Daily News

Lord Deighton, the UK Olympics boss and former Goldman Sachs banker, has been appointed by the government to start negotiations with France's EDF Energy on bringing new nuclear power stations to the UK. Talks are held with the aim to swiftly increase power generation capacity to avoid a supply gap.

Stricter regulations from the US Environmental Protection Agency on SO2, particulate matter, NOx and mercury could make nearly two-thirds of the country's coal-fired power plants just as expensive to run as gas-fired plants. The cost of complying with these regulations will accelerate the trend of power producers shifting from burning natural gas instead of coal, a study from Duke's Nicholas School of the Environment finds.

NRG Energy is to acquire the 560MW equivalent Gregory Cogeneration Plant in Corpus Christi, Texas after entering into a $244 million agreement with a consortium of affiliates of Atlantic Power Corporation, John Hancock Life Insurance Company and Rockland Capital. The plant has a nominal generation capacity of about 400MW and steam capacity of more than a million pounds per hour – an amount equivalent to 160MW of electrical power.

Coal-to-gas switching in power generation has led to a plunge of energy-related carbon dioxide (CO2) emissions in the United States to reach a record low in 2012, dropping to 5.3 billion metric tons of CO2 - the lowest level since 1994.

Malta's energy ministry and state utility Enemalta will invite bidders to express interest for a long-term power purchase agreement (PPA) and a gas supply agreement (GSA) on 11 April. The winning bidder of a tender process will be required to supply about 200MW of electricity from a new combined-cycle gas turbine (CCGT) power plant and corresponding LNG regas facilities.

GE is ready to invest $110 million to build a new Global Research Center in Oklahoma, creating 125 high-tech jobs with the aim of driving technological advancements in the oil and gas sector and bringing products to market faster.

Low carbons prices of around €5/ton in the EU ETS and lower than anticipated funding through the EU's NER300 program mean that there is currently no economic rationale for operators to invest in carbon capture and storage (CCS) projects. To drive commercial CCS deployment, carbon allowance would need to trade at 40€/ton or more, the European Commission's latest report on the future of CCS in Europe finds.

The rising price spread between coal and natural gas is helping coal take back market share. Coal fired generation captured nearly everything lost by renewables and natural gas, surging 21percent higher in March of 2013 compared to March 2012, according to Genscape's Generation Fuel Monitoring Service.

Smaller combined heat and power (CHP) installations are experiencing growth in many EU member states but the sector is also under pressure from the effects of the economic crisis, electricity market issues and ongoing fluctuations in the price of fuel, according to COGEN Europe's 2013 Snapshot Survey of the Cogeneration sector in Europe.

Alstom has been awarded a €125 million contract by Lake Road Generating Company, L.P. to service its 844MW gas-fired combined-cycle power plant (CCPP) located in Dayville, Connecticut. The scope of the agreement covers the plant's three Alstom GT24 gas turbines.

Siemens has received a $300 million order from Panda Power Funds for the turnkey supply of the natural gas-fired 758MW Panda Temple II Power Project in Texas. The multi-shaft combined-cycle project is due to be completed at the end of 2015 and will be able to supply the needs of about 750 000 homes. It will utilise Siemens' Flex-Plant 30 technology and is being built in consortium with Bechtel.

Fuel prices will continue to favour baseload coal-fired power generation over gas-fired generation in the UK through the summer months and beyond, according to the National Grid's Summer Outlook Report. This is despite the application of a carbon price support (CPS) of £4.94/ton on April 1 for the 2013-2014 financial year.

News in Brief

China seen overtake Japan as worlds’ largest LNG buyer by 2025

July 15 – The International Energy Agency (IEA) expects China to overtake Japan as the world’s biggest LNG buyer with imports of 128 Bcm a year by 2025, equivalent to around 174 million tonnes. However, IEA analysts cautioned this scenario is “highly dependent on China’s future policy direction” and whether that includes an ongoing push for coal-to-gas switching for industry, residential heating and power generation.

IEA stages Clean Energy Transitions Summit

July 14 – Ministers from dozens of countries, accounting for over 80% of the world economy, have participated in the first Clean Energy Transitions Summit organised by the International Energy Agency (IEA). Dr Fatih Birol, the IEA’s Executive Director, said there “clearly is momentum” behind a sustainable recovery from the economic impacts of the Covid-19 pandemic. Participants agreed to reconvene in mid-2021.

Siemens Energy to exit coal

Jul 13 – Newly formed technology company Siemens Energy wants to phase-out any operations and technology to related to coal-fired power generation, CEO Joe Kaeser said, without giving a specific timeline. Siemens had been harshly criticised earlier this year for participating in the Adani coal mine project in Australia.

Statkraft, GE enhance GB grid stability

July 10 – Statkraft and GE Power Conversion are working together to stabilise Britain’s power grid. To that end, GE will manufacture and install two Rotating Stabiliser synchronous machines at Statkraft’s site in Keith, Moray. Statkraft was awarded four stability contracts (two at Keith and two at Lister Drive) by National Grid ESO (NGESO) earlier this year.

Siemens Energy spin-off approved

July 9 – A large majority of Siemens shareholders have voted to approve the spin-off of the company’s energy business. The spin-off was approved by 99.36 percent of capital stock represented at today’s extraordinary shareholders’ meeting.

Central Hudson links solar farms to VPP

July 9 – Central Hudson Gas & Electric Corp has established its distributed generation program within the broader context of New York State’s energy plan. Together with Sensus and their Remote Telemetry Module (RTM-III), the Central Hudson will monitor decentralized solar PV backed up by flexible gas gensets.

Siemens and GREEN Solar turn German town CO2-free

July 8 – GREEN Solar and Siemens Energy are jointly developing a concept for making Herzogenrath CO2-free. The plan is to provide an energy-efficient and economical combination of solar power plants, wind turbines, batteries, CHP and combined cycle power plants, as well as heat and hydrogen storage. The hybrid system will be built on the grounds of Nivelsteiner Sandwerke and will be large enough to cover the city’s entire energy demand with zero CO2 emissions by 2030.

Denmark paves the way for Nord Stream 2

July 7– Denmark on late Monday gave the Nord Stream 2 consortium permission to utilize pipe-laying vessels with anchors in Danish waters, paving the way for the Gazprom-led consortium to complete the interconnector. Construction of the 1,230-kilometre pipeline is nearly complete, except for a final stretch of about 120-kilometers in Danish waters. The project was halted in December when the Swiss-Dutch pipe-laying company Allseas suspended works over threats of U.S. sanctions.

EPRI tests early warning system

July 6– The Electric Power Research Institute (EPRI) is conducting trial tests with multiple utilities across the United States of an early warning system. It can detect an off-gassing event as a precursor to thermal runaway up to 30 minutes prior to a cascading failure. This gives plant operators time to mitigate the problem or shut down the system.

KKR buys stake in First Gen

July 3 – Valorous Asia Holdings, owned by KKR investment funds, has bought a 11.9% stake in First Gen through a voluntary tender offer. First Gen, one of the Philippines’ largest independent power producers with 3,492 MW installed capacity, is owned by First Philippine Holdings which is controlled by the Lopez family. KKR’s acquisition of the First Gen stake is worth nearly $192.3 million.

Gazprom’s ‘BBB’ rating affirmed

July 2 – S&P Global Ratings, Moody's Investors Service and Fitch Ratings have affirmed Gazprom's long-term credit ratings as part of their annual reviews. The ‘BBB’ ratings for Gazprom from S&P and Fitch are in line with the sovereign credit rating of the Russian Federation, while Moody's ‘Baa2’ rating is a notch higher.

MHIEC to refurbish WtE plant in Kushiro

July 1 – Mitsubishi Heavy Industries Environmental & Chemical Engineering Co (MHIEC) has received an order from the Kushiro Wide-Area Federation to repair and improve the core equipment at the local Waste-to-Energy plant in Takayama. The WtE plant has a capacity of 240 tonnes per day (tpd). Renovation will increase the energy efficiency of the fluidized bed type gasification and ash melting furnace facility, reducing emissions by around 15% annually. Works are due completed in September 2023.

Nigeria: Only two of six power projects on target

June 30 – Nigeria’s Bureau of Public Enterprises has disclosed that only two out of six privatized power plants were delivered on target. Only Transcorp Power Ltd and Geregu Power Ltd out of the six privatised electricity generation companies (GENCOs) were said to have met their performance targets since taking over.

German investors prefer solar over wind

June 29 – Energy infrastructure investors are keen to build solar power projects in Germany, but shun wind parks. In the latest solar power auction, investors offered to build almost 450 MW of capacity – more than four times the 96 MW of volume on offer– with the average successful bid at 5.27 cents per kilowatt-hour (ct/kWh). The wind auction, in contrast, was undersubscribed: The German network agency  (BNetzA) tendered around 826 MW, but successful bids only totalled 464 MW, at an average price of 6.14 ct/KWh.

MAN ventures into synthetic fuels

June 26 – MAN Energy Solutions has entered the hydrogen economy with the recent pro rata acquisition of H-TEC SYSTEMS, an electrolysis tech firm. The German OEM also committed itself to upgrading its gas turbines to run on 100% hydrogen by 2030.

Varegro starts using Cummins gas genset

June 25 – Belgian-based horticultural company Varegro, has started to use a Cummins HSK78G gas generator to power its greenhouses in Oostrozebeke, West Flanders. Varegro said it selected the Cummins HSK78G genset to produce combined heat and power (CHP) on its premises at a competitive cost for use in energy-intensive greenhouse facilities.

GE names Deloitte as independent auditor

June 24 – GE’s audit committee has selected Deloitte as the company’s independent auditor for the 2021 fiscal year, replacing KPMG. The selection of Deloitte concludes GE’s latest audit tender process.

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