is one source but, in the future, we expect other pathways such as 'water splitting' through solar chemical conversion and hydrogen electrolysis to provide renewable natural gas," said Jeff Reed, SoCalGas director of business strategy and development.

 Up to 60 percent of Saudi Arabia's ageing oil-fired capacity is foreseen to be replaced by gas generation by 2030. "If electric power continues to be generated on a large scale by inefficient oil-fired power plants, as it is today, then the Middle East would have to import crude," warns a Siemens study, carried out by the Technical University of Munich.

Power market liberalisation in Japan and South Korea is slowly forthcoming; and the lack of clarity over nuclear energy has prompted major utilities to delay firm LNG procurement decisions which could cause a supply crunch in the Pacific Basin, warns Gavin Thompson, head of Asia Pacific gas & power analysis at Wood MacKenzie.

Value and use of fossil baseload capacity is declining in the Southwest Power Pool (SPP) in the US as wind capacity doubled from 3.4GW to 6.8GW in the three years until June 2013.

Turkey's government is plagued with a new headache over costs of gas imports after Abu Dhabi-based energy group Taqa decided to pull out of a $12 billion coal-fired power project. Domestic coal is seen as a leeway to reduce Turkey's annual $55bn energy import bill, and policy makers in Ankara have introduced tax breaks in favour of coal generation.

Action seems forthcoming from policy makers in continental Europe to follow Britain's lead and introduce a carbon-floor price as a means to improve the profitability of gas-fired power generation (spark spreads). Germany's Green party calls for a minimum national carbon price of €15/ton, while the CEO of Austria's biggest utility Verbund, Wolfgang Anzengruber suggested only a carbon price at €35/ton would promote a switch from coal to gas.

Tension is rising between policy makers and utilities amid rising urgency to invest in new power generating capacity in the UK. Policy makers keep urging utilities to fund much-needed new capacity, but cash-constraint utilities need to first reorganise their balance sheet before they can fund new-build projects, says Ben Caldecot, head of government advisory at Bloomberg New Energy Finance (BNEF).

A nearly continual scale up of power demand in parts of Asia over the next 20 years might mean power-starved manufacturers in these economies seek out distributed energy, such as rented natural gas reciprocating engines, said a report by Frost & Sullivan.

Japanese utilities are rushing to step up LNG imports, spurred by Kansai Electric Power's announcement it will suspend operations of its two Ohi reactors until they comply with more stringent safety regulations. Gas-fired generation is vital to make up for the lost nuclear capacity and to avert the risk of power shortages.

Up to 2020, sales projections for distributed gas engine and turbine sales in Combined Heat and Power (CHP) applications will not be affected by shale gas prices. "Until then, country-specific policy measures, alongside slowly improving spark spreads based on non-shale energy price drivers, will be more important," says Michael Brown who leads Delta-ee's research on CHP markets.

A GDF Suez-led consortium has awarded Ansaldo Energia and FATA a turnkey construction contract, valued at $581 million (€440 million), to realise two open-cycle gas turbine power plants (OCGT) in Avon, South Africa.

News in Brief

Mott McDonald starts construction on ALCP6

Oct 20 – US construction firm Mott McDonald has started building the ALCP6 waste to energy project in Krabi province, southern Thailand. The plant will incinerate 144,000 tonnes per year of municipal solid waste, and the heat obtained will be converted into 6 MW of electricity to be exported to the Thai national grid.

Brace for EU sustainable finance rules

Oct 19 – Sustainable finance practices, drawn up by the European Commission, could create a "bureaucratic monster" that smaller companies and energy investors would find overbearing, the Munich-based Institute for Economic Research (ifo) warned. The regulation should hence prioritise closer scrutiny of large and listed companies.

UK could become net power exporter

Oct 16 – Increased interconnection could provide a route for excess offshore wind power in Britain to be consumed elsewhere in Europe. National Grid Interconnector Register shows up to 16 GW of interconnection could be operational by 2025 and up to 25.4 GW by 2030.

Wärtsilä to deploy GridSolv in US city

Oct 15 – AEP OnSite Partners has contracted Wärtsilä to deploy its GridSolv Quantum energy storage in the city of Martinsville, Virginia. The system includes an UL9540A limiting 2-hour battery firewall and will help lower the city’s energy costs.

Rolls-Royce spends $13.9m in Mankato

Oct 14 – Britain’s engine maker Rolls-Royce has decided to invest nearly $14 million in its Power System business to build a new R&D centre at its MTU manufacturing plant in Mankato, Minnesota, US. The expansion will see 28,000 square foot added to the facility’s existing hall, making room for the production of high-power MTU gas gensets, enhanced product testing and the creation of 20 new manufacturing positions.

Clarke commissions Vitalait power unit in Tunisia

Oct 13 – Clarke Energy and INNIO Jenbacher have completed the commissioning of an onsite power plant of a milk producer in Tunisia. The installation of another Jenbacher gas engine has increased the plant’s output to 4 MW of electricity as well as 1,100 kW of hot water and 800 kW of steam.

Secondary battery market to top $55bn

Oct 12 – Technavio expects the secondary battery market to grow by $55.62 billion through 2024, rising at an 11% rate over the forecast period. Falling costs for lithium-ion batteries as well as growing demand in Asia Pacific allowed the market to grow 2.01% this year, despite adverse effects of the pandemic. Top battery suppliers are Tesla, Clarious, Exide, LG Chem, GS Yuasa and Samsung.

Shift to sustainable tech

Oct 9 – Three quarters of utilities, surveyed by EIT InnoEnergy, are considering adopting sustainable technology over the next 12-18 months. However, over one third of the respondents found it hard to recruit the skills they need.

Generator rentals slow

Oct 8 – The rental market for power generators has slowed down due to the pandemic, with genset rentals from the oil and gas industry forecast to grow by just $153.87 million this year. However, Technavio expects the market will return to a 3% annual growth rate by 2024.

GE upgrades Italian CHP

Oct 7 – GE has completed an axial fuel staging upgrade on its 9E gas turbine at an onsite combined heat and power (CHP) plant at the Milazzo refinery in Sicily. The entire electricity needs of the refinery, over 780 GWh in 2019, will soon be supplied by the upgraded and more flexible gas turbine.

Operating assets ‘from anywhere’

Oct 6 – GE Digital’s latest software gives electric utilities remote and mobile control over their power stations for remote start-up, external monitoring and operational fine-tuning. The goal is to safe cost through autonomous operation from any location.

Chart wins order from New Fortress Energy

Oct 5 – Chart Industries has secured a second leasing order, worth $7.7 million, for ISO containers for LNG applications from New Fortress Energy for a project in the Caribbean. The US equipment maker sees double digit near-term growth in its repair, service and leasing business, notably from growing demand for LNG equipment for infrastructure.

Siemens energises Togo

Oct 2 – Siemens Energy has delivered a SGT-800 gas turbine and other components for the Kékéli Efficient Power plant project. Located in the Togolese capital Lomé, the 65 MW plant will cover almost 40% of country’s expected electricity demand.

Batteries get cheaper

Oct 1 – Cost for battery production is falling rapidly as manufacturers bring large Gigafactories on-line. By 2030, Bloomberg New Energy Finance anticipates battery pack prices to drop to $73 per kilowatt-hour, down from a current volume-weighted average of below $270/kWh.

Barclays may help fund Rolls-Royce

Sept 30 – UK’s prime engine maker Rolls-Royce is understood to be close to getting fresh financing from Barclays Bank. The Derby-based company, however, insists no final decision has been taken on the precise amount that may be raised or any allotment of shares to any investor.

Petronas to truck LNG to off-grid users

Sept 29 – Petronas Dagangan Group is gearing up to build a LNG truck delivery service for off-grid customers in Peninsular Malaysia. Trucks fitted with cryogenic tanks will bring the super-chilled fuel to remote industries and small-scale power generators with no access to the natural gas grid. Malaysia’s Peninsular Gas Utilisation (PGU) pipeline is only 2,500 kilometers in length and was initially built to export gas to Singapore.

Siemens to reduce emissions at NLNG

Sept 28 – Nigeria LNG has contracted Siemens Energy to provide a cryogenic boil-off gas (BOG) compression train for its liquefaction plant on Bonny Island. The new BOG train will be driven by an high-efficiency electric motor and includes two compressors. Manufactured in Duisburg, Germany, the equipment will be delivered in the fourth quarter of 2021.

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