Daily News

New investments in gas-fired capacity in the UK are being put on hold until there is clarity surrounding the government's ongoing Energy Market Reform (EMR), George Grant, Director at Stag Energy told Gas to Power Journal at the Westminster Energy, Environment and Transport Forum keynote seminar in London. "The industry acknowledges that we are waiting for the EMR, part of which is the capacity mechanism that's being talked about [and] there isn't going to be any new investment in gas until that's clarified. So the phrase that's being thrown out about there being a dash for gas is just incorrect," he said.

The power sector in Pakistan has seen nationwide load-shedding in the last week of May, leaving electricity production in an estimated 4,000MW shortfall, after the closure of the partially state-owned Qadirpur gas field for annual maintenance contributed to a gas shortage of reportedly 1.2 billion cubic feet a day (Bcf/d).

Tamarete Energia, a special purpose company owned by power and water utility HERA Group, BKW Italia and Odoardo Zecca, has started commercial operations of its new 104-megawatt combined-cycle power plant (CCPP) near the city of Ortona, using two GE gas turbine generators and one steam turbine generator.

Appalachian Power, a unit of American Electric Power (AEP), has sought approval to start a $65 million project to convert the coal-fired Virginian Clinch River Plant to run on natural gas, to comply with the Mercury and Air Toxics Standards Rule introduced by the Environmental Protection Agency's (EPA).

If the project goes ahead, AEP aims to complete the entire conversion before 2016, while units 1 and 2 scheduled to be re-fuelled with natural gas by end-2014.

Sembcorp Industries (Sembcorp) has been given the green light by the Vietnamese government that its 1,200-megawatt (MW) project in central Vietnam will be included in the country's national power development plan for the 2011-2020 period.

The implementation of a capacity mechanism as part of the UK's Energy Market Reform (EMR) should be done "as soon as possible" in order to spur investment and prevent electricity shortfalls in the coming decade, Stephen Davies, Energy and Environmental Policy at E.on UK told Gas to Power Journal at the Westminster Energy, Environment and Transport Forum keynote seminar in London. "From our point of view a capacity mechanism is necessary. It's very difficult for any investor to build right now and looking at the spark spread, the market is very challenging for gas," he said.

Upgrade works at RWE npower's combined-cycle gas-fired Little Barford Power Station, located on south of St Neots, have been completed and, following a year-long £100 million upgrade, the plant is now operates with an higher efficiency of 55 percent and reduced carbon and nitrogen oxides emission, the operator confirmed.

Discoveries of offshore gas field in Tanzania are expected to prompt the government to help expand the market share of gas-fired power generation with a view to decreasing dependence on hydropower to reduce risk exposure to drought, the US Energy Information Administration (EIA) forecasts.

Brunei's national energy company Berakas Power Company (BPC) has commissioned GE Oil & Gas to install its ORegenTM waste-heat recovery systems to increase the output and efficiency of four GE LM2500 aeroderivative gas turbines at the Berakas Power Station, located outside the capital city of Bandar Seri Begawan in the Sultanate of Brunei.

Start-up of the delayed 775MW Denizli power plant, developed at a cost of €600 million under a joint venture between RWE (70%) and Turcas (30%), is expected to take place as early as June, RWE confirmed. The combined-cycle gas turbine (CCGT) plant was initially planned to commence full commercial operation at the end of 2012.

Progress Power, a British power plant developer, has proposed to build a 299MW gas-fired power plant valued at £200 million for the Eye Airfield in Suffolk. Development of the project, however, hinges on forthcoming legislation on capacity remuneration mechanisms in the UK.

"In order to get project financing we need long-term revenue certainty by successfully participating in the capacity mechanism auction," said Chris McKerrow, project manager for Progress Power on the Suffolk project.

India's Central Electricity Authority (CEA), which oversees development of the national grid for the Indian Ministry of Power, has reduced its gas-fired generation target for the current year by almost 46 per cent amid gas supply shortages. Low natural gas production output last year is expected to continue through 2013, an official told The Economic Times, despite Reliance Industry's recent announcement of a "significant gas condensate discovery in deepwater KG D6 block".

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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