Daily News

South Korea has risen high on the agenda of Siemens, Germany's engineering giant, who is targeting the country as a key growth market for gas turbine sales.

Sales prospects and revenue generated in Asia and the Middle East currently more than offsets reduced earnings in ailing European markets, says Lothar Balling, Head of Gas Turbine Power Plant Solutions in the Fossil Power Generation Division at Siemens Energy.

Germany's largest utility E.on said it has no intention of building additional gas or coal-fired capacity in western Europe until 2020 as it expects markets to be oversupplied with power generation capacity until the final shutdown of all German nuclear reactors.

Wärtsilä, a leading supplier of gas engines, has singled out the United States as a fast growing market for Smart Power Generation (SPG). "Ancillary services such as spinning reserve, frequency regulation and black start capability can all be sold in the market," Melle Kruisdijk, Director Market Development, Wärtsilä Power Plants told Gas to Power Journal.

Japan's Toyota Motor Corporation (TMC) has announced plans to install eight additional cogeneration gas power generators and demand management systems before year-end with the aim of reaching a rate of 30% self-sufficiency in electricity supply at its manufacturing plants.

Wärtsilä, a supplier of flexible power plant solutions, has won a contract to supply equipment for a  gas engine based expansion to the McArthur River zinc mine power plant in Australia's Northern Territory. The scope of supply includes six 34SG engines running on natural gas with a combined output of 53 MW and related engineering services.

A pilot power-to-gas plant that will enable the storage of electicity generated by wind turbines in the gas grid will start operations in Germany in 2013. E.on said it started construction works of the pilot facility, located in Falkenhagen, north-east Germany.

Hong Kong has secured sufficient natural gas supplies from China but pricing issues constrain operators to switch from coal-to-gas generation, Larry Chuen-Ho Chow, Director, Hong Kong Energy Studies Centre at Hong Kong Baptist University told Gas to Power Journal.

Investment in combined-cycle gas turbine (CCGTs) power plants in Germany are "highly problematic" as decreasing, even negative clean spark spreads resulting from reduced runtime hours have cut profit margins to zero". Unless capacity remuneration mechanisms are introduced, PricewaterhouseCoopers sees no market signals that could convince operators to build new plants.

During the first half of 2012, new gas-fired and renewable capacity has dominated power plant additions in the United States. As total of 165 new electric power plants were added in the 33 federal states, with combined new capacity of 8,098 megawatts (MW), according to the US Energy Information Administration (EIA).

NAES Corp. said it has taken over the operations and maintenance (O&M) of the 748 MW Salem Harbor Power Plant. An affiliate of Footprint Power bought the coal-fired plant from Dominion in early August with the intention switching the plant to run on natural gas.

Germany's energy industry association BDEW on behalf of its members has submitted a discussion paper to the Ministry of Economics (BMWi) pushing for a deal to compensate operators for refraining from carrying out planned closures of fossil power plants to guarantee supply security during the upcoming winter period.

As Europe increases its dependence upon green renewable energy as a major source of power generation, it will also need to install fast-starting, aero-derivative gas turbine generators to backstop the electricity grid, forecasts Swift Tarbell, Area Director for Europe with Pratt & Whitney Power Systems.

The Pratt & Whitney Power Systems' 30MW / 60MW FT8 and soon-to-be-launched 60MW / 120MW FT4000 SwiftPac gas turbine units can reach full load on the grid in less than 10 minutes from cold start, and are able to quickly fill the sporadic gaps in power supplied from intermittent wind and solar power technologies.

The German government has abandoned plans to help finance up to 15 percent of the investment costs of new coal-fired power plants, with carbon capture and storage (CCS) technology. The lack of public support for storing carbon underground could shift political support towards gas generation.

Whether US operators choose to dispatch electric generators largely depends on system demand for electricity and the relative cost of operating the plant, a report by the US Energy Information Administration (EIA) shows.

Doosan Heavy Industries (Doosan HI) is considering local investment in India with the aim of better tapping into the country's rapidly growing power generation market.

News in Brief

Slow start of STT pipeline

Oct 18 – U.S. gas exports to Mexico have not picked up substantially despite the start of the Sur de Texas-Tuxpan (STT) pipeline. Exports are still below 6.0 billion cubic feet per day (bcf/d), although there no current postings regarding maintenance on the Sistrangas pipeline that feeds from NET Mexico.

EIB defers ban on fossil projects

Oct 17 – Luxembourg-based European Investment Bank (EIB) has bowed to pressure from Germany and the European Commission and deferred its decision to ban loans to fossil-fuel projects until mid-November. Germany wants the bank to keep financing gas-fired power projects as it views the cleaner-burning fossil fuel as a vital backup for renewable energy sources.

Brexit will not impact UK gas supply

Oct 16 – Security of power and gas supply in the UK will not be jeopardized this winter by the country’s imminent departure from the European Union, even in the event of a hard Brexit, National Grid said. In its assessment, the TSO factored in a halt to flows via the Belgium and Dutch gas interconnectors “from EU exit day one”, but said ongoing deliveries from Norway, the UK Continental Shelf and storage will continue as usual.

Ferrybridge C gets demolished

Oct 15 – Four cooling towers at the Ferrybridge Power Station have been taken down as the coal-fired power station will make way to a new, high-efficiency gas power station. Operator SSE shut down the 500 MW Ferrybridge C unit in March 2016 and now started to tear it down.

Global energy storage tops 10 GW by 2025

Oct 14 – The global market for grid-connected energy storage will grow by 6,900 MW, or 16.6% to reach over 10,500 MW by the end of 2025, according to Reportlinker.com. Germany will add over 267 MW energy storage installations over the next five to six years, while 330 MW will come from other European markets. These numbers are dwarfed by China, where up to 1,200 MW energy storage units could be connected to the grid by 2025.

Wärtsilä services EDL plant

Oct 11 – Energy Developments Ltd (EDL) of Australia has awarded Wärtsilä a service contract for gas engine-based baseload power plant at the McArthur River zinc mine in Northern Territory. The maintenance approach for the 53 MW onsite power plant is no longer pre-planned and scheduled but has been changed to condition-based and predictive maintenance, with an advisory contract.

EPH buys CCGT in Galway

Oct 10 – The Czech energy company EPH has received regulatory approval to purchase an 80% stake in the 400 MW Tynagh Energy combined-cycle gas power plant in Galway, Ireland. Mountainside Partners will continue to own the remaining stake in the CCGT, which operates based on a security-of-supply contract from the Irish TSO based on guaranteed power prices.

ITM gets £38m boost from Linde

Oct 9 – Sheffield-based ITM Power, maker of electrolysers for hydrogen production, has been boosted by a £38 million cash injection, as Linde acquired a 20% stake in ITM at 40 pence per share. Looking ahead, ITM said it is seeking to raise £14 million from new and existing institutional investors.

Drax to convert two power units

Oct 8 – Drax Group has received government approval to convert up to two coal-fired generating units at its power station in North Yorkshire to run on natural gas. With this ruling, the UK regulator overturned objections by ClientEarth, stressing some fossil power is vital for the UK to backup intermittent renewable power source.

Storage use tops 80% in key U.S. regions

Oct 7 – Gas storage utilization in the United States is rising in the autumn, with net injections topping 112 billion cubic feet (Bcf) in the first week of October. According to EIA figures, underground storages are at least 80% full in the East, Midwest, and South Central non-salt regions, allowing for seasonal withdrawals to help meet peak-day gas demand throughout the upcoming winter.

Maine, NY aspire to 100% clean energy

Oct 4 – Three U.S. states—Maine, New York, and Ohio—have updated their renewable portfolio standards (RPS), since May 2019. As a result, Maine and New York joined California, Hawaii, Nevada, New Mexico, and the District of Columbia in requiring 100% clean electricity by 2050.

TransAlta to built CHP in Alberta

Oct 3 – Canada-based Transalta and SemCAMS Midstream have agreed to develop, construct and operate a new cogeneration facility at the Kaybob South No. 3 sour gas processing plant in Alberta. To be built at a cost of some 105 million, the CHP will have an installed capacity of 40 MW. Start of commercial operation is targeted for late 2021.

GE’s 100th HA turbine sold in Greece

Oct 2 – Greek industrial firm Mytilineos has ordered a GE 9HA.02 gas turbine to be the heart of the 826 MW Agios Nikolaos combined-cycle gas power plant. This deal also marks the 100th unit of GE’s HA gas turbine sold. Construction of the CCGT is due to start before the end of the year.

ABB launches M4M analyzer

Oct 1 – Swiss technology firm ABB has launches its first Bluetooth-equipped network analyzers, called M4M. The system gathers data from distribution grids and connects them to a cloud-based control system, allowing users to react on energy consumption and on-site power generation trends.

Microsoft invests in wind power

Sept 30 – Microsoft and ENGIE have entered a long-term solar and wind energy power purchase agreement (PPA) in the United States. The deal will see Microsoft purchase a total of 230 MW from two ENGIE projects in Texas, bringing Microsoft’s renewable energy portfolio to more than 1,900 MW.

Gazprom tackles issue of ownerless gas grid

Sept 27 – Gazprom, the main supplier of pipeline gas to Europe, is trying to settle the issue of ownerless gas pipelines – a relic of the former Soviet Union. Abandoned gas transmission pipeline spanned 6,651 kilometers as of March 1, with the issue seen as “especially acute” in the North Caucasus region where half of this infrastructure is located. If no owner registers these facilities within three months, Gazprom will take over to ensure reliability and safety.

Investors flock to Myanmar

Sept 26 – Fitch Ratings has singled out Myanmar’s power sector as one of the largest beneficiaries of foreign direct investments (FDI) worldwide. Nearly $21.2 billion was poured into power generation and energy infrastructure projects thus far in 2019, which is 27% of total FDI under the Myanmar Investment Law.