Daily News

South Korea coal-fired power plants will be mandated to meet a new 0.4% sulphur limit in coal consumption, effective from July 2018. The new law is meant to diversify the energy mix away from fossil power sources but WoodMackenzie analysts warn the new policy will push up the cost of power generation, impacting on electricity prices.

Swedish battery developer Northvolt, founded 2016, has entered a technology partnership with Siemens to jointly set up the first large-scale lithium-ion battery cell production in Europe. Siemens will support the venture through a €10 million investment that helps digitalize Northvolt’s value chain from the design of the battery cell to production and services. Once completed in 2020, Siemens intends to purchase batteries from the factory by making Northvolt a preferred supplier.

Canada’s current policies, combined with energy efficiency investment, could deliver final energy savings of 1.9% per year on average through 2050, the International Energy Agency (IEA) finds. Sectors with the greatest energy savings potential would be buildings (28%), followed by transport (25%), oil and gas extraction (21%) and industry (12%).

Canada, the largest energy trading partner of the United States, consistently exceeds the value of U.S. energy exports to Canada by a large margin. According to EIA figures, energy accounted for $73 billion, or about 24%, of the value of all U.S. imports from Canada in 2017, while Canada merely imported energy worth $18 billion from its southern neighbour.

Dirty king coal is no longer vital for Germany’s security of power supply. In fact, about half of the country’s coal-fired power generation capacity could be shut down over the coming years if planned grid extension and the additional gas-fired plants start operating according to schedule, said Jochen Homann, head of the German energy regulator.

Bonaire in the Caribbean and the Faroe Islands in the North Atlantic: these two self-sustaining islands are setting standards in integrating renewable energy sources, supported by MAN Diesel & Turbo gensets. On the Faroe Island, four MAN 9L51/60 four-stroke engines are being installed to expand the existing Sund power plant near the capital Tórshavn.

Deployment of electric vehicles so far has fallen short of expectations hence penalizing policy measures, like London’s new Emissions Surcharge, or T-Charge, have been introduced to spur growth. Penalising offending vehicles is one part of the solution, finds Jacob Klimstra, Senior Energy Consultant and Member of the Advisory Board for Electrify Europe. He highlighted plans by the Dutch government for all new cars to be zero-emissions vehicles by 2030 – others, including Paris, are already following suit.

The hype about electric car is not really translating into sales. Hybrid electric, plug-in hybrid electric, and battery electric vehicles have been sold in the United States as alternatives to conventional gasoline vehicles for a number of years, but their market share from 2012 through 2017 remained below 4% of total light-duty vehicle sales, even as the number of available models increased from 58 to nearly a hundred.

U.S. oil major ExxonMobil has set its first company-wide targets to reduce emission from operations across the gas value chain. The aims is to reduce methane leaks by 15% and gas flaring by 25% by 2020, and Exxon said it has started to deploy new equipment at it upstream and midstream operations to reach these goals.

Siemens has opened a new competence center for digital precision in industrial 3D printing, the Additive Manufacturing Experience Center (Amec), on its campus in Erlangen, Germany. Amec targets machine builders, power plant operators and companies who use additive manufacturing to design and construct workpieces. Digitalization hereby plays a central role.

Technology of battery-based energy storage has matured and industry stakeholders in some regions of the United States have gained experience financing, procuring, and operating power storage installations. Lithium-ion chemistries batteries currently make up 80% of large-scale U.S. power storage, and most of the capacity is being installed in California followed by the Pennsylvania-New Jersey-Maryland Interconnection (PJM).

Just days after NTE Energy inaugurated its $645 million Middletown Energy Center in Ohio, the utility confirmed it will invest more than $1 billion to develop the 1,000-MW Anderson County Energy Center in South Carolina. Florida-based NTE hailed the 525-MW Middletown combined cycle facility as among the most efficient gas-fired power plants in the United States. The plant’s operation commenced on May 21, some 31 months after construction began.

Mexico, the largest buyer of US pipeline gas and LNG, is preparing a tender for strategic storage at depleted oil and gas reservoirs. Cenagas, the Mexican National Natural Gas Control Centre, has already selected four underground sites – Acuyo, Brasil, Jaf and Saramako – from a list of 15 proposed sites. Registering strong bidding interest from foreign players, the Mexican Energy Secretariat (Sener) will hold the tender in September 2018.

The United States has remained the world's top producer of petroleum and natural gas, reaching a record high output in 2017. Petroleum production surged by 745,000 barrels per day (b/d), driven by a 21% increase in oil prices to approximately $65 per barrel by the end of last year, and as of late oil prices keep rising.

Though the Pakistani government hailed the sudden surge in power production and supply, load-shedding still persists and cripples the local industry. Electric power supply jumped 48% to over 10,135 GWh in April, a substantial rise compared with 6,879 GWh in April last year, flowing the startup of three RLNG-fuelled power plants in Punjab province.

News in Brief

GE risks €35m fine in France

June 19 – French government officials said GE will have to pay penalties if it fails to realise its pledge to create 1,000 jobs in France by the end of this year. GE made the promise in 2014 as part of the €12.4 billion takeover of Alstom’s power generation and grid business. "The contract called for a 50,000 euro penalty for every job not created," France’s labour minister Muriel Penicaud told BFM television.

MAN to deliver engines to Oman LNG

June 18 – Oman LNG is seeking to develop a new gas engine-driven power plant at its Qalhat facilities. MAN Diesel and Turbo will deliver the gas engines and associated equipment, while KBR will manage the project execution, supply the generators and ensure safety requirements.

CHP market to top $27bn by 2023

June 15 – Global market for combined heat and power is estimated to grow at an annual rate of 5.48% to reach $20.69 billion in 2018 and $27.01 billion by 2023. According to Markets and Markets, the main growth drivers are demand for energy efficiency and government incentives and programs to promote CHP.

Enel starts battery storage in the UK

June 14 – Enel Group’s first utility-scale, stand-alone battery energy storage - the 25 MW/12.5 MWh Tynemouth project - is about to start operations, supported by a four-year contract with British System Operator National Grid to provide grid-balancing services. Enel bought the storage venture from Element Power in May 2017, and invested about 20 million Euros in the overall project, including construction.

New Mach Gen files for bankruptcy

June 13 – U.S. power generator New Mach Gen has filed for bankruptcy, presenting a pre-packaged reorganisation plan. New Mach Gen operates three gas-fired power plants with a combined capacity of 2,500 MW in Athens, NY, Maricopa County, Arizona and Charlton, Massachusetts.

Siemens, Covestro partner on digitalization

June 12 – Siemens and Covestro Deutschland have agreed a Joint Business Development Plan that reinforces their longstanding, trust-based partnership in the field of digitalization. Siemens is developing predictive process data models for manufacturing through the use of its cloud-based IoT operating system, MindSphere, while Covestro will introduce its process technology and production expertise to generate joint marketing solutions.

U.S. hurricane season underway

June 11 – With June 1 marking the official start of the 2018 hurricane season in the United States, Dominion Energy has urged customers to prepare and emergency storm kit. The Virginia-based utility is continuing day-to-day preparations for a busy storm season.

EIA broadens energy survey

June 8 – For electricity, the number of end-uses estimated in the EIA’s Residential Energy Consumption Survey (RECS) has expanded from 4 to 26 by adding estimates for various types of equipment. Itemized estimates collectively cover 87% of residential electricity use.

Cost-effective transition towards CHP

June 7 – COGEN Europe, an industry lobby group, has underlined the sector’s commitment to a “cost-effective transition towards a sustainable future in Europe” by means of utilizing combined heat and power generation. CHP provides flexibility across heat, electricity and gas networks and sectors by relying on short, medium and long-term storage to balance energy supply and demand.

Europe’s largest battery operational

June 6 – With a capacity of 48 MW/50 MWh, Europe’s largest battery EnspireME has been in operation since the beginning of this month. Located in Jardelund, northern Germany, the battery will be used as a backup by the local grid operator and participate in the weekly auction of primary reserve capacity. It was built by the Dutch utility Eneco and Japan's Mitsubishi in eight months.

BlueVault powers offshore operations

June 5 – Siemens is applying its electrification experience in the marine industry to offshore oil and gas, focussing on reducing emissions and risk in harsh operational environments. BlueVault, Siemens’ advanced lithium-ion battery-based solution, is suited for both all-electric and hybrid energy-storage applications.

Duke Energy opens new CCGT unit at Lee Station

June 4 – U.S. utility Duke Energy has been continuously operating its new 750 MW combined-cycle gas power unit at the W.S. Lee Station in Anderson County, South Carolina, since the beginning of June. Construction of the $700 million gas power unit started in March 2015, creating more than 600 construction jobs. Now fully operational, the CCGT is expected to generate about $4.4 million in tax revenue for Anderson County in 2019.

Reliability risk in California, Texas

June 1 – California and Texas are two potential tight spots for reliability of electricity this summer, even as most regions seem prepared to meet peak summer demand, the US Federal Energy Regulatory Commission (FERC) notes. In its 2018 energy market and reliability assessment, the regulator predicts warmer than average temperatures which could stir record high gas-burn for power generation.

Siemens to roll-out energy monitoring system at Rexel

May 31 – Electrical wholesaler Rexel Austria has placed an order with Siemens to deliver a cloud-based energy monitoring system which is meant to achieve a 15% reduction in energy use at its logistics center in Weisskirchen. Siemens’ cope of supply includes 66 communication-capable 7KM PAC 1500 and 7KM PAC 4200 power measuring devices, powermanager energy monitoring software, and connection to its cloud-based operating system MindSphere.

MHI calls off tie-up with JTEKT

May 30 – Mitsubishi Heavy Industries (MHI) has discontinued talks to form a business partnership with JTEKT Corp after both parties terminated a basic partnership, agreed in December 2017 together with Mitsubishi Heavy Industries Machine Tool (MAT) that included capital participation in JTEKT. All these plans have now been abandoned.

Sembcorp hires Contact Energy CFO

May 29 – Singapore-based Sembcorp has hired Contact Energy CFO Graham Cockroft to be its new CFO as of September 3, 2018. Sembcorp’s current CFO, Koh Chiap Khiong has moved on to head of the group’s utilities business in Singapore, Southeast Asia and China.

UK remains net electricity importer

May 25 – Great Britain remains a net importer of electricity via interconnectors at peak times in all of National Grid’s 2018 Future Energy Scenarios (FES). The UK grid operator consequently assumes and supports an expansion of the island’s interconnector capacity to reach up to 20 GW by 2050.