Daily News

NRG Energy subsidiary Louisiana Generating  has abandoned plans to convert the 230 MW Big Cajun-I gas-fired power plant to coal generation. Declining natural gas prices prompted the operator to stick to gas-to-power as the more economic option of generating electricity.

Traded natural gas contracts in the U.S. need stay on low levels to motivate electricity producers to continue with coal-to-gas substitution in Powder River Basin coal-burning regions, investment bank Goldman Sachs said.

Eurelectric sees the introduction of capacity remuneration mechanisms as an 'option of last resort'. "Policymakers should only consider introducing capacity remuneration mechanisms, or capacity markets, where the proper functioning of energy-only markets is still not enough to ensure system security," Anne-Malorie Géron, head of Eurelectric's Market Unit, told Gas-to-Power Journal.

Investment bank Goldman Sachs said today a 14 pence price rise of NBP gas contracts for delivery between July and end-September is needed to prompt diversions of LNG cargoes from higher-yielding Asian destinations to the U.K. European power producers are advised to hedge forward gas in anticipation of rising prices.

Datang International Power Generation, the Hong Kong Stock Exchange-listed entity of state-owned utility China Datang, has received the regulatory green light to build a gas-fired power project in Beijing.

The Danish government pledges the country can rely entirely on renewable energy by 2050, however gas-fired power generation and increased interconnection capacity are vital to balance electricity supply and demand. "Gas will be needed as a backup for renewable energies, but we are working on replacing natural gas with biogas and other renewable gases," Marlene Hein Nybroe, gas development and preparedness manager at Energinet DK told Gas-to-Power Journal.

Datang International Power Generation and Shaoxing Thermal Power Generation Company have joined forces to build the Jiangbin gas-fired power plant, located in Binhai New Town, southwest of Shanghai. The Shaoxing Jiangbin power plant project involves the construction of four gas-steam cycle thermal power cogeneration units. In the first project phase, two 452 MW generating units with a total installed capacity of 904 MW will be built, the operators confirmed today.

The Spanish Congress of Deputies supports the timely introduction of a new cogeneration tariff, with Acogen, Spain's cogeneration association, calling the congress support a "very positive step". Investment into new CHP plants in Spain has come to standstill, following the decision of Spain's government to enact a temporary halt to new feed-in-tariff contracts for renewable energies starting January 2013.

Abu Dhabi National Energy Company (TAQA) has entered an accord with Mass Global Investments Company Limited (MGIC) to buy 50% stake in a gas-fired plant in Iraq's Kurdish region. Upgrade works are currently effectuated with a view to expanding the plant's existing capacity of 750 MW with an additional 250 MW, TAQA confirmed today. 

The share of gas-fired power generation in the U.S. is forecast to surge by about 17% in 2012, amid a 10% decline in coal-based power generation, the U.S. Energy Information Administration (EIA) said in its short-term energy and summer fuels outlook.

GE unit GE Energy Financial Services will auction 225 MWs of bi-directional electricity transfer capacity from its Linden variable frequency transformer (VFT) smart grid project at the intersection of the New York City and PJM power grids. The electricity originates at GE's 900 MW Linden cogeneration power plant, the operator said today.

Iran is gearing up to produce 'home-made' gas turbines. "A contract has been signed with Oil Turbo-Compressor Company to make a 100% indigenous [gas] turbine," Iran's deputy oil minister, Mohammad-Reza Moqaddam, said on Monday.

Progress Energy Florida has announced plans to convert the Anclote power plant, located in Holiday, Florida to 100% natural gas. The project is expected to cost approximately $79 million and will be completed in two phases, in mid- and late-2013.

India's gas shortage has reached alarming levels, undermining the Government's aims to boost the share of gas-to-power production. Operation of three gas-fired plants - with a combined capacity of 1,730 MW - had to be halted in India's National Capital Region (NCR) region due to a lack of gas supply to fuel the plants.

Siemens said today it received a third order from South Korea. The German engineering company will built the Andong combined-cycle power plant (CCPP) as a turnkey power plant in cooperation with its Korean partner GS E&C. The latest order from for the H-class technology from South Korea follows orders for the Bugok III and Ansan CCPPs, Siemens said today.

News in Brief

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.

Testing starts at Haliade-X

July 1 – Technology testing has started at GE’s Haliade-X, the world’s biggest offshore wind turbine. The 12 MW nacelle and 107-metre long blade was shipped to the UK as part of an advanced technology testing program, focused on enhancing the platform before it enters into serial production in 2021.

Tata to build UK’s first CCUS plant

June 28 – Tata Chemicals has announced plans to build the UK’s first industrial-scale Carbon Capture, Usage and Demonstration plant at its Northwich industrial site. The CCUD unit will be built at an estimated cost of£16.7 million and is planned to start operation in 2021. It will make use of CO2 emissions from fossil fuel power plants and turn it into sodium bicarbonate, which can then be sold to pharmaceutical industries.

Gazprom seeks to partner with Fortum

June 27 – The heads of Gazprom and Forum, Alexey Miller and Pekka Lundmark, have met in St. Petersburg to discuss a potential cooperation in the field of power generation. The Finish energy company Fortum owns 29.5% of the Russian power plant TGC-1 as well as a 49.99% share in the German utility Uniper. Through the talks, Gazprom could gain Fortum’s support to expand its firm long-term deliveries of Russian gas to Finland and Germany.